Defense Logistics Agency awards extension of contract performance
period combined with modification of certain principal terms
WASHINGTON–(BUSINESS WIRE)–Jun. 9, 2015–
Liquidity Services (NASDAQ: LQDT), a global solution provider in the
reverse supply chain with the world’s largest marketplace for business
surplus, today announced it has been awarded a contract extension by the
U.S. Defense Logistics Agency (DLA) for its Scrap Property sales
contract (Scrap Contract). Through this amendment, the performance
period has been extended by a base term of nine months with three
three-month additional option periods, commencing on June 9, 2015.
During this period, Liquidity Services will continue to serve as the
sales channel for the disposition of DLA scrap property that is approved
for public sale.
Additional modifications have been made to the principal terms of the
Contract pricing will be adjusted to reflect a 65% profit sharing
distribution to the DLA.
The DLA may elect to terminate portions of the contract by location
with a 90-day notification required no sooner than February 1, 2016.
The DLA may elect to terminate portions of the contract by certain
commodity categories with a 60-day notification required no sooner
than October 1, 2015.
Under the Scrap Contract, Liquidity Services manages the receipt,
storage, marketing and disposition of virtually all scrap property
generated by DoD installations throughout the continental United States,
Alaska, Hawaii, Puerto Rico and Guam including: base materials and scrap
metals like ferrous and non-ferrous metals, nickel alloy, electronic
scrap, rubber, paper and in rare occasions, compost, cooking grease, and
recycled asphalt. Assets are offered for sale through Liquidity
Services’ online auction marketplace, http://www.GovLiquidation.com,
to a global buyer base.
The extension of the performance period and the modification to
principal terms of the Scrap Contract is described in an 8-K to be filed
today with the SEC.
Liquidity Services does not believe the Scrap Contract extension will
have a material effect on its third quarter fiscal year 2015 guidance.
About Liquidity Services
Liquidity Services is a global solution provider in the reverse supply
chain with the world’s largest marketplace for business surplus. We
partner with global Fortune 1000 corporations, middle market companies,
and government agencies to intelligently transform surplus assets and
inventory from a burden into a liquid opportunity that fuels the
achievement of strategic goals. Our superior service, unmatched scale,
and ability to deliver results enable us to forge trusted, long-term
relationships with over 7,000 clients worldwide. With approximately $1
billion in annual sales proceeds, and nearly 3 million buyers in almost
200 countries and territories, we are the proven leader in delivering
smart surplus solutions. Let us build a better future for your surplus.
Visit us at www.LiquidityServices.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150609006601/en/
Source: Liquidity Services
Jen Porter, APR
Manager, Marketing Operations
Senior Director, Investor Relations
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