Liquidity Services, Inc. (NASDAQ: LQDT; www.liquidityservicesinc.com) today announced certain preliminary financial results for its third quarter fiscal year 2013 ended June 30, 2013.
Liquidity Services expects to report Gross Merchandise Volume (GMV) of $228 million to $231 million, which is lower than the Company’s previous expectations of $250 million to $275 million. Adjusted EBITDA, which excludes stock based compensation and acquisition costs, is expected to be $26 million to $27 million compared to the Company’s previous expectations of $29 million to $32 million. The Company also expects adjusted diluted earnings per share of $0.43 to $0.45 compared to previous expectations of $0.49 to $0.54.
As a result of the lower than expected third quarter results, the Company expects to lower its fiscal year 2013 guidance for GMV, Adjusted EBITDA and Adjusted EPS. The updated guidance will be provided on the earnings call on August 7, 2013.
Results were impacted by lower than expected GMV in the Company’s capital assets and retail supply chain verticals as a result of lower product flows from existing clients and slower than expected rollout of new client programs. “While our preliminary GMV results for Q3-FY13 and the impact on our Adjusted EBITDA and Adjusted EPS results were disappointing and below our expectations, our emphasis has been on profitable growth and we have made good progress with the integration of our GoIndustry acquisition, which is now operating at near breakeven. Overall margins in our business remain strong; we expect to report that adjusted EBITDA margins increased to approximately 11.5% in the third quarter from 11.3% in the second quarter primarily as a result of sharper focus and streamlined operations,” said Bill Angrick, Chairman and CEO of Liquidity Services. “The lower than expected top line results during the quarter were driven by delays in new programs, weaker volumes in the consumer electronics sector and the continued repositioning of the GoIndustry marketplace to focus on the key global Fortune 1000 relationships that we expect will drive sustained profitable growth in this business.”