– GMV of $178.5 million – Revenue of $85.2 million – Net GAAP Loss of
$0.12 million – Non-GAAP Adjusted EBITDA of $4.8 million
– Long Term Commercial Growth Strategy Remains the Priority
WASHINGTON–(BUSINESS WIRE)–Aug. 4, 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 third quarter ended June 30, 2016. Q3-16 results were
above the company’s guidance range. The company’s performance outpaced
expectations primarily led by our commercial capital assets marketplaces
which experienced better volume and margins related to earlier than
expected completion of sales transactions, early signs of increasing
liquidity in the energy market, and increased buyer demand in our
industrial marketplace.
“Our Q3 results were driven by strong volume and velocity of sales
across our commercial and government client base as we continue to
execute our transformation program, grow our buyer network, enhance our
service offerings and look towards future growth,” said Bill Angrick,
chairman and chief executive officer of Liquidity Services.
“While our energy and industrial groups led our outperformance in Q3,
our state and municipal government marketplace also achieved double
digit top line growth as more sellers utilized our platform and value
added services. Our retail supply chain marketplace continues to attract
new clients and expand existing relationships driven by our strong
recovery rates and innovative returns management services which address
a critical need for both manufacturers and retailers. Additionally, our
team has worked diligently to ready the launch of our first marketplace
on our new e-commerce platform in Q4 which will expand our addressable
market. Our near term outlook remains cautious due to the increasing
costs of our DoD surplus contract, soft pricing in our scrap and energy
verticals, variability in the timing of large client projects in our
industrial business, and ongoing investments in our LiquidityOne
transformation plan,” continued Angrick.
Third Quarter Operating and Earnings Results
The company reported Q3-16 GMV, an operating measure of the total sales
value of all merchandise sold through our marketplaces during the given
period, of $178.5 million, a decrease of 7.8% from the prior year’s
comparable period. Revenue for Q3-16 was $85.2 million, a decrease of
5.1% from the prior year’s comparable period. Net GAAP loss for Q3-16
was $0.12 million, which resulted in a breakeven diluted loss per share
based on weighted average of 30.7 million diluted shares outstanding, a
decrease of 107.7% and 107.5% respectively from the prior year’s
comparable period. Non-GAAP adjusted net income was $2.1 million or
$0.07 adjusted diluted earnings per share, a decrease of 50.8% and
52.0%, respectively, from the prior year’s comparable period. The tax
rate used to calculate Q3-16 results was 28.3%. We expect our future
years’ tax rate to range between 30% to 40%. We exited Q3-16 in a strong
financial position with $129.9 million in cash and a debt free balance
sheet.
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, was $4.8 million, a decrease
of 13.9% from the prior year’s comparable period.
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 Surplus
contract with higher product cost terms, and increased spending for our
LiquidityOne investment program.
Additional Third Quarter Operational Results
-
Registered Buyers — At the end of Q3-16,
registered buyers totaled approximately 2,958,000, representing an
approximately 5% increase over the approximately 2,805,000 registered
buyers at the end of Q3-15. -
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), increased to approximately 642,000 in Q3-16, an
approximately 5% increase over the approximately 611,000 auction
participants in Q3-15. -
Completed Transactions — Completed
transactions increased to approximately 151,000, an approximately 10%
increase for Q3-16 from the approximately 137,000 completed
transactions in Q3-15.
GMV and Revenue Mix —The table below
summarizes GMV and revenue by pricing model.
|
GMV Mix |
||||
| Q3-FY16 | Q3-FY15 | |||
| Consignment Model: | ||||
| GovDeals | 35.9% | 28.3% | ||
| Commercial | 30.0% | 35.0% | ||
| Total Consignment | 65.9% | 63.3% | ||
| Purchase Model: | ||||
| Commercial | 18.2% | 18.4% | ||
| Surplus Contract | 11.7% | 10.0% | ||
| Total Purchase | 29.9% | 28.4% | ||
| Other: | 4.2% | 8.3% | ||
| Total | 100.0% | 100.0% | ||
|
Revenue Mix |
||||
| Q3-16 | Q3-15 | |||
| Consignment Model: | ||||
| GovDeals | 7.5% | 6.2% | ||
| Commercial | 13.4% | 13.8% | ||
| Total Consignment | 20.9% | 20.0% | ||
| Purchase Model: | ||||
| Commercial | 39.6% | 38.5% | ||
| Surplus Contract | 24.6% | 21.6% | ||
| Total Purchase | 64.2% | 60.1% | ||
| Other: | 14.9% | 19.9% | ||
| Total | 100.0% | 100.0% | ||
Business Outlook
In the near term it remains difficult to forecast the sales and margins
of our business because of the variability in timing of projects, as we
transition to our new DoD Surplus contract, and we remain cautious
regarding the impact of macro conditions on our scrap activity with the
DoD. The seasonality in Q4-16 also contributes to variability of results.
Specifically, our DoD marketplace is in the final stages of transition
from the prior Surplus contract extension to the new Surplus contract,
which includes higher costs for products acquired from the DoD. The
extension of our prior Surplus contract will be in effect through
January 2017 and, while we will continue to receive and sell merchandise
under both the old and new Surplus contracts until that time, the mix
will increasingly shift towards merchandise received under the new
contract, resulting in lower margins. Additionally, we have experienced
variability in the volume and mix of property received under our DoD
Scrap contract as well as a decline in scrap metals pricing which has
reduced sales.
Regarding our commercial marketplaces, our outlook also remains cautious
due to the changing mix and volume of supply and timing of project based
activity. Our results will be impacted by the timing and speed of
recovery in the energy sector macro conditions and variability in the
volume, timing and mix of property we receive in both industrial and
retail client programs. These factors will contribute to changing
topline and margin results in certain categories.
We anticipate that Q4-16 results will reflect lower GMV and non-GAAP
adjusted EBITDA than Q3-16 due to seasonality, with Q4 results typically
lower than other quarters, as several client sales anticipated for Q4-16
were completed in Q3-16. This was mainly the result of high buyer demand
for certain assets in both our energy and industrial marketplaces.
Our results will also continue to be impacted by our investment in our
LiquidityOne transformation program and the implementation of our new
marketplace platform while we continue to support legacy systems
necessary for our current business. We anticipate completing the launch
of our first marketplace onto the new marketplace platform in Q4-16
followed by a tiered rollout of the remaining marketplaces over a 12
month timeline. Our costs during this transition process will be
elevated as we further allocate management time and resources to educate
employees and implement new ways of conducting our business. However, we
will emerge from this transformation as a much more scalable
organization with new capabilities focused on growth opportunities in
the global supply chain.
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 Q4-16:
| (i) |
increased investment spending under our LiquidityOne transformation initiative; |
|
| (ii) | increased cost of sales under our new DoD Surplus contract; | |
| (iii) |
steady results and year-over-year growth from our state and local government sector marketplace; |
|
| (iv) |
early signs of improved liquidity in our energy marketplace but continuing lower than average sales prices and margins; |
|
| (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 as a result of the disposition of the Jacobs Trading business; and |
|
| (vii) | soft commodity prices affecting our Scrap contract. | |
GMV – We expect GMV for Q4-16 to range from
$155 million to $170 million.
GAAP Net Income – We expect GAAP Net Income
for Q4-16 to range from negative $6.5 million to negative $3.5 million.
GAAP Diluted EPS – We expect GAAP diluted
earnings per share for Q4-16 to range from negative $0.20 to negative
$0.10.
Non-GAAP Adjusted EBITDA –We estimate
non-GAAP Adjusted EBITDA for Q4-16 to range from negative $4 million to
negative $1 million.
Non-GAAP Adjusted Diluted EPS – We estimate
non-GAAP Adjusted Earnings Per Diluted Share for Q4-16 to range from
negative $0.14 to negative $0.05. This guidance assumes that we have
diluted weighted average number of shares outstanding for the quarter of
30.7 million and that we will not repurchase shares with the
approximately $10.1 million available under the share repurchase program.
Our fourth quarter guidance adjusts non-GAAP EBITDA and non-GAAP Diluted
EPS for stock based compensation costs, which we estimate to be
approximately $3 million. These stock based compensation costs are
slightly higher than in the fourth quarter of fiscal year 2015.
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 |
Nine Months |
|||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (In thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Net (loss) income | $ | (124 | ) | $ | 1,615 | $ | (6,171 | ) | $ | (61,120 | ) | |||||
| Interest and other expense (income), net | 208 | 8 | (242 | ) | 85 | |||||||||||
| Benefit for income taxes | (17 | ) | (1,629 | ) | (2,438 | ) | (20,156 | ) | ||||||||
| Depreciation and amortization | 1,616 | 2,044 | 4,948 | 7,241 | ||||||||||||
| EBITDA | 1,683 | 2,038 | (3,903 | ) | (73,950 | ) | ||||||||||
| Stock compensation expense | 3,084 | 3,499 | 8,228 | 8,911 | ||||||||||||
|
Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets |
— | — | 39 | 96,238 | ||||||||||||
| Adjusted EBITDA | $ | 4,767 | $ | 5,537 | $ | 4,364 | $ | 31,199 | ||||||||
Adjusted Net Income and Adjusted Basic and Diluted
Earnings Per Share. Adjusted net income is a supplemental
non-GAAP financial measure and is equal to net income (loss) plus tax
effected stock compensation expense, amortization of contract-related
intangible assets associated with the Jacobs Trading acquisition,
acquisition costs including changes in earn out estimates, and
impairment of goodwill and long-lived assets. Adjusted basic and diluted
earnings per share are determined using Adjusted Net (Loss) Income. For
Q3-16, the tax rate used to tax effect stock compensation expense,
amortization of contract intangibles and acquisition costs is our
current tax rate of 28.3%.
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| (Unaudited) (Dollars in thousands, except per share data) | |||||||||||||||
| Net (loss) income | $ | (124 | ) | $ | 1,615 | $ | (6,171 | ) | $ | (61,120 | ) | ||||
| Stock compensation expense (net of tax) | 2,211 | 2,631 | 5,898 | 6,701 | |||||||||||
| Amortization of contract intangibles (net of tax) | — | — | — | 911 | |||||||||||
|
Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets (net of tax) |
— | — | 28 | 72,371 | |||||||||||
| Adjusted net income (loss) | $ | 2,087 | $ | 4,246 | $ | (245 | ) | $ | $18,863 | ||||||
| Adjusted basic earnings per common share | $ | 0.07 | $ | 0.14 | $ | (0.01 | ) | $ | $0.63 | ||||||
| Adjusted diluted earnings per common share | $ | 0.07 | $ | 0.14 | $ | (0.01 | ) | $ | $0.63 | ||||||
| Basic weighted average shares outstanding | 30,726,554 | 30,011,121 | 30,603,641 | 29,975,239 | |||||||||||
| Diluted weighted average shares outstanding | 30,726,554 | 30,011,121 | 30,603,641 | 29,975,239 | |||||||||||
Conference Call
The Company will host a conference call to discuss the third quarter of
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 51426155. 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 August 3, 2017 at 11:59 p.m. ET. An audio replay of the
teleconference will also be available until August 11, 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 51426155. 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, plans to increase investments in technology
infrastructure, the Company’s proprietary e-commerce marketplace
platform, product development and marketing initiatives, the LiquidityOne
transformation initiative, the supply and mix of inventory under the DoD
Surplus Contracts, expected future commodity prices, expected sales
prices and margins in the Company’s energy marketplaces, expected future
effective tax rates, expected future tax benefits as a result of the
sale of the Jacobs Trading business, and trends and assumptions about
future periods, including the third quarter FY-16. 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; and 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 | ||||||||
| Consolidated Balance Sheets | ||||||||
| (Dollars in Thousands) | ||||||||
| June 30, | September 30, | |||||||
| 2016 | 2015 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 129,865 | $ | 95,465 | ||||
|
Accounts receivable, net of allowance for doubtful accounts of $696 and $471 at June 30, 2016 and September 30, 2015, respectively |
8,965 | 6,194 | ||||||
| Inventory | 25,829 | 25,510 | ||||||
| Tax refund receivable | 1,409 | 33,491 | ||||||
| Prepaid and deferred taxes | 12,070 | 19,903 | ||||||
| Prepaid expenses and other current assets | 7,161 | 7,826 | ||||||
| Total current assets | 185,299 | 188,389 | ||||||
| Property and equipment, net | 14,098 | 13,356 | ||||||
| Intangible assets, net | 2,965 | 4,051 | ||||||
| Goodwill | 64,114 | 64,073 | ||||||
| Deferred long-term tax assets | 14,147 | 5,871 | ||||||
| Other assets | 15,334 | 12,748 | ||||||
| Total assets | $ | 295,957 | $ | 288,488 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 8,512 | $ | 9,500 | ||||
| Accrued expenses and other current liabilities | 35,354 | 27,350 | ||||||
| Profit-sharing distributions payable | 1,514 | 2,512 | ||||||
| Customer payables | 29,017 | 29,802 | ||||||
| Total current liabilities | 74,397 | 69,164 | ||||||
| Long-term liabilities | 3,479 | 3,322 | ||||||
| Total liabilities | 77,876 | 72,486 | ||||||
| Stockholders’ equity: | ||||||||
|
Common stock, $0.001 par value; 120,000,000 shares authorized; 30,726,554 shares issued and outstanding at June 30, 2016; 30,026,223 shares issued and outstanding at September 30, 2015 |
29 | 29 | ||||||
| Additional paid-in capital | 218,416 | 210,712 | ||||||
| Accumulated other comprehensive loss | (5,080 | ) | (5,626 | ) | ||||
| Retained earnings | 4,716 | 10,887 | ||||||
| Total stockholders’ equity | 218,081 | 216,002 | ||||||
| Total liabilities and stockholders’ equity | $ | 295,957 | $ | 288,488 | ||||
| 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, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenue | $ | 62,025 | $ | 70,060 | $ | 178,633 | $ | 251,509 | ||||||||
| Fee revenue | 23,163 | 19,686 | 59,308 | 66,323 | ||||||||||||
| Total revenue | 85,188 | 89,746 | 237,941 | 317,832 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of goods sold | 39,292 | 35,838 | 106,102 | 132,814 | ||||||||||||
| Profit-sharing distributions | 2,663 | 6,355 | 7,526 | 23,505 | ||||||||||||
| Technology and operations | 22,541 | 24,784 | 70,026 | 76,409 | ||||||||||||
| Sales and marketing | 9,967 | 10,255 | 28,575 | 31,438 | ||||||||||||
| General and administrative | 9,042 | 10,476 | 29,576 | 31,378 | ||||||||||||
| Depreciation and amortization | 1,616 | 2,044 | 4,948 | 7,241 | ||||||||||||
|
Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets |
— | — | 39 | 96,238 | ||||||||||||
| Total costs and expenses | 85,121 | 89,752 | 246,792 | 399,023 | ||||||||||||
| Income from operations | 67 | (6 | ) | (8,851 | ) | (81,191 | ) | |||||||||
| Interest and other (expense) income, net | (208 | ) | (8 | ) | 242 | (85 | ) | |||||||||
| (Loss) before provision for income taxes | (141 | ) | (14 | ) | (8,609 | ) | (81,276 | ) | ||||||||
| Benefit for income taxes | 17 | 1,629 | 2,438 | 20,156 | ||||||||||||
| Net (loss) income | $ | (124 | ) | $ | 1,615 | $ | (6,171 | ) | $ | (61,120 | ) | |||||
| Basic (loss) earnings per common share | $ | (0.00 | ) | $ | 0.05 | $ | (0.20 | ) | $ | (2.04 | ) | |||||
| Diluted (loss) earnings per common share | $ | (0.00 | ) | $ | 0.05 | $ | (0.20 | ) | $ | (2.04 | ) | |||||
| Basic weighted average shares outstanding | 30,726,554 | 30,011,121 | 30,603,641 | 29,975,239 | ||||||||||||
| Diluted weighted average shares outstanding | 30,726,554 | 30,011,121 | 30,603,641 | 29,975,239 | ||||||||||||
| Liquidity Services, Inc. and Subsidiaries | ||||||||||||||||
| Unaudited Consolidated Statements of Cash Flows | ||||||||||||||||
| (Dollars In Thousands) | ||||||||||||||||
|
|
||||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Operating activities | ||||||||||||||||
| Net (loss) income | $ | (124 | ) | $ | 1,615 | $ | (6,171 | ) | $ | (61,120 | ) | |||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||
| Depreciation and amortization | 1,616 | 2,044 | 4,948 | 7,241 | ||||||||||||
| Stock compensation expense | 3,084 | 3,499 | 8,228 | 8,911 | ||||||||||||
| Provision (benefit) for inventory allowance | 653 | (2,219 | ) | 2,052 | (4,682 | ) | ||||||||||
| Benefit for doubtful accounts | 140 | 149 | 226 | 1,354 | ||||||||||||
| Deferred tax benefit | (17 | ) | — | (2,438 | ) | (22,145 | ) | |||||||||
| Impairment of goodwill and long-lived assets | — | — | — | 96,238 | ||||||||||||
| Incremental tax (benefit) loss from exercise of common stock options | (75 | ) | 96 | 138 | 31 | |||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | (1,912 | ) | 4,336 | (2,997 | ) | 10,293 | ||||||||||
| Inventory | 5,704 | 13,242 | (2,371 | ) | 42,488 | |||||||||||
| Prepaid and deferred taxes | (703 | ) | (5,544 | ) | 33,938 | (4,380 | ) | |||||||||
| Prepaid expenses and other assets | (410 | ) | (920 | ) | (1,919 | ) | (738 | ) | ||||||||
| Accounts payable | (270 | ) | 1,431 | (988 | ) | 1,123 | ||||||||||
| Accrued expenses and other | 5,041 | (4,383 | ) | 7,907 | (20,773 | ) | ||||||||||
| Profit-sharing distributions payable | 10 | (2,339 | ) | (998 | ) | (2,054 | ) | |||||||||
| Customer payables | 1,255 | (12 | ) | (785 | ) | (10,861 | ) | |||||||||
| Other liabilities | (55 | ) | (394 | ) | (134 | ) | (1,381 | ) | ||||||||
| Net cash provided by operating activities | 13,937 | 10,601 | 38,636 | 39,545 | ||||||||||||
|
Investing activities |
||||||||||||||||
| Increase in intangibles and cash paid for acquisitions | (11 | ) | (3 | ) | (46 | ) | (12 | ) | ||||||||
| Purchases of property and equipment, including capitalized software | (1,864 | ) | (276 | ) | (4,587 | ) | (5,371 | ) | ||||||||
| Net cash used in investing activities | (1,875 | ) | (279 | ) | (4,633 | ) | (5,383 | ) | ||||||||
|
Financing activities |
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| Proceeds from exercise of common stock options (net of tax) | — | — | — | 107 | ||||||||||||
| Incremental tax benefit (loss) from exercise of common stock options | 75 | (96 | ) | (138 | ) | (31 | ) | |||||||||
| Net cash provided by (used in) financing activities | 75 | (96 | ) | (138 | ) | 76 | ||||||||||
| Effect of exchange rate differences | 200 | (269 | ) | 535 | (648 | ) | ||||||||||
| Net increase in cash and cash equivalents | 12,337 | 9,957 | 34,400 | 33,590 | ||||||||||||
| Cash and cash equivalents at beginning of the period | 117,528 | 86,231 | 95,465 | 62,598 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 129,865 | $ | 96,188 | $ | 129,865 | $ | 96,188 | ||||||||
|
Supplemental disclosure of cash flow information |
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| Cash paid (received) for income taxes, net | $ | 651 | $ | 3,916 | ($34,001 | ) | $ | 6,369 | ||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160804005411/en/
Source: Liquidity Services
Liquidity Services
Julie Davis
Senior Director, Investor
Relations
202-467-6868 ext. 2234
[email protected]
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