Liquidity Services, Inc. (NASDAQ: LQDT;
) today reported its financial results for its first quarter of fiscal year 2014 (Q1-14) ended December 31, 2013. 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 Q1-14 revenue of $121.9 million, consistent with the prior year’s comparable period. Adjusted EBITDA, which excludes stock based compensation and acquisition costs including changes in acquisition earn out payment estimates, for Q1-14 was $20.0 million, a decrease of approximately 17% from the prior year’s comparable period. Q1-14 GMV, the total sales volume of all merchandise sold through the Company’s marketplaces, was $234.4 million, consistent with the prior year’s comparable period.
Net income in Q1-14 was $7.1 million or $0.22 diluted earnings per share. Adjusted net income, which excludes stock based compensation, acquisition costs including changes in acquisition earn out payment estimates and amortization of contract-related intangible assets associated with the Jacobs Trading acquisition – net of tax, in Q1-14 was $10.4 million or $0.32 adjusted diluted earnings per share based on 32.7 million fully diluted shares outstanding, a decrease of approximately 24% and 22%, respectively, from the prior year’s comparable period.
“Liquidity Services generated better than expected financial results in Q1-14 driven by strong topline performance in our retail supply chain and municipal government businesses. Our retail supply chain business saw sequential growth in GMV as we helped more OEM and retail clients create strategic value in the secondary market for consumer goods through our marketplace channels and service offering. These results were partially offset by a sharp decline in our DoD Surplus business due to changing property mix which has impacted margins,” said Bill Angrick, Chairman and CEO of Liquidity Services. “During the quarter, we continued to expand our GovDeals municipal government business in both the U.S. and Canada driven by agencies’ desire for more transparency, convenience and value in the sale of surplus assets. We also continued to invest in extending our technology platform, buyer liquidity and marketplace data with existing and new clients to unlock new opportunities during the quarter as our clients seek greater strategic value from the reverse supply chain. We believe our continued investment in innovation and strong client service positions us well to drive long term shareholder value.”