Liquidity Services (NASDAQ:LQDT; www.liquidityservices.com), a
leading global commerce company powering the circular economy,
today announced its financial results for the quarter ended June
30, 2024, as compared to the corresponding prior year quarter:
- Record Gross Merchandise Volume
(GMV) of $380.4 million, up 14%, and Revenue of $93.6 million, up
16%
- Highest quarterly GAAP Net Income
in Fiscal Year 2024 of $6.0 million, down $0.5 million1, and GAAP
Diluted Earnings Per Share (EPS) of $0.19, down $0.021
- Highest quarterly Non-GAAP Adjusted
EBITDA in 10 years of $14.7 million, up $1.4 million, and Non-GAAP
Adjusted EPS of $0.30, up $0.02
- Cash balances of $136.8 million2
with zero financial debt
"We are proud to report record GMV this quarter
driven by market share gains, expanded services, and outstanding
buyer participation, which resulted in our strongest Non-GAAP
Adjusted EBITDA performance in a decade. Our flexible services,
ranging from self-directed to fully-managed offerings, and efforts
to harness the benefits of AI technologies are continuing to
attract more sellers and buyers, enhancing the size and scale of
our marketplace and fueling our growth.
"Our GovDeals segment set a quarterly GMV
record, with $250 million in GMV, driven by continued seller
acquisition and service expansion. Our RSCG segment's focus on
exceptional service delivery to its seller clients has been
rewarded with increased volumes, which are poised to accelerate
further in the fourth quarter. Our Machinio segment set another
revenue record as it continues to be a leader in matching buyers
and sellers of used equipment around the globe.
"We have a robust business development pipeline,
and our strong balance sheet has us well positioned to take
advantage of strategic opportunities in the market," said Bill
Angrick, Liquidity Services, CEO.
Third Quarter Financial
Highlights
GMV for the fiscal third quarter of 2024 was
$380.4 million, a 14% increase from $334.0 million in the third
fiscal quarter of 2023.
- GMV in our GovDeals segment
increased 17%, driven by new seller acquisition, service expansion
and strong results in its vehicle and heavy equipment
categories.
- GMV in our RSCG segment increased
9%, driven by increased volumes within client purchase model
programs, partially offset by a lower value product mix in its
consignment programs.
- GMV in our CAG segment increased
7%, driven by consignment sales in our industrial and heavy
equipment categories, partially offset by project delays in the
energy category.
- Consignment sales represented 86%
of consolidated GMV for the third fiscal quarter of 2024.
Revenue for the fiscal third quarter of 2024 was
$93.6 million, a 16% increase from $80.8 million in the third
fiscal quarter of 2023.
- Revenue in our GovDeals segment
increased 28%, reflecting the increase in overall GMV, paired with
a higher blended revenue take-rate due to an expansion of service
offerings to new, high-volume sellers.
- Revenue in our RSCG segment
increased 15%, reflecting increased volumes in our client purchase
model programs relative to consignment programs. This mix shift
tends to dampen RSCG's segment direct profit as a percentage of
revenue. The increased volumes were mainly driven by lower-touch
product flows.
- Revenue in our Machinio segment
increased 15% due to increased subscriptions and pricing for its
Advertising and System products.
- Revenue in our CAG segment
decreased 4% despite the increase in GMV due to an increase in
sales conducted with partners.
The changes in our profitability metrics reflect
our increased top-line performance, and increases in sales,
marketing, technology and operations expenses to drive market share
expansions, resulting in:
- GAAP Net Income of $6.0 million1,
or $0.19 per share1, for the fiscal third quarter of 2024, a
decrease from $6.5 million, or $0.21 per share, for the same
quarter last year.
- Non-GAAP Adjusted Net Income for
the fiscal third quarter of 2024 of $9.5 million, or $0.30 per
share, an increase from $8.8 million, or $0.28 per share for the
same quarter last year.
- Non-GAAP Adjusted EBITDA for the
fiscal third quarter of 2024 of $14.7 million, a $1.4 million
increase from $13.3 million in the same quarter last year.
1 GAAP Net Income for the fiscal third quarter of
2024 was impacted by $1.1 million ($0.8 million net of tax) of
acquisition-related costs and litigation settlement expenses. There
were no comparable impacts to the fiscal third quarter of 2023.
These categories of expense are considered in our calculation of
Non-GAAP Adjusted Net Income and Earnings per Share (see Page 8). 2
Includes $130.3 million of Cash and cash equivalents and $6.5
million of Short-term investments.
Third Quarter Segment Financial
Results
We present operating results for our four
reportable segments: GovDeals, RSCG, CAG and Machinio. For further
information on our reportable segments, including Corporate and
elimination adjustments, see Note 14, Segment Information, to our
quarterly report on Form 10-Q for the period ended June 30, 2024.
Segment direct profit is calculated as total revenue less cost of
goods sold (excluding depreciation and amortization).
Our Q3-FY24 segment results are as follows
(unaudited, dollars in thousands):
|
Three Months Ended June 30, |
|
|
Nine Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
GovDeals: |
|
|
|
|
|
|
|
|
|
|
|
GMV |
$ |
249,652 |
|
|
$ |
213,052 |
|
|
$ |
626,285 |
|
|
$ |
542,025 |
|
Total revenue |
$ |
22,109 |
|
|
$ |
17,270 |
|
|
$ |
56,384 |
|
|
$ |
45,956 |
|
Segment direct profit |
$ |
20,716 |
|
|
$ |
16,389 |
|
|
$ |
52,982 |
|
|
$ |
43,572 |
|
% of Total revenue |
|
94 |
% |
|
|
95 |
% |
|
|
94 |
% |
|
|
95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
RSCG: |
|
|
|
|
|
|
|
|
|
|
|
GMV |
$ |
78,950 |
|
|
$ |
72,677 |
|
|
$ |
225,145 |
|
|
$ |
210,913 |
|
Total revenue |
$ |
58,764 |
|
|
$ |
50,971 |
|
|
$ |
159,299 |
|
|
$ |
150,657 |
|
Segment direct profit |
$ |
17,365 |
|
|
$ |
17,876 |
|
|
$ |
48,478 |
|
|
$ |
50,562 |
|
% of Total revenue |
|
30 |
% |
|
|
35 |
% |
|
|
30 |
% |
|
|
34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
CAG: |
|
|
|
|
|
|
|
|
|
|
|
GMV |
$ |
51,838 |
|
|
$ |
48,229 |
|
|
$ |
154,245 |
|
|
$ |
134,518 |
|
Total revenue |
$ |
8,650 |
|
|
$ |
8,985 |
|
|
$ |
28,764 |
|
|
$ |
27,795 |
|
Segment direct profit |
$ |
7,430 |
|
|
$ |
7,938 |
|
|
$ |
23,611 |
|
|
$ |
23,466 |
|
% of Total revenue |
|
86 |
% |
|
|
88 |
% |
|
|
82 |
% |
|
|
84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Machinio: |
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
$ |
4,106 |
|
|
$ |
3,559 |
|
|
$ |
11,994 |
|
|
$ |
10,144 |
|
Segment direct profit |
$ |
3,906 |
|
|
$ |
3,381 |
|
|
$ |
11,409 |
|
|
$ |
9,611 |
|
% of Total revenue |
|
95 |
% |
|
|
95 |
% |
|
|
95 |
% |
|
|
95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
GMV |
$ |
380,439 |
|
|
$ |
333,958 |
|
|
$ |
1,005,675 |
|
|
$ |
887,456 |
|
Total revenue |
$ |
93,613 |
|
|
$ |
80,770 |
|
|
$ |
256,391 |
|
|
$ |
234,505 |
|
Third Quarter Operational
Metrics
- Registered Buyers — At the end of
Q3-FY24, registered buyers, defined as the aggregate number of
persons or entities who have registered on one of our marketplaces,
totaled approximately 5.4 million, representing a 7% increase over
the approximately 5.1 million registered buyers at the end of
Q3-FY23.
- 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), was approximately 1,016,000 in Q3-FY24, a
10% increase from the approximately 924,000 auction participants in
Q3-FY23.
- Completed Transactions — Completed
transactions, defined as the number of auctions in a given period,
were approximately 263,000 in Q3-FY24, a 4% increase from the
approximately 252,000 completed transactions in Q3-FY23.
Fourth Quarter Business
Outlook
We continue to expect double digit consolidated
GMV growth at the mid-point of our guidance range and solid overall
performance following this fiscal third quarter’s record results.
Following our GovDeals seasonally high fiscal third quarter, our
fiscal fourth quarter GMV outlook continues to expect
year-over-year growth. GovDeals revenue is expected to grow at a
faster year-over-year rate than GMV due to expansion of more
full-service consignment offerings compared to last year, including
our acquisition of Sierra Auction in January 2024.
Led predominantly by an expansion in purchase
volumes in our RSCG segment, we expect RSCG to drive substantial
growth in our fiscal fourth quarter both year-over-year and
sequentially relative to the third quarter results, with revenues
growing faster than GMV. These increased volumes, mostly comprised
of a mix of lower-touch product flows, are expected to generate
improving bottom line results for RSCG yet have the effect of
slightly lowering RSCG's segment direct profit as a percentage of
revenue both year-over-year and sequentially.
Our Machinio subscription-based business is also
anticipated to continue to grow revenue by double digits
year-over-year. Our Capital Assets segment is expected to remain
steady year-over-year and show sequential growth. Reflecting our
growth and market share gains, operating expenses in sales,
operations and technology are expected to be up year-over-year and
sequentially relative to the fiscal third quarter.
Given the expected mix of segment volume flows
from seasonality and program additions, we are anticipating our
consolidated revenue as a percentage of GMV be in the high twenty
percentage range, and our segment direct profits as a percent of
total revenue to be in the high forty percent range. Both ratios
can vary based on our mix, including asset categories in any given
period.
Our Q4-FY24 guidance is as follows:
GMV - We expect GMV to range from $330 million to
$365 million.
GAAP Net Income - We expect GAAP Net Income to
range from $5.0 million to $7.0 million.
GAAP Diluted EPS - We expect GAAP Diluted EPS to
range from $0.16 to $0.22.
Non-GAAP Adjusted EBITDA -We expect Non-GAAP
Adjusted EBITDA to range from $12.0 million to $15.0 million.
Non-GAAP Adjusted Diluted EPS - We expect Non-GAAP
Adjusted EPS to range from $0.25 to $0.32.
Our Business Outlook includes forward-looking
statements which reflect the following trends and assumptions for
Q4-FY24 as compared to the prior year's period, as well as other
the risks and uncertainties set forth in the Company’s Annual
Report on Form 10-K for the year ended September 30, 2023, and our
subsequent quarterly reports:
Potential Impacts to GMV, Revenue, Segment
Direct Profits, and ratios calculated using these metrics
- fluctuations in the mix of purchase
and consignment transactions. Generally, when the mix of purchase
transactions increases, revenue as a percent of GMV increases,
while segment direct profit as a percentage of revenue decreases.
When the mix of consignment transactions increases, revenue as a
percent of GMV decreases, while segment direct profit as a
percentage of revenue increases;
- variability in the inventory
product mix handled by our RSCG segment, which can cause a change
in revenues and/or segment direct profit as a percentage of
revenue;
- real estate transactions in our
GovDeals segment can be subject to significant variability due to
changes that include postponements or cancellations of scheduled or
expected auction events and the value of properties to be included
in the auction event;
- continued variability in project
size and timing within our CAG segment;
- continued growth and expansion
resulting from the continuing acceleration of broader market
adoption of the digital economy, particularly in our GovDeals and
RSCG seller accounts and programs, including the execution by RSCG
on its business plans for AllSurplus Deals and its expanded
direct-to-consumer marketplace;
- changes in economic or political
conditions could impact our current or prospective buyers' and
sellers' priorities and cause variability in our operating
results;
Potential Impacts to Operating Expenses
- continued R&D spending to
support omni-channel behavioral marketing, analytics, and
buyer/seller payment optimization;
- spending in business development
activities to capture market opportunities, targeting efficient
payback periods;
- changes in our financial
performance could cause fluctuations in the amount of stock
compensation expense recognized for performance-based awards;
Potential Impacts to GAAP Net Income and EPS and
Non-GAAP Adjusted Net Income and Adjusted EPS
- our FY24 annual effective tax rate
(ETR) is expected to range from approximately 26% to 32%. This
range excludes any potential impacts from legislative changes to
U.S. corporate tax rates that may be enacted; and potential impacts
from items that have limited visibility and can be highly variable,
including effects of stock compensation due to participant exercise
activity and changes in our stock price. We are expecting an
increase in cash paid for income taxes starting in Q4-FY24 as our
remaining net operating loss carryforward position is used;
and
- our diluted weighted average number
of shares outstanding is expected to be approximately 31.5 to 32.0
million. As of June 30, 2024, we have $7.6 million in remaining
authorization to repurchase shares of our common stock.
Reconciliation of GAAP to Non-GAAP
Measures
Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA.
Non-GAAP EBITDA is a supplemental non-GAAP financial measure and is
equal to Net Income plus interest and other income, net; provision
for income taxes; and depreciation and amortization. Our definition
of Non-GAAP Adjusted EBITDA differs from Non-GAAP EBITDA because we
further adjust Non-GAAP EBITDA for stock compensation expense,
acquisition costs such as transaction expenses and changes in
earn-out estimates, business realignment expenses, litigation
settlement expenses that are not expected to reoccur, and goodwill,
long-lived and other non-current asset impairment. A reconciliation
of Net Income to Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA is as
follows:
|
Three Months Ended June 30, |
|
|
Nine Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net income |
$ |
6,000 |
|
|
$ |
6,487 |
|
|
$ |
13,616 |
|
|
$ |
14,698 |
|
Interest and other income, net1 |
|
(891 |
) |
|
|
(761 |
) |
|
|
(2,803 |
) |
|
|
(1,698 |
) |
Provision for income taxes |
|
2,702 |
|
|
|
2,543 |
|
|
|
5,071 |
|
|
|
5,265 |
|
Depreciation and amortization |
|
3,199 |
|
|
|
2,866 |
|
|
|
9,297 |
|
|
|
8,433 |
|
Non-GAAP EBITDA |
$ |
11,010 |
|
|
$ |
11,135 |
|
|
$ |
25,181 |
|
|
$ |
26,698 |
|
Stock compensation expense |
|
2,617 |
|
|
|
2,195 |
|
|
|
7,208 |
|
|
|
6,216 |
|
Acquisition-related costs and litigation settlement expense2 |
|
1,080 |
|
|
|
— |
|
|
|
1,657 |
|
|
|
183 |
|
Non-GAAP Adjusted EBITDA |
$ |
14,707 |
|
|
$ |
13,330 |
|
|
$ |
34,046 |
|
|
$ |
33,097 |
|
1 Interest and other income, net, per the
Consolidated Statements of Operations, excluding the non-service
components of net periodic pension cost (benefit). 2
Acquisition-related costs are included in other operating expenses
(income), net on Consolidated Statement of Operations. Litigation
settlement expense reflects significant legal settlements not
expected to reoccur and are included in general and administrative
expense on the Consolidated Statement of Operations.
Non-GAAP Adjusted Net Income and Non-GAAP
Adjusted Basic and Diluted Earnings Per Share. Non-GAAP Adjusted
Net Income is a supplemental non-GAAP financial measure and is
equal to Net Income plus stock compensation expense, amortization
of intangible assets, acquisition related costs such as transaction
expenses and changes in earn-out estimates, business realignment
expenses, litigation settlement expenses that are not expected to
reoccur, goodwill, long-lived and other non-current asset
impairments, and the estimated impact of income taxes on these
non-GAAP adjustments as well as non-recurring tax adjustments.
Non-GAAP Adjusted Basic and Diluted Income Per Share are determined
using Non-GAAP Adjusted Net Income. For Q3-FY24 and Q3-FY23, the
tax rates used to estimate the impact of income taxes on the
non-GAAP adjustments was 27% based upon the GAAP effective tax
rates for each period. A reconciliation of Net Income to Non-GAAP
Adjusted Net Income and Non-GAAP Adjusted Basic and Diluted Income
Per Share is as follows:
|
Three Months Ended June 30, |
|
|
Nine Months Ended June 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Net income |
$ |
6,000 |
|
|
$ |
6,487 |
|
|
$ |
13,616 |
|
|
$ |
14,698 |
|
Stock compensation expense |
|
2,617 |
|
|
|
2,195 |
|
|
|
7,208 |
|
|
|
6,216 |
|
Intangible asset amortization |
|
1,084 |
|
|
|
981 |
|
|
|
3,013 |
|
|
|
2,945 |
|
Acquisition-related costs and litigation settlement expense* |
|
1,080 |
|
|
|
— |
|
|
|
1,657 |
|
|
|
183 |
|
Income tax impact on the adjustment items |
|
(1,291 |
) |
|
|
(857 |
) |
|
|
(3,207 |
) |
|
|
(2,523 |
) |
Non-GAAP Adjusted net income |
$ |
9,490 |
|
|
$ |
8,806 |
|
|
$ |
22,287 |
|
|
$ |
21,519 |
|
Non-GAAP Adjusted basic earnings per common share |
$ |
0.31 |
|
|
$ |
0.29 |
|
|
$ |
0.73 |
|
|
$ |
0.69 |
|
Non-GAAP Adjusted diluted earnings per common share |
$ |
0.30 |
|
|
$ |
0.28 |
|
|
$ |
0.70 |
|
|
$ |
0.67 |
|
Basic weighted average shares outstanding |
|
30,388,675 |
|
|
|
30,605,963 |
|
|
|
30,497,820 |
|
|
|
31,243,979 |
|
Diluted weighted average shares outstanding |
|
31,464,461 |
|
|
|
31,513,488 |
|
|
|
31,617,578 |
|
|
|
32,193,239 |
|
* Acquisition-related costs are included in
other operating expenses (income), net on Consolidated Statement of
Operations. Litigation settlement expense reflects significant
legal settlements not expected to reoccur and are included in
general and administrative expense on the Consolidated Statement of
Operations.
Conference Call Details
The Company will host a conference call to
discuss these results at 10:30 a.m. Eastern Time today. Investors
and other interested parties may access the teleconference by
registering here to receive the dial-in number and unique
conference pin. A live listen-only webcast of the conference call
will be provided on the Company's investor relations website at
https://investors.liquidityservices.com. An archive of the web cast
will be available on the Company's website until August 8, 2025 at
11:59 p.m. Eastern Time. The replay will be available starting at
1:30 p.m. Eastern Time on the day of the call.
Non-GAAP Measures
To supplement our consolidated financial
statements presented in accordance with generally accepted
accounting principles (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 (Loss)
and Adjusted Earnings (Loss) 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.
Adjusted Earnings (Loss) per Share is the result of our Adjusted
Net Income (Loss) and diluted shares outstanding.
We prepare Non-GAAP Adjusted EBITDA by
eliminating from Non-GAAP EBITDA the impact of items that we do not
consider indicative of our core operating performance. You are
encouraged to evaluate these adjustments and the reasons we
consider them appropriate for supplemental analysis. As an
analytical tool, Non-GAAP Adjusted EBITDA is subject to all of the
limitations applicable to Non-GAAP EBITDA. Our presentation of
Non-GAAP Adjusted EBITDA should not be construed as an implication
that our future results will be unaffected by unusual or
non-recurring items.
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 GAAP, 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.
We do not quantitatively reconcile our guidance
ranges for our non-GAAP measures to their most comparable GAAP
measures in the Business Outlook section of this press release. The
guidance ranges for our GAAP and non-GAAP financial measures
reflect our assessment of potential sources of variability in our
financial results and are informed by our evaluation of multiple
scenarios, many of which have interactive effects across several
financial statement line items. Providing guidance for individual
reconciling items between our non-GAAP financial measures and the
comparable GAAP measures would imply a degree of precision and
certainty in those reconciling items that is not a consistent
reflection of our scenario-based process to prepare our guidance
ranges. To the extent that a material change affecting the
individual reconciling items between the Company’s forward-looking
non-GAAP and comparable GAAP financial measures is anticipated, the
Company has provided qualitative commentary in the Business Outlook
section of this press release for your consideration. However, as
the impact of such factors cannot be predicted with a reasonable
degree of certainty or precision, a quantitative reconciliation is
not available without unreasonable effort.
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 seller and buyer 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 GAAP, 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; expected future results; expected future
effective tax rates; and trends and assumptions about future
periods. 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. Our business is subject to a
number of risks and uncertainties, and our past performance is no
guarantee of our performance in future periods. 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 several risks and uncertainties that
could cause our actual results to differ materially from the
forward-looking statements 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 ability to source sufficient assets from sellers to attract and
retain active professional buyers; our need to successfully react
to the increasing importance of mobile commerce and the increasing
environmental and social impact aspects of e-commerce in an
increasingly competitive environment for our business, including
not only risks of disintermediation of our e-commerce services by
our competitors but also by our buyers and sellers; our ability to
timely upgrade and develop our technology systems, infrastructure
and marketing and customer service capabilities at reasonable cost
while maintaining site stability and performance to allow our
operations to grow in both size and scope; our ability to attract,
retain and develop the skilled employees that we need to support
our business; retail clients investing in their warehouse
operations capacity to handle higher volumes of online returns,
resulting in retailers sending the Company a reduced volume of
returns merchandise or sending us a product mix lower in value due
to the removal of high value returns; system interruptions that
could affect our websites or our transaction systems and impair the
services we provide to our sellers and buyers; our ability to
maintain the privacy and security of personal and business
information amidst multiplying threat landscapes and in compliance
with privacy and data protection regulations globally; the numerous
factors that influence the supply of and demand for used
merchandise, equipment and surplus assets; political, business,
economic and other conditions in local, regional and global
sectors; the operations of customers, project size and timing of
auctions, operating costs, and general economic conditions; our
ability to integrate acquired companies, and execute on anticipated
business plans such as the efforts underway with local and state
governments to advance legislation that allows for online auctions
for foreclosed and tax foreclosed real estate; the continuing
impacts of geopolitical events, including armed conflicts in
Ukraine, in and adjacent to Israel, and elsewhere; and impacts from
escalating interest rates and inflation on the our operations; the
numerous government regulations of e-commerce and other services,
competition, and restrictive governmental actions; the supply of,
demand for or market values of surplus assets, such as shortages in
supply of used vehicles; and other the risks and uncertainties set
forth in the Company’s Annual Report on Form 10-K for the year
ended September 30, 2023, and our subsequent quarterly reports, all
of which are available on the SEC and Company websites. There may
be other factors of which we are currently unaware or which we 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 (NASDAQ:LQDT) operates the
world's largest B2B e-commerce marketplace platform for surplus
assets with over $10 billion in completed transactions to more than
five million qualified buyers and 15,000 corporate and government
sellers worldwide. The company supports its clients' sustainability
efforts by helping them extend the life of assets, prevent
unnecessary waste and carbon emissions, and reduce the number of
products headed to landfills.
Contact: Investor Relations
investorrelations@liquidityservicesinc.com
|
Liquidity Services and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
(Dollars in Thousands, Except Par Value) |
|
|
|
June 30,2024 |
|
|
September 30,2023 |
|
|
|
(Unaudited) |
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
130,312 |
|
|
$ |
110,281 |
|
Short-term investments |
|
|
6,486 |
|
|
|
7,891 |
|
Accounts receivable, net of allowance for doubtful accounts of
$1,710 and $1,424 |
|
|
8,823 |
|
|
|
7,848 |
|
Inventory, net |
|
|
13,275 |
|
|
|
11,116 |
|
Prepaid taxes and tax refund receivable |
|
|
1,650 |
|
|
|
1,783 |
|
Prepaid expenses and other current assets |
|
|
12,679 |
|
|
|
7,349 |
|
Total current assets |
|
|
173,225 |
|
|
|
146,268 |
|
Property and equipment, net |
|
|
17,047 |
|
|
|
17,156 |
|
Operating lease assets |
|
|
13,289 |
|
|
|
9,888 |
|
Intangible assets, net |
|
|
14,860 |
|
|
|
12,457 |
|
Goodwill |
|
|
97,565 |
|
|
|
89,388 |
|
Deferred tax assets |
|
|
2,733 |
|
|
|
7,050 |
|
Other assets |
|
|
6,819 |
|
|
|
6,762 |
|
Total assets |
|
$ |
325,538 |
|
|
$ |
288,970 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
40,877 |
|
|
$ |
39,115 |
|
Accrued expenses and other current liabilities |
|
|
27,803 |
|
|
|
23,809 |
|
Current portion of operating lease liabilities |
|
|
5,213 |
|
|
|
4,101 |
|
Deferred revenue |
|
|
4,905 |
|
|
|
4,701 |
|
Payables to sellers |
|
|
64,453 |
|
|
|
48,992 |
|
Total current liabilities |
|
|
143,251 |
|
|
|
120,718 |
|
Operating lease liabilities |
|
|
10,226 |
|
|
|
6,581 |
|
Other long-term liabilities |
|
|
91 |
|
|
|
137 |
|
Total liabilities |
|
|
153,568 |
|
|
|
127,436 |
|
Commitments and contingencies (Note 13) |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Common stock, $0.001 par value; 120,000,000 shares authorized;
36,525,606 shares issued and outstanding at June 30, 2024;
36,142,346 shares issued and outstanding at September 30, 2023 |
|
|
36 |
|
|
|
36 |
|
Additional paid-in capital |
|
|
271,825 |
|
|
|
265,945 |
|
Treasury stock, at cost; 5,997,932 shares at June 30, 2024, and
5,433,045 shares at September 30, 2023 |
|
|
(93,482 |
) |
|
|
(84,031 |
) |
Accumulated other comprehensive loss |
|
|
(10,067 |
) |
|
|
(10,457 |
) |
Retained earnings (accumulated deficit) |
|
|
3,658 |
|
|
|
(9,958 |
) |
Total stockholders’ equity |
|
|
171,970 |
|
|
|
161,533 |
|
Total liabilities and stockholders’ equity |
|
$ |
325,538 |
|
|
$ |
288,970 |
|
|
Liquidity Services and Subsidiaries
Unaudited Condensed Consolidated Statements of
Operations (Dollars in Thousands, Except Per Share
Data) |
|
|
|
Three Months Ended June 30, |
|
|
Nine Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Purchase revenues |
|
$ |
53,396 |
|
|
$ |
42,809 |
|
|
$ |
142,726 |
|
|
$ |
128,715 |
|
Consignment and other fee revenues |
|
|
40,217 |
|
|
|
37,961 |
|
|
$ |
113,665 |
|
|
|
105,790 |
|
Total revenue |
|
|
93,613 |
|
|
|
80,770 |
|
|
|
256,391 |
|
|
|
234,505 |
|
Costs and expenses from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold (excludes depreciation and amortization) |
|
|
44,212 |
|
|
|
35,201 |
|
|
|
119,960 |
|
|
|
107,340 |
|
Technology and operations |
|
|
15,372 |
|
|
|
13,927 |
|
|
|
45,136 |
|
|
|
43,423 |
|
Sales and marketing |
|
|
13,759 |
|
|
|
13,068 |
|
|
|
40,934 |
|
|
|
35,712 |
|
General and administrative |
|
|
8,603 |
|
|
|
7,454 |
|
|
|
23,846 |
|
|
|
21,243 |
|
Depreciation and amortization |
|
|
3,199 |
|
|
|
2,866 |
|
|
|
9,297 |
|
|
|
8,433 |
|
Other operating expenses (income), net |
|
|
573 |
|
|
|
(1 |
) |
|
|
1,080 |
|
|
|
128 |
|
Total costs and expenses |
|
|
85,718 |
|
|
|
72,515 |
|
|
|
240,253 |
|
|
|
216,279 |
|
Income from operations |
|
|
7,895 |
|
|
|
8,255 |
|
|
|
16,138 |
|
|
|
18,226 |
|
Interest and other income, net |
|
|
(807 |
) |
|
|
(775 |
) |
|
|
(2,549 |
) |
|
|
(1,737 |
) |
Income before provision for income taxes |
|
|
8,702 |
|
|
|
9,030 |
|
|
|
18,687 |
|
|
|
19,963 |
|
Provision for income taxes |
|
|
2,702 |
|
|
|
2,543 |
|
|
|
5,071 |
|
|
|
5,265 |
|
Net income |
|
$ |
6,000 |
|
|
$ |
6,487 |
|
|
$ |
13,616 |
|
|
$ |
14,698 |
|
Basic income per common share |
|
$ |
0.20 |
|
|
$ |
0.21 |
|
|
$ |
0.45 |
|
|
$ |
0.47 |
|
Diluted income per common share |
|
$ |
0.19 |
|
|
$ |
0.21 |
|
|
$ |
0.43 |
|
|
$ |
0.46 |
|
Basic weighted average shares outstanding |
|
|
30,388,675 |
|
|
|
30,605,963 |
|
|
|
30,497,820 |
|
|
|
31,243,979 |
|
Diluted weighted average shares outstanding |
|
|
31,464,461 |
|
|
|
31,513,488 |
|
|
|
31,617,578 |
|
|
|
32,193,239 |
|
|
Liquidity Services and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash
Flows (Dollars in Thousands) |
|
|
|
Nine Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
Operating activities |
|
|
|
|
|
|
Net income |
|
$ |
13,616 |
|
|
$ |
14,698 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
9,297 |
|
|
|
8,433 |
|
Stock compensation expense |
|
|
7,208 |
|
|
|
6,023 |
|
Inventory adjustment to net realizable value |
|
|
163 |
|
|
|
859 |
|
Provision for doubtful accounts |
|
|
733 |
|
|
|
519 |
|
Deferred tax expense |
|
|
4,318 |
|
|
|
4,556 |
|
Gain on disposal of property and equipment |
|
|
(30 |
) |
|
|
(60 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(1,599 |
) |
|
|
5,209 |
|
Inventory |
|
|
(2,286 |
) |
|
|
(1,636 |
) |
Prepaid taxes and tax refund receivable |
|
|
134 |
|
|
|
(135 |
) |
Prepaid expenses and other assets |
|
|
(5,521 |
) |
|
|
(2,117 |
) |
Operating lease assets and liabilities |
|
|
1,353 |
|
|
|
(207 |
) |
Accounts payable |
|
|
1,549 |
|
|
|
2,496 |
|
Accrued expenses and other current liabilities |
|
|
3,795 |
|
|
|
(2,762 |
) |
Deferred revenue |
|
|
204 |
|
|
|
261 |
|
Payables to sellers |
|
|
15,281 |
|
|
|
(3,653 |
) |
Other liabilities |
|
|
— |
|
|
|
(128 |
) |
Net cash provided by operating activities |
|
|
48,215 |
|
|
|
32,356 |
|
Investing activities |
|
|
|
|
|
|
Cash paid for business acquisitions, net of cash acquired |
|
|
(13,265 |
) |
|
|
— |
|
Purchases of property and equipment, including capitalized
software |
|
|
(6,065 |
) |
|
|
(3,905 |
) |
Purchase of short-term investments |
|
|
(2,264 |
) |
|
|
(5,603 |
) |
Maturities of short-term investments |
|
|
3,888 |
|
|
|
— |
|
Other investing activities, net |
|
|
60 |
|
|
|
58 |
|
Net cash used in investing activities |
|
|
(17,646 |
) |
|
|
(9,450 |
) |
Financing activities |
|
|
|
|
|
|
Common stock repurchases |
|
|
(9,426 |
) |
|
|
(21,198 |
) |
Taxes paid associated with net settlement of stock compensation
awards |
|
|
(1,455 |
) |
|
|
(1,060 |
) |
Payments of the principal portion of finance lease liabilities |
|
|
(72 |
) |
|
|
(75 |
) |
Proceeds from exercise of stock options, net of tax |
|
|
128 |
|
|
|
496 |
|
Net cash used in financing activities |
|
|
(10,825 |
) |
|
|
(21,837 |
) |
Effect of exchange rate differences on cash and cash
equivalents |
|
|
287 |
|
|
|
956 |
|
Net decrease in cash and cash equivalents |
|
|
20,031 |
|
|
|
2,025 |
|
Cash and cash equivalents at beginning of period |
|
|
110,281 |
|
|
|
96,122 |
|
Cash and cash equivalents at end of period |
|
$ |
130,312 |
|
|
$ |
98,147 |
|
Supplemental disclosure of cash flow
information |
|
|
|
|
|
|
Cash paid for income taxes, net |
|
$ |
810 |
|
|
$ |
975 |
|
Non-cash: Common stock surrendered in the exercise of stock
options |
|
|
— |
|
|
|
191 |
|
Liquidity Services (NASDAQ:LQDT)
過去 株価チャート
から 9 2024 まで 10 2024
Liquidity Services (NASDAQ:LQDT)
過去 株価チャート
から 10 2023 まで 10 2024