Press Releases
Aug 16

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

– Third quarter revenue of $121.3 million up 46% – Record Gross
Merchandise Volume (GMV) of $225.6 million up 52% – Record Adjusted
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
of $33.4 million up 121% – Record Adjusted EPS of $0.56

WASHINGTON–(BUSINESS WIRE)–Jul. 31, 2012–
Liquidity Services, Inc. (NASDAQ: LQDT; www.liquidityservicesinc.com)
today reported its financial results for its third quarter of fiscal
year 2012 (Q3-12) ended June 30, 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. (Liquidity Services or the Company) reported
consolidated Q3-12 revenue of $121.3 million, an increase of
approximately 46% from the prior year’s comparable period. Adjusted
EBITDA, which excludes stock based compensation and acquisition costs,
for Q3-12 was a record $33.4 million, an increase of approximately 121%
from the prior year’s comparable period. Q3-12 GMV, the total sales
volume of all merchandise sold through the Company’s marketplaces, was a
record $225.6 million, an increase of approximately 52% from the prior
year’s comparable period.

Net income in Q3-12 was $14.9 million or $0.45 diluted earnings per
share. Adjusted net income, which excludes stock based compensation,
acquisition costs and amortization of contract-related intangible assets
associated with the Jacobs Trading acquisition – net of tax, in Q3-12
was a record $18.7 million or a record $0.56 diluted earnings per share
based on 33.2 million fully diluted shares outstanding. Adjusted net
income and adjusted diluted EPS for the prior year period (Q3-11) were
positively impacted by a onetime tax benefit, of $0.26 per diluted
share, as a result of closing our UK operations in the prior year.
Normalizing the prior year adjusted EPS for the tax benefit results in
115% year over year growth.

Liquidity Services has $1.1 million in the Acquisition Costs line item
of its Statement of Operations, for Q3-12, as a result of the GoIndustry
acquisition which closed in early July.

“Liquidity Services reported record results for GMV, Adjusted EBITDA and
Adjusted EPS in Q3-12 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 commercial capital assets 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 75 Fortune 500 corporations, over 4,700 federal,
state and local government agencies and 1.8 million registered buyers
utilizing our marketplaces. Our progress has generated strong financial
results for our shareholders, exemplified by our adjusted EBITDA of
$99.5 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 Liquidity Services.

We are pleased to have closed our acquisition of GoIndustry (www.go-dove.com)
in early July and have commenced the integration of this
business. GoIndustry’s client base which includes over 50 leading
Fortune 1000 global manufacturers and asset based lenders across
multiple industries, including aerospace, consumer packaged goods,
electronics, pharmaceutical, technology and transportation, will benefit
significantly from our logistics, support and large buyer base for a
range of high value capital assets such as: material handling equipment,
rolling stock, heavy machinery and scrap metal. The acquisition of
GoIndustry enhances Liquidity Services’ ability to deliver surplus asset
management, valuation and disposition services to large multinational
enterprises across North America, Europe and Asia. These blue chip
corporate clients are already being integrated into our commercial
business demonstrating our strategic focus on further growing our
capital assets vertical and penetrating many existing clients with
additional services.

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 and industrial supply chains and GDP
growth. Additionally, we may fund major upgrades in our technology
infrastructure to support further integration of our existing businesses
and online marketplaces, including the integration of Truckcenter.com,
Jacobs Trading and GoIndustry, which are proceeding according to our
original plan. 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.

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

      (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 30th
of each year. We are eligible to receive this incentive in each year of
the term of the Scrap Contract. We earned approximately $1,651,000 under
this incentive feature for the 12 months ended June 30, 2012, and we
recorded this amount in the quarter ended June 30, 2012.

GMV – We expect GMV for fiscal year 2012 to
range from $850 million to $860 million, which is an increase from our
previous guidance range of $760 million to $800 million, primarily as a
result of the GoIndustry acquisition and organic growth. We expect GMV
for Q4-12 to range from $230 million to $240 million.

Adjusted EBITDA – We expect Adjusted EBITDA
for fiscal year 2012 to range from $108 million to $110 million, which
is an increase from our previous guidance range of $96 million to $100
million. We expect Adjusted EBITDA for Q4-12 to range from $21.0 million
to $23.0 million.

Adjusted Diluted EPS – We estimate Adjusted
Earnings Per Diluted Share for fiscal year 2012 to range from $1.81 to
$1.84, which is an increase from our previous guidance range of $1.64 to
$1.70. In Q4-12, we estimate Adjusted Earnings Per Diluted Share to be
$0.35 to $0.38. This guidance assumes that we have an average fully
diluted number of shares outstanding for the year of 33.0 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 for the fourth quarter of fiscal year 2012. These stock based
compensation costs are consistent with fiscal year 2011.

Key Q3-12 Operating Metrics

Registered Buyers — At the end of Q3-12,
registered buyers totaled approximately 1,764,000, representing a 13%
increase over the approximately 1,567,000 registered buyers at the end
of Q3-11.

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 537,000 in Q3-12, an approximately 20%
increase over the approximately 448,000 auction participants in Q3-11.

Completed Transactions — Completed
transactions increased to approximately 126,000, an approximately 10%
increase for Q3-12 from the approximately 115,000 completed transactions
in Q3-11.

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
Q3-12 decreased to 23.7% compared to 32.4% 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

      Q3-12       Q3-11
Profit-Sharing Model:      
Scrap Contract 8.8 %       15.7 %
Total Profit Sharing 8.8 % 15.7 %
Consignment Model:
GovDeals 16.8 % 23.4 %
Commercial – US 36.8 %       24.0 %
Total Consignment 53.6 % 47.4 %
Purchase Model:
Commercial – US 22.7 % 19.1 %
Surplus Contract 14.9 %       15.9 %
Total Purchase 37.6 % 35.0 %
 
Other         1.9 %
Total 100.0 %       100.0 %
 

Revenue Mix

Q3-12       Q3-11
Profit-Sharing Model:
Scrap Contract 16.3 %       27.0 %
Total Profit Sharing 16.3 % 27.0 %
Consignment Model:
GovDeals 2.9 % 3.5 %
Commercial – US 10.1 %       6.0 %
Total Consignment 13.0 % 9.5 %
Purchase Model:
Commercial – US 42.9 % 32.9 %
Surplus Contract 27.8 %       27.4 %
Total Purchase 70.7 % 60.3 %
 
Other         3.2 %
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
(loss) plus interest expense (income) and other expense, net; provision
(benefit) 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 and goodwill impairment. Adjusted EBITDA for the three and
nine months ended June 30, 2011 includes the operating losses generated
by our UK operations, which were closed down as of September 30, 2011.

           
Three Months Nine Months
Ended June 30, Ended June 30,
  2012        

2011

  2012         2011
(in thousands) (unaudited)
Net income (loss) $ 14,863 $ (1,057 ) $ 42,751 $ 5,385
Interest expense (income) and other expense, net 517 (5 ) 1,625 49
Provision (benefit) for income taxes 9,909 (4,550 ) 29,025 1,892
Amortization of contract intangibles 2,020 203 6,059 610
Depreciation and amortization   1,477   1,391   4,508   3,932
 
EBITDA   28,786   (4,018 )   83,968   11,868
Stock compensation expense 3,537 2,221 8,655 6,749
Acquisition costs and goodwill impairment   1,109   16,894   (5,562 )   21,589
 
Adjusted EBITDA $ 33,432 $ 15,097 $ 87,061 $ 40,206
 

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 and
acquisition costs including changes in earn out estimates and goodwill
impairment. Adjusted basic and diluted earnings per share are determined
using Adjusted Net Income. Adjusted net income for the three and nine
months ended June 30, 2011 includes the operating losses generated by
our UK operations, which were closed down as of September 30, 2011.

           
Three Months Ended June 30, Nine Months Ended June 30,
  2012         2011   2012         2011
(Unaudited) (Dollars in thousands, except per share data)
Net income (loss) $ 14,863 $ (1,057 ) $ 42,751 $ 5,385
Stock compensation expense (net of tax) 2,122 2,731 5,193 4,995
Amortization of contract intangibles (net of tax) 1,090 3,269
Acquisition costs and goodwill impairment (net of tax)   665   13,628   (3,337 )   15,976
 
Adjusted net income* $ 18,740 $ 15,302 $ 47,876 $ 26,356
 
Adjusted basic earnings per common share $ 0.60 $ 0.55 $ 1.55 $ 0.96
 
Adjusted diluted earnings per common share* $ 0.56 $ 0.52 $ 1.46 $ 0.92
 
Basic weighted average shares outstanding   31,140,261   27,928,750   30,791,297   27,478,342
 
Diluted weighted average shares outstanding   33,183,165   29,440,811   32,781,370   28,600,098
 

*Adjusted net income and adjusted diluted EPS for the prior year periods
were positively impacted by a onetime tax benefit, of $0.26 per diluted
share, as a result of closing our UK operations in the prior year.

Conference Call

The Company will host a conference call to discuss the fiscal third
quarter 2012 results at 10:30 a.m. Eastern Time today. Investors and
other interested parties may access the teleconference by dialing
866-202-1971 or 617-213-8842 and providing the participant pass code
53680592. 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 August 31, 2012 at 11:59 p.m. ET. An audio
replay of the teleconference will also be available until August 31,
2012 at 11:59 p.m. ET. To listen to the replay, dial 888-286-8010 or
617-801-6888 and provide pass code 87376416. 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 GoIndustry, Jacobs Trading and
Truckcenter.com, into our existing operations and our ability to realize
any anticipated benefits of these or other acquisitions; 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 Liquidity Services

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 and Go-Dove.com) sectors. Liquidity Services is
based in Washington, D.C. and has approximately 1,100 employees.
Additional information can be found at: www.liquidityservicesinc.com.

           
Liquidity Services, Inc. and Subsidiaries
Consolidated Balance Sheets
(Dollars in Thousands)
 
June 30,

 

September 30,

2012 2011
Assets (Unaudited)
Current assets:
Cash and cash equivalents $ 84,625 $ 128,984
Accounts receivable, net of allowance for doubtful accounts of $810
and $514 at June 30, 2012 and September 30, 2011, respectively
12,090 6,049
Inventory 26,415 15,065
Prepaid and deferred taxes 15,336 16,073
Prepaid expenses and other current assets 5,613 4,805
Current assets of discontinued operations   44   277
Total current assets 144,123 171,253
Property and equipment, net 7,166 7,042
Intangible assets, net 31,751 2,993
Goodwill 150,766 40,549
Other assets   5,754   5,970
Total assets $ 339,560 $ 227,807
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 5,540 $ 8,590
Accrued expenses and other current liabilities 29,722 23,411
Profit-sharing distributions payable 2,938 7,267
Current portion of acquisition earn out payables 8,269 5,410
Customer payables 12,561 12,728
Current portion of note payable 9,500
Current liabilities of discontinued operations   266   2,160
Total current liabilities 68,796 59,566
Acquisition earn out payables 4,741
Note payable, net of current portion 32,000
Deferred taxes and other long-term liabilities   2,215   2,087
Total liabilities 103,011 66,394
Stockholders’ equity:
Common stock, $0.001 par value; 120,000,000 shares authorized;
31,461,715 shares issued and 30,956,648 shares outstanding at June
30, 2012; 31,192,608 shares issued and 29,030,552 shares outstanding
at September 30, 2011
31 29
Additional paid-in capital 165,405 124,886
Treasury stock, at cost (29,999 ) (21,884 )
Accumulated other comprehensive income 31 52
Retained earnings   101,081   58,330
Total stockholders’ equity   236,549   161,413
Total liabilities and stockholders’ equity $ 339,560 $ 227,807
 
           
Liquidity Services, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in Thousands, Except Share and Per Share Data)
 
Three Months Ended June 30, Nine Months Ended June 30,
2012         2011   2012         2011
 
Revenue

$

105,601

$ 75,163 $ 313,405 $ 226,770
Fee revenue   15,672   8,147   39,624   21,403
Total revenue from continuing operations 121,273 83,310 353,029 248,173
 
Costs and expenses from continuing operations:
Cost of goods sold (excluding amortization) 49,187 31,767 147,497 100,955
Profit-sharing distributions 10,245 12,324 34,117 34,529
Technology and operations 15,943 12,867 47,528 38,939
Sales and marketing 7,364 5,571 20,809 17,286
General and administrative 8,639 6,579 24,672 19,658
Amortization of contract intangibles 2,020 203 6,059 610
Depreciation and amortization 1,477 1,300 4,508 3,540
Acquisition costs, net   1,109   246   (5,562 )   4,941
 
Total costs and expenses   95,984   70,857   279,628   220,458
 
Income from continuing operations 25,289 12,453 73,401 27,715
Interest expense and other expense, net   (517 )   (274 )   (1,625 )   (787 )
 
Income before provision for income taxes from continuing operations 24,772 12,179 71,776 26,928
Provision for income taxes   (9,909 )   (5,616 )   (29,025 )   (12,059 )
Income from continuing operations 14,863 6,563 42,751 14,869
Loss from discontinued operations, net of tax     (7,620 )     (9,483 )
Net income (loss)

$

14,863

$ (1,057 ) $ 42,751 $ 5,386
 
Basic earnings (loss) per common share:
From continuing operations

$

0.48

$ 0.23 $ 1.39 $ 0.54
From discontinued operations     (0.27 )     (0.34 )
Basic earnings (loss) per common share

$

0.48

$ (0.04 ) $ 1.39 $ 0.20
 
Diluted earnings (loss) per common share:
From continuing operations $ 0.45 $ 0.22 $ 1.30 $ 0.52
From discontinued operations     (0.26 )     (0.33 )
Diluted earnings (loss) per common share $ 0.45 $ (0.04 ) $ 1.30 $ 0.19
 
Basic weighted average shares outstanding   31,140,261   27,928,750   30,791,297   27,478,342
Diluted weighted average shares outstanding   33,183,165   29,440,811   32,781,370   28,600,098
 
           
Liquidity Services, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In Thousands)
 
Three Months Ended June 30, Nine Months Ended June 30,
2012         2011         2012         2011
Operating activities            
Net income (loss) $ 14,863 $ (1,056

)

$ 42,751 $ 5,386
Less: discontinued operations, net of tax    

(7,620

)

 

  (9,483 )
 
Income from continuing operations 14,863 6,564 42,751 14,869
Adjustments to reconcile income from continuing operations to net
cash provided by operating activities from continuing operations:
Depreciation and amortization 3,497 1,503 10,567 4,150
Stock compensation expense 3,537 2,221 8,655 6,749
Provision (benefit) for inventory allowance (736 ) 96 (776 ) 51
Provision (benefit) for doubtful accounts (88 ) 33 (217 ) 130
Incremental tax benefit from exercise of common stock options (5,850 ) (954 ) (15,188 ) (2,449 )
Changes in operating assets and liabilities:
Accounts receivable (494 ) (1,221 ) (1,114 ) (4,003 )
Inventory (2,040 ) 3,330 (4,515 ) 1,301
Prepaid expenses and other assets 240 7,331 13,400 7,220
Accounts payable (10,046 ) 1,505 (6,239 ) 288
Accrued expenses and other 3,741 (2,403 ) 6,764 (5,003 )
Profit-sharing distributions payable (3,179 ) (4,749 ) (4,329 ) (238 )
Customer payables (2,393 ) (1,413 ) (167 ) 3,553
Acquisition earn out payables 41 (10,068 ) 2,195
Other liabilities   (39 )   146   128   21
 
Net cash provided by operating activities from continuing operations 1,054 11,989 39,652 28,834
Net cash (used in) provided by activities from discontinuing
operations
  (352 )   240   (381 )   (334 )
 
Net cash provided by operating activities 702 12,229 39,271 28,500
Investing activities
Purchases of short-term investments

(968

)

 

(8,830 )
Proceeds from the sale of short-term investments 2,895 31,420
Increase in goodwill and intangibles and cash paid for acquisitions (23 ) (9,001 ) (80,063 ) (9,030 )
Purchases of property and equipment   (769 )   (1,426 )   (2,828 )   (4,399 )
 
Net cash (used in) provided by investing activities (792 ) (8,500 ) (82,891 ) 9,161
Financing activities
Proceeds from exercise of common stock options (net of tax) 4,071 5,471 14,022 13,051
Incremental tax benefit from exercise of common stock options 5,850 954 15,188 2,449
Repurchases of common stock   (29,999 )     (29,999 )   (3,541 )
 
Net cash (used in) provided by financing activities (20,078 ) 6,425 (789 ) 11,959
Effect of exchange rate differences on cash and cash equivalents   (5 )   (3 )   (21 )   514
 
Net (decrease) increase in cash and cash equivalents (20,173 ) 10,151 (44,430 ) 50,134
Cash and cash equivalents at beginning of the period 104,832 83,361 129,089 43,378
Less: Cash and cash equivalents of discontinued operations at end of
period
  34   511   34   511
 
Cash and cash equivalents at end of period $ 84,625 $ 93,001 $ 84,625 $ 93,001
Supplemental disclosure of cash flow information
Cash paid for income taxes $ 9,316 $ 856 $ 11,761 $ 6,233
Cash paid for interest 12 9 52 47
Note payable issued in connection with acquisition

40,000

 

Contingent purchase price accrued 1,196 4,695
 

Source: Liquidity Services, Inc.

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