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SEC Filings

10-Q
LIQUIDITY SERVICES INC filed this Form 10-Q on 02/06/2015
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Table of Contents

 

Our management uses EBITDA and adjusted EBITDA:

 

·                                          as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis as they remove the impact of items not directly resulting from our core operations;

 

·                                          for planning purposes, including the preparation of our internal annual operating budget;

 

·                                          to allocate resources to enhance the financial performance of our business;

 

·                                          to evaluate the effectiveness of our operational strategies; and

 

·                                          to evaluate our capacity to fund capital expenditures and expand our business.

 

EBITDA and adjusted EBITDA as calculated by us are not necessarily comparable to similarly titled measures used by other companies. In addition, EBITDA and adjusted EBITDA: (a) do not represent net income or cash flows from operating activities as defined by GAAP; (b) are not necessarily indicative of cash available to fund our cash flow needs; and (c) should not be considered as alternatives to net income, income from operations, cash provided by operating activities or our other financial information as determined under GAAP.

 

We prepare adjusted EBITDA by adjusting EBITDA to eliminate 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, adjusted EBITDA is subject to all of the limitations applicable to EBITDA. Our presentation of adjusted EBITDA should not be construed as an implication that our future results will be unaffected by unusual or non-recurring items.

 

The table below reconciles net income to EBITDA and adjusted EBITDA for the periods presented.

 

 

 

Three Months
Ended December 31,

 

 

 

2014

 

2013

 

 

 

(In thousands)

 

 

 

(Unaudited)

 

Net (loss) income

 

$

(64,116

)

$

7,093

 

Interest and other expense, net

 

38

 

21

 

(Benefit) provision for income taxes

 

(20,918

)

4,729

 

Amortization of contract intangibles

 

1,211

 

2,407

 

Depreciation and amortization

 

1,992

 

2,004

 

 

 

 

 

 

 

EBITDA

 

(81,793

)

16,254

 

Stock compensation expense

 

2,602

 

3,659

 

Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets

 

96,238

 

95

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

17,047

 

$

20,008

 

 

23