Liquidity Services, Inc. (NASDAQ:LQDT) today reported its financial results for its second quarter of fiscal year 2014 (Q2-14) ended March 31, 2014. Liquidity Services, Inc. is a global solution provider in the reverse supply chain with the leading marketplace for business surplus.
Liquidity Services, Inc. (Liquidity Services or the Company) reported consolidated Q2-14 revenue of $128.3 million, a decrease of approximately 1.5% from 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 Q2-14 was $16.7 million, a decrease of approximately 43% from the prior year’s comparable period. Q2-14 GMV, the total sales volume of all merchandise sold through the Company’s marketplaces, was $227.2 million, a decrease of 12% from the prior year’s comparable period.
Net income in Q2-14 was $5.6 million or $0.17 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 Q2-14 was $8.5 million or $0.26 adjusted diluted earnings per share based on 32.3 million fully diluted shares outstanding, a decrease of approximately 56% and 46%, respectively, from the prior year’s comparable period. During Q2-14, the Company repurchased 128,566 shares of common stock expending $3.1 million as part of its previously announced share repurchase program.
“While GMV was within our expected results, our Adjusted EBITDA and Adjusted EPS were lower than expected due to mix changes in our DoD surplus and retail businesses and delayed capital asset projects in both the U.S. and Europe. We also experienced unusual softness in our energy vertical due to an industry wide decline in line pipe and related equipment,” said Bill Angrick, Chairman and CEO of Liquidity Services.