– Third quarter revenue of $72.8 million up 25% – Record GMV of
$109.0 million up 20% –
Record Adjusted EBITDA of $10.6 million up 18% – Adjusted EPS of $0.15
WASHINGTON, Aug 03, 2010 (BUSINESS WIRE) —
Liquidity Services, Inc. (NASDAQ: LQDT; www.liquidityservicesinc.com)
today reported its financial results for its third quarter of fiscal
year 2010 (Q3-10) ended June 30, 2010. 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
Q3-10 revenue of $72.8 million, an increase of approximately 25% from
the prior year’s comparable period. Adjusted EBITDA, which excludes
stock based compensation and acquisition costs, for Q3-10 was a record
$10.6 million, an increase of approximately 18% from the prior year’s
comparable period. Q3-10 Gross Merchandise Volume (GMV), the total sales
volume of all merchandise sold through the Company’s marketplaces, was a
record $109.0 million, an increase of approximately 20% from the prior
year’s comparable period.
Net income in Q3-10 was $3.0 million or $0.11 diluted earnings per
share. Adjusted net income, which excludes stock-based compensation and
acquisition costs – net of tax, in Q3-10 was $4.0 million or $0.15
adjusted diluted earnings per share. Net income and adjusted net income
for Q3-10 were adversely affected by a sharp increase in the Company’s
effective income tax rate from approximately 46% to 57%. The Company
estimates that its fiscal year 2010 effective tax rate will be
approximately 50%, which is an increase from the estimated 46% utilized
during Q1-10 and Q2-10, resulting in an effective tax rate for Q3-10 of
approximately 57% from the cumulative adjustment. The estimated 4%
increase, in the effective rate, is a result of higher losses incurred
year to date than were expected in the Company’s foreign operations,
which are not deductable against its U.S. taxable income. Excluding this
tax adjustment, adjusted diluted earnings per share for Q3-10 would have
been $0.18. The Company estimates that its subsequent year’s effective
income tax rate will be approximately 46%, which is comprised of (1)
approximately 35% for federal taxes; (2) approximately 8% for state
taxes, which combined approximates the Company’s cash tax rate of 43%;
and (3) approximately 3% for book and tax differences including
stock-based compensation expenses, primarily related to employee stock
options, which are currently expensed in the financial statements but
are not deductable for tax purposes until they are exercised. Operating
cash flow was $8.5 million during Q3-10, an increase of approximately
20% from the prior year’s comparable period.
“LSI reported record results for GMV and Adjusted EBITDA in Q3-10 with
GMV, Adjusted EBITDA and adjusted diluted earnings per share (net of the
tax adjustment) all exceeding our guidance range. As more commercial and
government sellers have discovered the efficiency of our online
marketplaces this has helped generate strong financial results for our
shareholders, exemplified by our Adjusted EBITDA of $36.3 million and
operating cash flow of $29.0 million over the last 12 months. By
continuing to invest in growing our e-commerce business in the United
States and abroad 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 client’s financial and
environmental sustainability initiatives,” said Bill Angrick, Chairman
and CEO of LSI.
“During Q3-10 we are pleased to have closed the Network International
acquisition on June 15th and have commenced the integration
of this business. Network’s client base in the energy sector, which
utilizes the consignment model, will benefit significantly from our
large buyer base for a range of high value capital assets such as: store
fixtures, material handling equipment, rolling stock, heavy machinery
and scrap metal. These blue chip corporate clients are already being
integrated into our commercial business demonstrating our strategic
focus on further growing our capital assets vertical.”
“Our buyer marketplace continues to deliver strong results for our
sellers as we ended the quarter with approximately 1,315,000 registered
buyers, which is up approximately 14% over the prior year period,
illustrating that our marketplace continues to be attractive to buyers
in a difficult economy,” stated Angrick.
Business Outlook
We are pleased with our recent progress, and our overall outlook remains
positive while acknowledging that there still remains a high level of
uncertainty within the global economy and that the recovery of business
and consumer spending is still fragile. 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. As we improve operating efficiencies and service, we expect
our competitive position to strengthen.
The following forward-looking statements reflect trends and assumptions
for the next quarter and FY 2010:
| (i) |
improved commodity prices in our scrap business compared to the declining prices during fiscal year 2009; |
|
| (ii) |
stabilized average sales prices realized in our commercial, state and local government marketplaces compared to the declining average prices of fiscal year 2009; |
|
| (iii) | an effective income tax rate of 50%; | |
| (iv) |
improved operations and service levels in our commercial business; and |
|
| (v) |
our expectation that we will achieve less than optimal results in our U.K. business. |
Our results may also be materially affected by changes in business
trends and our operating environment, and by other factors, such as
investments in 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.
We earned approximately $1,286,000 under this incentive feature for the
12 months ended June 30, 2010 and we recorded this amount in the quarter
ended June 30, 2010.
GMV – We expect GMV for fiscal
year 2010 to range from $408 million to $418 million, which is an
increase from our prior guidance range of $360 million to $400 million.
We expect GMV for Q4-10 to range from $100 million to $110 million.
Adjusted EBITDA – We expect
Adjusted EBITDA for fiscal year 2010 to range from $35 million to $37
million, which is an increase from our prior guidance range of $31
million to $35 million. We expect Adjusted EBITDA for Q4-10 to range
from $6.0 million to $8.0 million.
Adjusted Diluted EPS – We estimate
Adjusted Earnings Per Diluted Share for fiscal year 2010 to range from
$0.55 to $0.59. In Q4-10, we estimate Adjusted Earnings Per Diluted
Share to range from $0.08 to $0.12. This guidance reflects (1) the
expected increase in the effective tax rate for fiscal year 2010 to
approximately 50% from 46% and (2) the recent impact of our stock
repurchase program under which we repurchased 293,181 shares for
approximately $4.0 million during the prior quarter, however it does not
assume that we will continue to repurchase shares with the approximately
$3.2 million yet to be expended under the program.
Our guidance adjusts EBITDA and Diluted EPS for the effects of
stock-based compensation, which we estimate to be approximately $1.9
million to $2.2 million for Q4-10. The Company expects its trend of
increasing stock-based compensation costs to moderate in fiscal year
2011.
Key Q3-10 Operating Metrics
Registered Buyers — At the end of
Q3-10, registered buyers totaled approximately 1,315,000, representing a
14% increase over the approximately 1,152,000 registered buyers at the
end of Q3-09.
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 595,000 in Q3-10, an approximately 8%
increase over the approximately 548,000 auction participants in Q3-09.
Completed Transactions — Completed
transactions increased to approximately 140,000, an approximately 16%
increase for Q3-10 from the approximately 121,000 completed transactions
in Q3-09.
GMV and Revenue Mix — The table
below summarizes GMV and revenue by pricing model.
|
GMV Mix |
||||
| Q3-10 | Q3-09 | |||
| Profit-Sharing Model: | ||||
| Original Surplus Contract | 0.0% | 6.3% | ||
| Scrap | 17.3% | 15.2% | ||
| Total Profit Sharing | 17.3% | 21.5% | ||
| Consignment Model: | ||||
| GovDeals | 22.4% | 23.1% | ||
| Commercial – US | 16.5% | 20.3% | ||
| Total Consignment | 38.9% | 43.4% | ||
| Purchase Model: | ||||
| Commercial – US | 20.4% | 18.0% | ||
| New Surplus Contract | 20.9% | 13.4% | ||
| Commercial – International | 1.6% | 2.7% | ||
| Total Purchase | 42.9% | 34.1% | ||
| Other | 0.9% | 1.0% | ||
| Total | 100.0% | 100.0% | ||
|
Revenue Mix |
||||
| Q3-10 | Q3-09 | |||
| Profit-Sharing Model: | ||||
| Original Surplus Contract | 0.0% | 9.8% | ||
| Scrap | 26.0% | 23.7% | ||
| Total Profit Sharing | 26.0% | 33.5% | ||
| Consignment Model: | ||||
| GovDeals | 3.1% | 2.9% | ||
| Commercial – US | 5.2% | 8.3% | ||
| Total Consignment | 8.3% | 11.2% | ||
| Purchase Model: | ||||
| Commercial – US | 30.6% | 28.1% | ||
| New Surplus Contract | 31.3% | 20.9% | ||
| Commercial – International | 2.4% | 4.2% | ||
| Total Purchase | 64.3% | 53.2% | ||
| Other | 1.4% | 2.1% | ||
| Total | 100.0% | 100.0% | ||
|
Liquidity Services, Inc. |
|
Reconciliation of GAAP to |
|
EBITDA and Adjusted EBITDA. |
| Three Months | Nine Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (in thousands) (unaudited) | ||||||||||||||||
| Net income | $ | 2,990 | $ | 3,400 | $ | 9,507 | $ | 5,077 | ||||||||
| Interest income and other income, net | (50 | ) | (33 | ) | (91 | ) | (359 | ) | ||||||||
| Provision for income taxes | 4,041 | 2,896 | 9,692 | 4,325 | ||||||||||||
| Amortization of contract intangibles | 203 | 203 | 610 | 610 | ||||||||||||
| Depreciation and amortization | 1,058 | 828 | 2,938 | 2,144 | ||||||||||||
| EBITDA | 8,242 | 7,294 | 22,656 | 11,797 | ||||||||||||
| Stock compensation expense | 1,785 | 1,652 | 6,029 | 4,702 | ||||||||||||
| Acquisition costs | 524 | — | 524 | — | ||||||||||||
| Adjusted EBITDA | $ | 10,551 | $ | 8,946 | $ | 29,209 | $ | 16,499 | ||||||||
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-based compensation expense and transaction expenses
related to acquisitions. Adjusted basic and diluted earnings per share
are determined using Adjusted Net Income.
| Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||
| (Unaudited) (Dollars in thousands, except per share data) | ||||||||||||
| Net income | $ | 2,990 | $ | 3,400 | $ | 9,507 | $ | 5,077 | ||||
| Stock compensation expense (net of tax) | 758 | 892 | 2,985 | 2,539 | ||||||||
| Acquisition related expenses (net of tax) | 223 | — | 259 | — | ||||||||
| Adjusted net income | $ | 3,971 | $ | 4,292 | $ | 12,751 | $ | 7,616 | ||||
| Adjusted basic earnings per common share | $ | 0.15 | $ | 0.16 | $ | 0.47 | $ | 0.28 | ||||
| Adjusted diluted earnings per common share | $ | 0.15 | $ | 0.16 | $ | 0.47 | $ | 0.28 | ||||
| Basic weighted average shares outstanding | 26,959,713 | 27,464,177 | 27,181,879 | 27,755,997 | ||||||||
| Diluted weighted average shares outstanding | 27,371,132 | 27,556,616 |
27,424,427 |
27,851,652 | ||||||||
Conference Call
The Company will host a conference call to discuss the third quarter
fiscal year 2010 results at 5 p.m. Eastern Time today. Investors and
other interested parties may access the teleconference by dialing
866-510-0707 or 617-597-5376 and providing the participant pass code
19462475. A live web cast of the conference call will be provided on the
Company’s investor relations website at http://www.liquidityservicesinc.com.
An archive of the web cast will be available on the Company’s website
for 30 calendar days ending September 3, 2010 at 11:59 p.m. ET. An audio
replay of the teleconference will also be available until September 3,
2010 at 11:59 p.m. ET. To listen to the replay, dial 888-286-8010 or
617-801-6888 and provide pass code 76207046. Both replays will be
available starting at 8:00 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, 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 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; and our ability to successfully complete the integration of
any acquired companies 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, online
auction environment offering over 500 product categories. The Company’s
marketplaces provide professional buyers access to a global, organized
supply of surplus and salvage assets presented with customer focused
information including digital images and other relevant product
information along with services to efficiently complete the transaction.
Additionally, LSI enables its corporate and government sellers to
enhance their financial return on excess assets by providing liquid
marketplaces and value-added services that integrate sales and
marketing, logistics and transaction settlement 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, energy equipment, industrial capital assets and specialty
equipment. The Company’s online auction marketplaces are www.liquidation.com,
www.govliquidation.com,
www.govdeals.com,
www.networkintl.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) | ||||||||
| June 30, | September 30, | |||||||
| 2010 | 2009 | |||||||
| Assets | (Unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 51,529 | $ | 33,538 | ||||
| Short-term investments | 17,681 | 30,616 | ||||||
|
Accounts receivable, net of allowance for doubtful accounts of $340 and $613 at June 30, 2010 and September 30, 2009, respectively |
4,838 | 4,243 | ||||||
| Inventory | 14,611 | 14,280 | ||||||
| Prepaid expenses, deferred taxes and other current assets | 9,708 | 8,705 | ||||||
| Total current assets | 98,367 | 91,382 | ||||||
| Property and equipment, net | 7,065 | 6,147 | ||||||
| Intangible assets, net | 3,480 | 4,203 | ||||||
| Goodwill | 38,930 | 33,738 | ||||||
| Other assets | 7,061 | 3,118 | ||||||
| Total assets | $ | 154,903 | $ | 138,588 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 10,005 | $ | 5,456 | ||||
| Accrued expenses and other current liabilities | 21,219 | 14,740 | ||||||
| Profit-sharing distributions payable | 4,058 | 4,538 | ||||||
| Customer payables | 8,533 | 6,797 | ||||||
| Current portion of capital lease obligations | — | 56 | ||||||
| Total current liabilities | 43,815 | 31,587 | ||||||
| Capital lease obligations, net of current portion | — | 82 | ||||||
| Deferred taxes and other long-term liabilities | 4,725 | 2,937 | ||||||
| Total liabilities | 48,540 | 34,606 | ||||||
| Stockholders’ equity: | ||||||||
|
Common stock, $0.001 par value; 120,000,000 shares authorized; 28,614,449 shares issued and 26,792,768 shares outstanding at June 30, 2010; 28,271,983 shares issued and 27,564,521 shares outstanding at September 30, 2009 |
27 | 28 | ||||||
| Additional paid-in capital | 81,420 | 73,641 | ||||||
| Treasury stock, at cost | (16,761 | ) | (3,874 | ) | ||||
| Accumulated other comprehensive loss | (5,635 | ) | (3,618 | ) | ||||
| Retained earnings | 47,312 | 37,805 | ||||||
| Total stockholders’ equity | 106,363 | 103,982 | ||||||
| Total liabilities and stockholders’ equity | $ | 154,903 | $ | 138,588 | ||||
| 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, | ||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||||||
| Revenue | $ | 72,751 | $ | 58,045 | $ | 213,846 | $ | 173,363 | |||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of goods sold (excluding amortization) | 30,378 | 20,688 | 90,686 | 61,980 | |||||||||||||
| Profit-sharing distributions | 10,256 | 8,094 | 30,315 | 34,231 | |||||||||||||
| Technology and operations | 11,982 | 11,413 | 36,224 | 35,019 | |||||||||||||
| Sales and marketing | 5,221 | 4,398 | 14,879 | 13,303 | |||||||||||||
| General and administrative | 6,148 | 6,158 | 18,562 | 17,033 | |||||||||||||
| Amortization of contract intangibles | 203 | 203 | 610 | 610 | |||||||||||||
| Depreciation and amortization | 1,058 | 828 | 2,938 | 2,144 | |||||||||||||
| Acquisition costs | 524 | — | 524 | — | |||||||||||||
| Total costs and expenses | 65,770 | 51,782 | 194,738 | 164,320 | |||||||||||||
| Income from operations | 6,981 | 6,263 | 19,108 | 9,043 | |||||||||||||
| Interest income and other income, net | 50 | 33 | 91 | 359 | |||||||||||||
| Income before provision for income taxes | 7,031 | 6,296 | 19,199 | 9,402 | |||||||||||||
| Provision for income taxes | (4,041 | ) | (2,896 | ) | (9,692 | ) | (4,325 | ) | |||||||||
| Net income | $ | 2,990 | $ | 3,400 | $ | 9,507 | $ | 5,077 | |||||||||
| Basic earnings per common share | $ | 0.11 | $ | 0.12 | $ | 0.35 | $ | 0.18 | |||||||||
| Diluted earnings per common share | $ | 0.11 | $ | 0.12 | $ | 0.35 | $ | 0.18 | |||||||||
| Basic weighted average shares outstanding | 26,959,713 | 27,464,177 | 27,181,879 | 27,755,997 | |||||||||||||
| Diluted weighted average shares outstanding | 27,371,132 | 27,556,616 | 27,424,427 | 27,851,652 | |||||||||||||
| Liquidity Services, Inc. and Subsidiaries | |||||||||||||||||
| Unaudited Consolidated Statements of Cash Flows | |||||||||||||||||
| (In Thousands) | |||||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||||||
| Operating activities | |||||||||||||||||
| Net income | $ | 2,990 | $ | 3,400 | $ | 9,507 | $ | 5,077 | |||||||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||||||||||
| Depreciation and amortization | 1,261 | 1,031 | 3,548 | 2,754 | |||||||||||||
| Stock compensation expense | 1,785 | 1,652 | 6,029 | 4,702 | |||||||||||||
| Provision for doubtful accounts | (80 | ) | 265 | (272 | ) | (54 | ) | ||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||
| Accounts receivable | 609 | (308 | ) | 172 | 988 | ||||||||||||
| Inventory | 1,979 | (249 | ) | (331 | ) | (7 | ) | ||||||||||
| Prepaid expenses and other assets | 653 | (1,957 | ) | (862 | ) | (2,664 | ) | ||||||||||
| Accounts payable | 3,824 | (213 | ) | 4,222 | (2,647 | ) | |||||||||||
| Accrued expenses and other | (113 | ) | 5,115 | 4,570 | 5,352 | ||||||||||||
| Profit-sharing distributions payable | (1,577 | ) | (1,295 | ) | (480 | ) | (7,074 | ) | |||||||||
| Customer payables | (2,736 | ) | (709 | ) | (1,460 | ) | (2,623 | ) | |||||||||
| Other liabilities | (76 | ) | 377 | (224 | ) | 257 | |||||||||||
| Net cash provided by operating activities | 8,519 | 7,109 | 24,419 | 4,061 | |||||||||||||
| Investing activities | |||||||||||||||||
| Purchases of short-term investments | (13,094 | ) | (6,741 | ) | (36,559 | ) | (20,655 | ) | |||||||||
| Proceeds from the sale of short-term investments | 21,596 | 4,615 | 49,360 | 10,015 | |||||||||||||
| Increase in goodwill and intangibles | (25 | ) | (75 | ) | (338 | ) | (161 | ) | |||||||||
| Cash paid for acquisitions, net of cash acquired | (3,587 | ) | — | (3,587 | ) | — | |||||||||||
| Purchases of property and equipment | (836 | ) | (984 | ) | (3,136 | ) | (2,764 | ) | |||||||||
| Net cash provided by (used in) investing activities | 4,054 | (3,185 | ) | 5,740 | (13,565 | ) | |||||||||||
| Financing activities | |||||||||||||||||
| Principal repayments of capital lease obligations and debt | (110 | ) | (3 | ) | (138 | ) | (13 | ) | |||||||||
| Proceeds from exercise of common stock options (net of tax) | 941 | 767 | 1,520 | 949 | |||||||||||||
| Incremental tax benefit from exercise of common stock options | 137 | 20 | 230 | 59 | |||||||||||||
| Repurchases of common stock | (3,967 | ) | — | (12,888 | ) | (3,874 | ) | ||||||||||
| Net cash (used in) provided by financing activities | (2,999 | ) | 784 | (11,276 | ) | (2,879 | ) | ||||||||||
| Effect of exchange rate differences on cash and cash equivalents | (283 | ) | 542 | (892 | ) | (116 | ) | ||||||||||
| Net increase (decrease) in cash and cash equivalents | 9,291 | 5,250 | 17,991 | (12,499 | ) | ||||||||||||
| Cash and cash equivalents at beginning of the period | 42,238 | 34,204 | 33,538 | 51,954 | |||||||||||||
| Cash and cash equivalents at end of period | $ | 51,529 | $ | 39,454 | $ | 51,529 | $ | 39,454 | |||||||||
| Supplemental disclosure of cash flow information | |||||||||||||||||
| Cash paid for income taxes | $ | 3,423 | $ | 4,232 | $ | 9,495 | $ | 7,128 | |||||||||
| Cash paid for interest | 6 | 11 | 16 | 40 | |||||||||||||
| Assets acquired under capital leases | — | 100 | — | 100 | |||||||||||||
| Contingent purchase price accrued | 2,805 | — | 2,805 | — | |||||||||||||
SOURCE: Liquidity Services, Inc.
Liquidity Services, Inc.
Jim Rallo
Chief Financial Officer & Treasurer
202-467-6868
[email protected]
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