Press Releases
Aug 19

Liquidity Services, Inc. Announces Fourth Quarter and Fiscal Year 2008 Financial Results

– Fiscal year revenue of $263.9 million up 33% – Gross Merchandise Volume (GMV) of $359.7 million up 54% – Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $26.2 million up 29% –

WASHINGTON–(BUSINESS WIRE)–Liquidity Services, Inc. (NASDAQ:LQDT; www.liquidityservicesinc.com)
today reported its financial results for its fiscal year (FY-08) and
fourth quarter (Q4-08) ended September 30, 2008. Liquidity Services,
Inc. is a leading online auction marketplace for wholesale surplus and
salvage assets.

Liquidity Services, Inc. (LSI or the Company) reported record
consolidated FY-08 revenue of $263.9 million, a growth rate of
approximately 33% over the prior year. Adjusted EBITDA for FY-08 was a
record of $26.2 million, a growth rate of approximately 29% over the
prior year. FY-08 GMV, the total sales volume of all merchandise sold
through the Company’s marketplaces, was a record $359.7 million, a
growth rate of approximately 54% over the prior year.

The Company reported consolidated Q4-08 revenue of $70.4 million, a
growth rate of approximately 36% over the prior year’s comparable
period. Adjusted EBITDA for Q4-08 was $7.1 million, a growth rate of
approximately 22% over the prior year’s comparable period. GMV was $99.7
million for Q4-08, a growth rate of approximately 72% over the prior
year’s comparable period.

Net income in FY-08 was a record $11.6 million or $0.41 diluted earnings
per share. Adjusted net income in FY-08 was a record $14.2 million, a
growth rate of approximately 17% over the prior year, or $0.51 adjusted
diluted earnings per share, a growth rate of approximately 19% over the
prior year.

Net income in Q4-08 was $2.7 million or $0.10 diluted earnings per
share. Adjusted net income in Q4-08 was $3.4 million, or $0.12 adjusted
diluted earnings per share. Q4-08 net income and earnings per share were
lower than expected as a result of a significant increase in the
Company’s effective tax rate for the year to 42.5% from an expected 41%.
This impacted the tax provision for Q4-08 resulting in an effective tax
rate for the quarter of 46.8%. The increase in the Company’s effective
tax rate was the result of an increase in the blended effective tax rate
for the states in which the Company operates. Management expects the
Company to have a future effective tax rate of approximately 43%.

“Overall, LSI delivered strong results during Q4-08 capping another
record year for LSI as we grew GMV in all major areas of our business,”
said Bill Angrick, Chairman and CEO of LSI. “Despite a weakening
economy, LSI grew consolidated GMV by 54% over the prior year, or 28%
excluding our GovDeals and Geneva businesses, and generated cash from
operating activities of approximately $29.0 million during the year and
$12.4 million during the fourth quarter. Our surplus business GMV grew
approximately 24% over the prior year and our scrap business GMV grew
approximately 48% over the prior year. Our commercial business GMV grew
approximately 23% over the prior year driven by strong GMV growth in the
consignment model, which was up approximately 80% for the fourth
quarter, over the prior year comparable period, and 23% over the prior
year. Our GovDeals acquisition added $54.6 million in consignment GMV
for the last nine months of the year, significantly ahead of plan. Our
buyer marketplace continues to deliver strong results for our sellers as
we ended the year with over 999,000 registered buyers, which is up
approximately 46% over the prior year, including the addition of 51,000
new registered buyers in the fourth quarter.”

“Our increased diversification and financial strength will enable us to
take advantage of opportunities created by the current economic
recession and emerge as an even stronger player in the reverse supply
chain market,” said Mr. Angrick. “We plan to take the following key
actions during FY09 which we believe will build long term value for our
stockholders: (i) launch and grow our new surplus contract with the DoD,
(ii) improve operations and service levels in our commercial business
which did not meet our target profitability in FY08, (iii) make our
marketplaces more flexible and easier to use for sellers and buyers, and
(iv) expand and further segment our seller and buyer base to increase
their participation in our marketplace.”

Business Outlook

We are in a period of economic uncertainty and unprecedented market
volatility which makes it difficult for us to forecast business trends,
resulting in a wider than usual guidance range. In the short term, we
believe changes in consumer spending patterns may impact the overall
supply of goods in the reverse supply chain and the volume 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 marketplace, (ii) as corporations and
public sector agencies are focused on reducing costs and improving
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 we expect our
competitive position to strengthen.

.bwcellpaddingbottom1 {padding-bottom: 2.0px; font: 100% arial }
.bwcellpaddingbottom3 {padding-bottom: 4.0px; font: 100% arial }
.bwcellpaddingleft0 {padding-left: 0.0px; font: 100% arial }
.bwcellpaddingleft3 {padding-left: 15.0px; font: 100% arial }
.bwcellpaddingleft5 {padding-left: 25.0px; font: 100% arial }
.bwcellpaddingright0 {padding-right: 0.0px; font: 100% arial }
.bwcellparagraphmargin {margin-bottom: 0px; margin-top: 0px; font: 100% arial }
.bwdoublebottomborder {border-bottom: double black 2.25pt; font: 100% arial }
.bwsinglebottomborder {border-bottom: solid black 1.0pt; font: 100% arial }
.bwtablebottommargin {margin-bottom: 10.0px; font: 100% arial }
.bwtextaligncenter {text-align: center; font: 100% arial }
.bwtextalignleft {text-align: left; font: 100% arial }
.bwtextalignright {text-align: right; font: 100% arial }
.bwunderlinestyle {text-decoration: underline; font: 100% arial }
.bwverticalalignbottom {vertical-align: bottom; font: 100% arial }
.bwverticalaligntop {vertical-align: top; font: 100% arial }
.bwwhitespacenowrap {white-space: nowrap; font: 100% arial }

The following forward looking statements reflect the following trends
and assumptions for FY 2009:

(i)

 

lower commodity prices which will reduce the GMV and profit
realized in our scrap business;

(ii)

new business rules under our new DoD Surplus Contract which will
remove selected items from the product pool that we historically
handled and sold, resulting in lower GMV in our surplus business;

(iii)

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;

(iv)

the continued sale throughout FY2009 of property received, prior
to December 18, 2008, under our current Surplus Contract;

(v)

improved operations and service levels in our commercial business
which will improve margins during FY2009.

Our results may be materially affected by changes in business trends and
our operating environment, as well as by other factors, including
investments we expect to make in our 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 are eligible to
receive this incentive in each year of the term of the Scrap contract
and have assumed for purposes of providing guidance regarding our
projected financial results for fiscal year 2009 that we will again
receive this incentive payment.

Our guidance adjusts EBITDA and Diluted EPS for the effects of FAS
123(R), which we estimate to be approximately $1.6 million to $1.8
million per quarter for fiscal year 2009.

GMV – We expect GMV for fiscal
year 2009 to range from $400 million to $420 million. We expect GMV for
Q1-09 to range from $80 million to $84 million.

Adjusted EBITDA – We expect
Adjusted EBITDA for fiscal year 2009 to range from $22 million to $26
million. We expect Adjusted EBITDA for Q1-09 to range from $3.0 million
to $4.0 million.

Adjusted Diluted EPS – We estimate
Adjusted Earnings Per Diluted Share for fiscal year 2009 to range from
$0.45 to $0.47. In Q1-09, we estimate Adjusted Earnings Per Diluted
Share to be $0.06 to $0.07. This guidance does not reflect the impact of
the stock repurchase program described below.

On December 2, 2008, LSI’s board of directors approved a stock
repurchase program. Under the program, the Company is authorized to
repurchase up to $10 million of the issued and outstanding shares of its
common stock. Share repurchases may be made through open market
purchases, privately negotiated transactions or otherwise, at times and
in such amounts as management deems appropriate. We expect to commence
the repurchase program during calendar year 2009. The timing and actual
number of shares repurchased will depend on a variety of factors
including price, corporate and regulatory requirements and other market
conditions. The repurchase program may be discontinued or suspended at
any time, and will be funded using the Company’s available cash.

Key FY-08 and Q4-08 Operating Metrics

Registered Buyers — At the end of
FY-08, registered buyers totaled approximately 999,000, representing a
46% increase over the approximately 685,000 registered buyers at the end
of FY-07.

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 1,751,000 in FY-08, an approximately
57% increase over the approximately 1,115,000 auction participants in
FY-07. Auction participants increased to approximately 467,000 in Q4-08,
an approximately 59% increase over the approximately 293,000 auction
participants in Q4-07.

Completed Transactions — Completed
transactions increased to approximately 372,000, an approximately 76%
increase for FY-08 from the approximately 212,000 completed transactions
in FY-07. Completed transactions increased to approximately 109,000, an
approximately 95% increase for Q4-08 from the approximately 56,000
completed transactions in Q4-07.

GMV and Revenue Mix — GMV and
revenue continue to diversify due to the continued growth in our scrap
businesses and the addition of GovDeals. As a result, the percentage of
GMV and revenue derived from the DoD Surplus Contract (under which our
revenue is based on the profit-sharing model) during FY-08 decreased to
23.0% and 31.3%, respectively, compared to 28.8% and 33.9%,
respectively, in the prior year period. The table below summarizes GMV
and revenue by pricing model.

 

GMV Mix

               
FY-08   FY-07

 

Q4-08  

Q4-07

Profit-Sharing Model:      
Surplus 23.0% 28.8% 22.8% 30.6%
Scrap 22.8%   23.5%

 

20.9%  

22.8%

Total Profit Sharing

45.8%

52.3%

43.7%

53.4%
 
Consignment Model:
GovDeals 15.2% 17.9%

Commercial

17.9%

  22.4%  

18.0%   17.2%
Total Consignment 33.1% 22.4% 35.9% 17.2%
 
Purchase Model 17.3% 21.6% 14.2% 26.3%
International and Other 3.8%   3.7%   6.2%   3.1%
Total 100.0%   100.0%

 

100.0%  

100.0%

 

Revenue Mix

             
FY-08   FY-07   Q4-08

 

Q4-07
Profit-Sharing Model:
Surplus 31.3% 33.9% 32.2% 34.4%
Scrap 31.1%   27.6%

 

29.6%  

25.7%

Total Profit Sharing

62.4%

61.5%

61.8%

60.1%
 
Consignment Model:
GovDeals 1.5% 2.0%

Commercial

6.1%

  7.3%  

6.2%   5.3%
Total Consignment 7.6% 7.3% 8.2% 5.3%
 
Purchase Model 23.5% 25.4% 20.2% 29.5%
International and Other 6.5%   5.8%   9.8%   5.1%
Total 100.0%   100.0%

 

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 plus (a) interest expense (income) and other income, net;
(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

Twelve Months

Ended September 30, Ended September 30,
2008

2007 2008 2007
(In thousands)

(Unaudited)

(Audited)

Net income $ 2,697 $ 3,180 $11,553 $11,019
Interest expense (income) and other income, net (93 ) (552 ) (1,495 ) (2,176 )
Provision for income taxes 2,369 2,038 8,546 7,460
Amortization of contract intangibles 203 203 813 813
Depreciation and amortization 647 366 2,083 1,302
 
EBITDA 5,823 5,235 21,500 18,418
Stock compensation expense 1,234 535 4,674 1,943

 

Adjusted EBITDA $7,057 $5,770 $26,174 $20,361
 

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

Twelve Months Ended
September 30, September 30,
2008 2007 2008 2007
(Dollars in thousands, except per share data)

(Unaudited)

(Audited)

Net income $ 2,697 $ 3,180 $ 11,553 $ 11,019
Stock compensation expense (net of tax)   657   319   2,687

 

1,158
 
Adjusted net income $ 3,354 $ 3,499 $ 14,240 $ 12,177
 
Adjusted basic earnings per common share $ 0.12 $ 0.13 $ 0.51 $ 0.44

 

Adjusted diluted earnings per common share $ 0.12 $ 0.12 $ 0.51 $ 0.43
 
Basic weighted average shares outstanding  

27,998,413   27,911,902  

27,964,748

  27,768,679

 

Diluted weighted average shares outstanding   28,001,549

 

28,013,199  

28,151,878   28,146,923
 

Conference Call

The Company will host a conference call to discuss the fiscal 2008 and
fourth quarter 2008 results at 5 p.m. Eastern Time today. Investors and
other interested parties may access the teleconference by dialing
800-638-4817 or 617-614-3943 and providing the participant pass code
42369422. 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
31 calendar days ending January 4, 2009 at 11:59 p.m. ET. An audio
replay of the teleconference will also be available until January 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 41872982. Both replays will be
available starting at 7:00 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 and 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; the impact on
our operating results of terms in the new Surplus Contract, that will
commence on December 18, 2008, that are different from the terms in our
current Surplus Contract; our ability to attract and retain active
professional buyers to purchase this merchandise; and our ability to
successfully complete the integration of GovDeals and Geneva 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)

 

September 30,

2008

2007
Assets
Current assets:
Cash and cash equivalents $ 51,954 $ 39,954
Short-term investments 11,244 21,655
Accounts receivable, net of allowance for doubtful accounts of $519
and $371 in 2008 and 2007, respectively
4,658 5,098
Inventory 13,327 16,467
Prepaid expenses, deferred taxes and other current assets  

7,653

  5,486
Total current assets 88,836 88,660
Property and equipment, net 4,730 4,202
Intangible assets, net 5,561 4,568
Goodwill 34,696 11,446
Other assets  

3,344   2,266
Total assets $ 137,167 $ 111,142
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 8,303

$

3,333
Accrued expenses and other current liabilities 10,314 10,299
Profit-sharing distributions payable 10,312 6,919
Customer payables 8,841 6,329
Current portion of long-term debt and capital lease obligations   22   18
Total current liabilities 37,792 26,898
Long-term debt and capital lease obligations, net of current portion 44 34
Deferred taxes and other long-term liabilities  

2,961

  2,176
Total liabilities 40,797 29,108
Stockholders’ equity:
Common stock, $0.001 par value; 120,000,000 shares authorized;
28,023,361 and 27,939,059 shares issued and outstanding at September
30, 2008 and 2007, respectively
28 28
Additional paid-in capital 65,973 60,820
Accumulated other comprehensive income (1,717 ) 653
Retained earnings   32,086   20,533
Total stockholders’ equity   96,370  

82,034

Total liabilities and stockholders’ equity $ 137,167

$

111,142
 
   
Liquidity Services, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in Thousands, Except Share and Per Share Data)
 
Three Months Ended Twelve Months Ended
September 30,

September 30,

2008

 

2007

2008

  2007

(Unaudited)

(Audited)

Revenue $ 70,362 $ 51,668 $ 263,941 $ 198,620
Costs and expenses:

Cost of goods sold (excluding amortization)

20,186 13,751 71,303 47,043
Profit-sharing distributions 23,469 15,460 91,106 69,638

Technology and operations

10,824 9,052 41,512 33,417
Sales and marketing 4,478 3,458 16,997 13,203

General and administrative

5,582 4,712 21,523 16,901
Amortization of contract intangibles 203 203 813 813

Depreciation and amortization

  647   366   2,083   1,302
 
Total costs and expenses   65,389   47,002   245,337   182,317
 
Income from operations 4,973 4,666 18,604 16,303
Interest income (expense) and other income, net  

93

 

552   1,495   2,176

 

Income before provision for income taxes 5,066 5,218 20,099 18,479
Provision for income taxes  

(2,369

)   (2,038 )  

(8,546 )

 

(7,460 )
 
Net income $ 2,697 $ 3,180 $ 11,553 $ 11,019
 
Basic earnings per common share $ 0.10 $ 0.11 $ 0.41 $ 0.40
 
Diluted earnings per common share $ 0.10 $ 0.11 $ 0.41 $ 0.39

 

Basic weighted average shares outstanding   27,998,413   27,911,902   27,964,748   27,768,679
 
Diluted weighted average shares outstanding   28,001,549   28,013,199   28,151,878   28,146,923
 
   

Liquidity Services, Inc. and Subsidiaries

Consolidated Statements of Cash Flows
(In Thousands)
 
Three Months Ended

Twelve Months Ended

September 30, September 30,
2008

 

  2007     2008

    2007

Operating activities

(Unaudited)

(Audited)

Net income $ 2,697  

$ 3,180 $ 11,553

 

$ 11,019
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 850 569 2,895 2,115
Stock compensation expense 1,234 535 4,674 1,943
Provision (benefit) for doubtful accounts (672 ) 171 (736 ) 171
Deferred tax benefit (1,305 ) (2,296 ) (1,305 ) (2,296 )
Loss on disposal of property and equipment 85 85
Changes in operating assets and liabilities:
Accounts receivable 261 (1,569 ) 2,107 (3,087 )
Inventory 3,311 (2,165 ) 4,615 (9,986 )
Prepaid expenses and other assets 1,571 (1,311 ) (405 ) (3,849 )
Accounts payable (598 ) 1,014 2,602 1,260
Accrued expenses and other 2,506 2,882 (2,030 ) 4,984
Profit-sharing distributions payable 2,297 703 3,393 (816 )
Customer payables 1,154 1,161 2,512 (405 )
Other liabilities   (892

)

  2,275   (884 )  

3,336

 

Net cash provided by operating activities

12,414 5,234 28,991 4,474
Investing activities
Purchases of short-term investments (10,874 ) (7,505 ) (36,180 ) (36,099 )
Proceeds from the sale of short-term investments 357 4,921 46,400 26,809
Increase in goodwill and intangibles 10 (220 ) (31 ) (208 )
Cash paid for acquisitions (6 ) 376 (25,633 ) (9,856 )
Purchases of property and equipment   (427

)

  (405 )  

(1,669

)   (2,688 )
 
Net cash (used in) provided by investing activities (10,940 ) (2,833 ) (17,113 ) (22,042 )
Financing activities
Proceeds from issuance of debt 10
Repayments of debt (14 ) (42 ) (16 )
Principal repayments of capital lease obligations (5 ) 7 (9 ) (65 )
Proceeds from exercise of common stock options and warrants (net of
tax)
237 289 345 1,037
Incremental tax benefit from exercise of common stock options 115 26 133 807
Net proceeds from the issuance of common stock  

 

25     1,070

 

Net cash provided by financing activities 347 333 427 2,843
Effect of exchange rate differences on cash and cash equivalents  

(489

)   117  

(305 )

 

320
 
Net increase (decrease) in cash and cash equivalents 1,332 2,851 12,000 (14,405 )
Cash and cash equivalents at beginning of the period   50,622   37,103   39,954   54,359
 
Cash and cash equivalents at end of period $ 51,954 $ 39,954 $ 51,954 $ 39,954
Supplemental disclosure of cash flow information
Property and equipment acquired through capital leases $ 65 $ 10 $ 65 $ 10
Cash paid for income taxes

2,276

2,317

11,656

7,901

Cash paid for interest 3 1 23 5
 

Contacts

Liquidity Services, Inc.
Julie Davis
Director, Investor
Relations
202-467-6868 ext. 2234
julie.davis@liquidityservicesinc.com