Liquidity Services, Inc. Announces Second Quarter Fiscal Year 2012 Financial Results

– Second quarter record revenue of $125.7 million up 41% – Record
Gross Merchandise Volume (GMV) of $218.4 million up 59% – Record
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) of $30.9 million up 120% – Record Adjusted EPS of $0.52 up 136%

WASHINGTON–(BUSINESS WIRE)–May. 3, 2012–
Liquidity Services, Inc. (NASDAQ: LQDT; www.liquidityservicesinc.com)
today reported its financial results for its second quarter of fiscal
year 2012 (Q2-12) ended March 31, 2012. Liquidity Services, Inc.
provides business and government clients and buying customers
transparent, innovative and effective online marketplaces and integrated
services for surplus assets.

Liquidity Services, Inc. (LSI or the Company) reported consolidated
Q2-12 record revenue of $125.7 million, an increase of approximately 41%
from the prior year’s comparable period. Adjusted EBITDA, which excludes
stock based compensation and acquisition costs (including changes in
earn out estimates), for Q2-12 was a record $30.9 million, an increase
of approximately 120% from the prior year’s comparable period. Q2-12
GMV, the total sales volume of all merchandise sold through the
Company’s marketplaces, was a record $218.4 million, an increase of
approximately 59% from the prior year’s comparable period. Fiscal 2012
results include the operations of Jacobs Trading, which the Company
acquired on October 1, 2011.

Net income in Q2-12 was $18.8 million or $0.57 diluted earnings per
share. Adjusted net income, which excludes stock based compensation,
acquisition costs (including changes in earn out estimates) and
amortization of contract-related intangible assets associated with the
Jacobs Trading acquisition – net of tax, in Q2-12 was a record $17.2
million or a record $0.52 diluted earnings per share based on 32.8
million fully diluted shares outstanding, increases of approximately
176% and 136%, respectively, from the prior year’s comparable period.

LSI has a $7.0 million credit, or income, in the Acquisition Costs line
item of its Statement of Operations, as a result of reducing the
estimate of the fair value of the earn out of its TruckCenter.com
acquisition from $7.0 million (recorded at the acquisition), to zero as
of March 31, 2012. Upon review of the estimate as of March 31, 2012, LSI
determined that the operating results of TruckCenter.com are unlikely to
achieve the $7.0 million earn out payment based on the last 11 months of
operating history and estimates for the next 13 months. Therefore, based
upon revised projections, the Company reversed the earn out liability.
The change in estimate does not affect the Company’s effective income
tax rate.

Q2-12 operating cash flow was $26.4 million, an increase of
approximately 178% from the prior year’s comparable period.

“LSI reported record results for GMV, Adjusted EBITDA and Adjusted EPS
in Q2-12 all of which exceeded our guidance range. Record GMV results
were primarily driven by growth in the volume of goods sold in our
retail supply chain and municipal government marketplaces by existing
and new clients. Our team did an excellent job handling the increased
volumes while maintaining a high level of service and quality to our
clients and buying customers. Our consistent execution has enabled
Liquidity Services to become the trusted provider of choice in our
industry with over 50 Fortune 500 corporations, over 4,500 federal,
state and local government agencies and over 1.7 million registered
buyers utilizing our marketplaces. Our progress has generated strong
financial results for our shareholders, exemplified by our adjusted
EBITDA of $81.2 million and operating cash flow of $62.2 million over
the last 12 months. By continuing to invest in growing our e-commerce
business we intend to capture a significant share of large, highly
fragmented markets, both in the commercial and public sector, while
having a positive impact on our clients financial and environmental
sustainability initiatives,” said Bill Angrick, Chairman and CEO of LSI.

Business Outlook

While economic conditions have improved, our overall outlook remains
cautious due to the volatility in the macro environment and its
potential impact on the retail supply chain and GDP growth.
Additionally, during fiscal year 2012 we expect to fund major upgrades
in our technology infrastructure to support further integration of our
existing businesses and online marketplaces, including the integration
of Truckcenter.com and Jacobs Trading. In the longer term, we expect our
business to continue to benefit from the following trends: (i) as
consumers trade down and seek greater value, we anticipate stronger
buyer demand for the surplus merchandise sold in our marketplaces, (ii)
as corporations and public sector agencies focus on reducing costs,
improving transparency and working capital flows by outsourcing reverse
supply chain activities, we expect our seller base to increase, and
(iii) as corporations and public sector agencies increasingly prefer
service providers with a proven track record, innovative technology
solutions and demonstrated financial strength, we expect our seller base
to increase. We continue to implement the Jacobs Trading acquisition
according to our original plan. The network effect of the integration is
creating efficiencies for our selling and buying customers. These
efficiencies continue to bring new sellers into our marketplace and have
enabled us to increase our operating performance creating margin
improvements as we scale our commercial business. As we improve
operating efficiencies and service levels, we expect our competitive
position to strengthen.

The following forward looking statements reflect trends and assumptions
for the next quarter and FY 2012:

			(i)				stable commodity prices in our scrap business;
			(ii)				stable average sales prices realized in our capital assets marketplaces;
			(iii)				an effective income tax rate of 40%; and
			(iv)				improved operations and service levels in our retail goods marketplaces.

Our results may also be materially affected by changes in business
trends and our operating environment, and by other factors, such as: (i)
investments in infrastructure and value-added services to support new
business in both commercial and public sector markets; and (ii) pricing
pressure from buyers in selected categories of our retail goods
marketplaces, which can result in lower than optimal margins.

Our Scrap Contract with the Department of Defense (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 30^th
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 the
next quarter and fiscal year 2012 that we will again receive this
incentive payment.

GMV – We expect GMV for fiscal year 2012 to
range from $760 million to $800 million, which is an increase from our
previous guidance range of $700 million to $740 million. We expect GMV
for Q3-12 to range from $205 million to $215 million.

Adjusted EBITDA – We expect Adjusted EBITDA
for fiscal year 2012 to range from $96 million to $100 million, which is
an increase from our previous guidance range of $83 million to $87
million. We expect Adjusted EBITDA for Q3-12 to range from $26.0 million
to $28.0 million.

Adjusted Diluted EPS – We estimate Adjusted
Earnings Per Diluted Share for fiscal year 2012 to range from $1.64 to
$1.70, which is an increase from our previous guidance range of $1.32 to
$1.38. In Q3-12, we estimate Adjusted Earnings Per Diluted Share to be
$0.43 to $0.46. This guidance assumes that we have an average fully
diluted number of shares outstanding for the year of 33.2 million, and
that we will not repurchase shares with the approximately $18.1 million
yet to be expended under the share repurchase program.

Our guidance adjusts EBITDA and Diluted EPS for (i) acquisition costs
including transaction costs and changes in earn out estimates; (ii)
amortization of contract intangible assets of $33.3 million from our
acquisition of Jacobs Trading; and (iii) for stock based compensation
costs, which we estimate to be approximately $2.3 million to $2.5
million per quarter for the remaining two quarters of fiscal year 2012.
These stock based compensation costs are consistent with fiscal year
2011.

Key Q2-12 Operating Metrics

Registered Buyers — At the end of Q2-12,
registered buyers totaled approximately 1,711,000, representing a 13%
increase over the approximately 1,508,000 registered buyers at the end
of Q2-11.

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 564,000 in Q2-12, an approximately 3%
increase over the approximately 546,000 auction participants in Q2-11.

Completed Transactions — Completed
transactions decreased to approximately 128,000, an approximately 3%
decrease for Q2-12 from the approximately 132,000 completed transactions
in Q2-11, as a result of an increase in average transaction size of
approximately 64% from $1,041 in Q2-11 to $1,703 in Q2-12 due to our
lotting and merchandising strategies.

GMV and Revenue Mix — GMV continues to
diversify due to the continued growth in our U.S. commercial business
and state and local government business (the GovDeals.com marketplace).
As a result, the percentage of GMV derived from our DoD Contracts during
Q2-12 decreased to 24.3% compared to 35.2% in the prior year period. The
table below summarizes GMV and revenue by pricing model. The purchase
model revenue mix has increased, as a result of the Jacobs Trading
acquisition.

GMV Mix
				Q2-12					Q2-11
Profit-Sharing Model:
Scrap Contract				8.8	%				14.9	%
Total Profit Sharing				8.8	%				14.9	%
Consignment Model:
GovDeals				16.9	%				18.9	%
Commercial – US				31.8	%				18.7	%
Total Consignment				48.7	%				37.6	%
Purchase Model:
Commercial – US				27.0	%				25.2	%
Surplus Contract				15.5	%				20.3	%
Total Purchase				42.5	%				45.5	%
Other				—					2.0	%
Total				100.0	%				100.0	%
Revenue Mix
				Q2-12					Q2-11
Profit-Sharing Model:
Scrap Contract				15.3	%				22.3	%
Total Profit Sharing				15.3	%				22.3	%
Consignment Model:
GovDeals				2.6	%				2.6	%
Commercial – US				8.2	%				4.3	%
Total Consignment				10.8	%				6.9	%
Purchase Model:
Commercial – US				47.5	%				37.6	%
Surplus Contract				26.4	%				30.2	%
Total Purchase				73.9	%				67.8	%
Other				—					3.0	%
Total				100.0	%				100.0	%

Liquidity Services, Inc.

Reconciliation of GAAP to Non-GAAP Measures

EBITDA and Adjusted EBITDA. EBITDA
is a supplemental non-GAAP financial measure and is equal to net income
plus interest expense and other expense, net; provision for income
taxes; amortization of contract intangibles; and depreciation and
amortization. Our definition of Adjusted EBITDA differs from EBITDA
because we further adjust EBITDA for stock based compensation expense,
and acquisition costs (including changes in earn out estimates).
Adjusted EBITDA for the three and six months ended March 31, 2011
includes the operating losses generated by our UK operations, which were
closed down as of September 30, 2011.

				Three Months										Six Months
				Ended March 31,										Ended March 31,
				2012					2011					2012						2011
				(in thousands) (unaudited)
Net income				$ 18,762					$	5,059				$	27,888					$	6,442
Interest expense and other expense, net				583						34					1,108						55
Provision for income taxes				12,508						5,059					19,116						6,442
Amortization of contract intangibles				2,020						204					4,039						407
Depreciation and amortization				1,505						1,351					3,031						2,541
EBITDA				35,378						11,707					55,182						15,887
Stock compensation expense				2,493						2,312					5,118						4,528
Acquisition costs				(6,989	)					—					(6,671	)					4,695
Adjusted EBITDA				$30,882					$	14,019				$	53,629					$	25,110

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, amortization of contract-related intangible
assets associated with the Jacobs Trading acquisition and acquisition
costs (including changes in earn out estimates). Adjusted basic and
diluted earnings per share are determined using Adjusted Net Income.
Adjusted net income for the three and six months ended December 31, 2011
includes the operating losses generated by our UK operations, which were
closed down as of September 30, 2011.

				Three Months Ended March 31,											Six Months Ended March 31,
				2012						2011					2012						2011
				(Unaudited) (Dollars in thousands, except per share data)
Net income				$	18,762					$	5,059				$	27,888					$	6,442
Stock compensation expense (net of tax)					1,496						1,156					3,037						2,264
Amortization of contract intangibles (net of tax)					1,090						—					2,155						—
Acquisition costs (net of tax)					(4,193	)					—					(3,958	)					2,348
Adjusted net income				$	17,155					$	6,215				$	29,122					$	11,054
Adjusted basic earnings per common share				$	0.56					$	0.23				$	0.95					$	0.41
Adjusted diluted earnings per common share				$	0.52					$	0.22				$	0.89					$	0.39
Basic weighted average shares outstanding					30,840,322						27,298,989					30,616,816						27,253,138
Diluted weighted average shares outstanding					32,778,428						28,068,461					32,580,473						28,179,741

Conference Call

The Company will host a conference call to discuss the fiscal second
quarter 2012 results at 10:30 a.m. Eastern Time today. Investors and
other interested parties may access the teleconference by dialing
800-901-5218 or 617-786-4511 and providing the participant pass code
79423024. A live web cast of the conference call will be provided on the
Company’s investor relations website at http://www.liquidityservicesinc.com.
A replay of the web cast will be available on the Company’s website for
30 calendar days ending June 2, 2012 at 11:59 p.m. ET. An audio replay
of the teleconference will also be available until June 2, 2012 at 11:59
p.m. ET. To listen to the replay, dial 888-286-8010 or 617-801-6888 and
provide pass code 75018712. Both replays will be available starting at
12:30 p.m. today.

Non-GAAP Measures

To supplement our consolidated financial statements presented in
accordance with GAAP, we use certain non-GAAP measures of certain
components of financial performance. These non-GAAP measures include
earnings before interest, taxes, depreciation and amortization (EBITDA),
Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share.
These non-GAAP measures are provided to enhance investors’ overall
understanding of our current financial performance and prospects for the
future. We use EBITDA and Adjusted EBITDA: (a) as measurements of
operating performance because they assist us in comparing our operating
performance on a consistent basis as they do not reflect the impact of
items not directly resulting from our core operations; (b) for planning
purposes, including the preparation of our internal annual operating
budget; (c) to allocate resources to enhance the financial performance
of our business; (d) to evaluate the effectiveness of our operational
strategies; and (e) to evaluate our capacity to fund capital
expenditures and expand our business.

We believe these non-GAAP measures provide useful information to both
management and investors by excluding certain expenses that may not be
indicative of our core operating measures. In addition, because we have
historically reported certain non-GAAP measures to investors, we believe
the inclusion of non-GAAP measures provides consistency in our financial
reporting. These measures should be considered in addition to financial
information prepared in accordance with generally accepted accounting
principles, but should not be considered a substitute for, or superior
to, GAAP results. A reconciliation of all 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 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 and expected future effective tax rates. 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 and Walmart 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, including Jacobs Trading and Truckcenter.com,
into our existing operations; and our ability to recognize any expected
tax benefits as a result of closing our U.K. 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

Liquidity Services, Inc. (NASDAQ:LQDT) and its subsidiaries enable
retailers, industrial corporations and government agencies to market and
sell surplus assets quickly and conveniently using online marketplaces
and value-added services. The Company, a member of the S&P SmallCap 600
Index, operates multiple global e-commerce marketplaces for surplus and
salvage assets across the retail supply chain (Liquidation.com),
government (GovLiquidation.com, GovDeals.com) and industrial capital
assets (NetworkIntl.com) sectors. Liquidity Services is based in
Washington, D.C. and has approximately 760 employees. Additional
information can be found at: www.liquidityservicesinc.com.

Liquidity Services, Inc. and Subsidiaries
Consolidated Balance Sheets
(Dollars in Thousands)
				March 31,					September 30,
				2012					2011
Assets				(Unaudited)
Current assets:
Cash and cash equivalents				$	104,756				$	128,984
Accounts receivable, net of allowance for doubtful accounts of $897 and $514 at March 31, 2012 and September 30, 2011, respectively					11,508					6,049
Inventory					23,639					15,065
Prepaid and deferred taxes					10,071					16,073
Prepaid expenses and other current assets					5,067					4,805
Current assets of discontinued operations					84					277
Total current assets					155,125					171,253
Property and equipment, net					7,558					7,042
Intangible assets, net					34,062					2,993
Goodwill					150,766					40,549
Other assets					5,954					5,970
Total assets				$	353,465				$	227,807
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable				$	15,586				$	8,590
Accrued expenses and other current liabilities					26,481					23,411
Profit-sharing distributions payable					6,117					7,267
Current portion of acquisition earn out payables					8,227					5,410
Customer payables					14,954					12,728
Current portion of note payable					9,000					—
Current liabilities of discontinued operations					616					2,160
Total current liabilities					80,981					59,566
Acquisition earn out payables					—					4,741
Note payable, net of current portion					32,000					—
Deferred taxes and other long-term liabilities					2,254					2,087
Total liabilities					115,235					66,394
Stockholders’ equity:
Common stock, $0.001 par value; 120,000,000 shares authorized; 31,081,192 shares issued and outstanding at March 31, 2012; 31,192,608 shares issued and 29,030,552 shares outstanding at September 30, 2011					30					29
Additional paid-in capital					151,947					124,886
Treasury stock, at cost					—					(21,884	)
Accumulated other comprehensive income					35					52
Retained earnings					86,218					58,330
Total stockholders’ equity					238,230					161,413
Total liabilities and stockholders’ equity				$	353,465				$	227,807

Liquidity Services, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in Thousands, Except Share and Per Share Data)
				Three Months Ended March 31,												Six Months Ended March 31,
				2012						2011						2012						2011
Revenue				$	112,165					$	83,097					$	208,389					$	151,677
Fee revenue					13,559						6,316						23,366						13,186
Total revenue from continuing operations					125,724						89,413						231,755						164,863
Costs and expenses from continuing operations:
Cost of goods sold (excluding amortization)					55,024						38,334						98,310						69,188
Profit-sharing distributions					11,385						11,879						23,872						22,205
Technology and operations					15,802						13,581						31,585						26,072
Sales and marketing					6,909						5,948						13,445						11,715
General and administrative					8,215						6,785						16,032						13,080
Amortization of contract intangibles					2,020						204						4,039						407
Depreciation and amortization					1,505						1,195						3,031						2,241
Acquisition costs					(6,989	)					—						(6,671	)					4,695
Total costs and expenses					93,871						77,926						183,643						149,603
Income from continuing operations					31,853						11,487						48,112						15,260
Interest expense and other expense, net					(583	)					(270	)					(1,108	)					(513	)
Income before provision for income taxes from continuing operations					31,270						11,217						47,004						14,747
Provision for income taxes					(12,508	)					(5,059	)					(19,116	)					(6,442	)
Income from continuing operations					18,762						6,158						27,888						8,305
Loss from discontinued operations, net of tax					—						(1,099	)					—						(1,863	)
Net income				$	18,762					$	5,059					$	27,888					$	6,442
Basic earnings (loss) per common share:
From continuing operations				$	0.61					$	0.23					$	0.91					$	0.31
From discontinued operations					—						(0.04	)					—						(0.07	)
Basic earnings per common share				$	0.61					$	0.19					$	0.91					$	0.24
Diluted earnings (loss) per common share:
From continuing operations				$	0.57					$	0.22					$	0.85					$	0.30
From discontinued operations					—						(0.04	)					—						(0.07	)
Diluted earnings per common share				$	0.57					$	0.18					$	0.85					$	0.23
Basic weighted average shares outstanding					30,840,322						27,298,989						30,616,816						27,253,138
Diluted weighted average shares outstanding					32,778,428						28,068,461						32,580,473						28,179,741

Liquidity Services, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In Thousands)
					Three Months Ended March 31,												Six Months Ended March 31,
					2012						2011						2012						2011
Operating activities
Net income					$	18,762					$	5,059					$	27,888					$	6,442
Less: discontinued operations, net of tax						—						(1,099	)					—						(1,863	)
Income from continuing operations						18,762						6,158						27,888						8,305
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Depreciation and amortization						3,524						1,398						7,070						2,647
Stock compensation expense						2,493						2,312						5,118						4,528
Provision (benefit) for inventory allowance						7						122						(40	)					(45	)
Provision (benefit) for doubtful accounts						82						66						(129	)					97
Incremental tax benefit from exercise of common stock options						(4,449	)					(230	)					(9,338	)					(1,495	)
Changes in operating assets and liabilities:
Accounts receivable						(2,311	)					(2,465	)					(620	)					(2,782	)
Inventory						766						(728	)					(2,475	)					(2,029	)
Prepaid expenses and other assets						6,385						(449	)					13,160						409
Accounts payable						6,435						(1,064	)					3,807						(1,217	)
Accrued expenses and other						7,495						860						3,023						(3,120	)
Profit-sharing distributions payable						(191	)					3,736						(1,150	)					4,511
Customer payables						(1,856	)					2,275						2,226						4,966
Acquisition earn out payables						(10,109	)					(2,500	)					(10,109	)					2,195
Other liabilities						(544	)					(58	)					167						(125	)
Net cash provided by operating activities from continuing operations						26,489						9,433						38,598						16,845
Net cash (used in) provided by activities from discontinuing operations						(109	)					57						(29	)					(574	)
Net cash provided by operating activities						26,380						9,490						38,569						16,271
Investing activities
Purchases of short-term investments						—						(1,731	)					—						(7,862	)
Proceeds from the sale of short-term investments						—						21,950						—						28,525
Increase in goodwill and intangibles and cash paid for acquisitions						(22	)					(8	)					(80,040	)					(29	)
Purchases of property and equipment						(883	)					(971	)					(2,059	)					(2,973	)
Net cash (used in) provided by investing activities						(905	)					19,240						(82,099	)					17,661
Financing activities
Proceeds from exercise of common stock options (net of tax)						5,941						5,185						9,951						7,580
Incremental tax benefit from exercise of common stock options						4,449						230						9,338						1,495
Repurchases of common stock						—						—						—						(3,541	)
Net cash provided by financing activities						10,390						5,415						19,289						5,534
Effect of exchange rate differences on cash and cash equivalents						(17	)					691						(16	)					517
Net increase (decrease) in cash and cash equivalents						35,848						34,836						(24,257	)					39,983
Cash and cash equivalents at beginning of the period						68,984						48,525						129,089						43,378
Less: Cash and cash equivalents of discontinued operations at end of period						76						271						76						271
Cash and cash equivalents at end of period					$	104,756					$	83,090					$	104,756					$	83,090
Supplemental disclosure of cash flow information
Cash paid for income taxes					$	2,366					$	4,810					$	2,445					$	5,377
Cash paid for interest						32						28						40						38
Note payable issued in connection with acquisition						—						—						40,000						—
Contingent purchase price accrued						—						—						8,185						4,695

Source: Liquidity Services, Inc.

Liquidity Services, Inc.
Julie Davis, 202-467-6868 ext. 2234
Director,
Investor Relations
[email protected]