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SEC Filings

10-Q
LIQUIDITY SERVICES INC filed this Form 10-Q on 02/06/2015
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Sales and marketing expenses.  Sales and marketing expenses increased $0.6 million, or 5.6%, to $10.4 million for the three months ended December 31, 2014 from $9.8 million for the three months ended December 31, 2013. As a percentage of revenue, sales and marketing expenses increased to 8.3% from 8.1%. These increases are primarily due to expenses of $0.6 million in marketing activities related to our re-branding initiative.

 

General and administrative expenses.  General and administrative expenses decreased $2.6 million, or 21.1%, to $9.5 million for the three months ended December 31, 2014 from $12.3 million for the three months ended December 31, 2013. As a percentage of revenue, general and administrative expenses decreased to 7.6% from 10.1%. These decreases are primarily due (1) a $1.4 million decrease in performance based compensation and staff wages as a result of our business realignment initiative; and (2) a $1.3 million decrease in our overhead expenses due to streamlining our GoIndustry global operations and lowering our external general and administrative expenses.

 

Amortization of contract intangibles.  Amortization of contract intangibles was primarily related to the contract intangible asset created in conjunction with the Jacobs Trading acquisition which was valued at $33.3 million and was being amortized over 55 months on a straight-line basis. Amortization of contract intangibles for the three months ended December 31, 2014 and December 31, 2013 was $1.2 million and $1.8 million, respectively. This decrease was primarily due to the write-off of the remaining unamortized expense related to the Jacobs Trading acquisition contract intangible asset due to the early termination of the Wal-Mart contract in December 2014.

 

Depreciation and amortization expenses.  Depreciation and amortization expenses were consistent at $2.0 million for the three months ended December 31, 2014 and 2013.

 

Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets.  Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets increased $96.1 million, or 96,100% to $96.2 million for the three months ended December 31, 2014 from $0.1 million for the three months ended December 31, 2013, due to the write-downs of impaired goodwill and the remaining unamortized expense related to the Jacobs Trading acquisition contract intangible asset due to the early termination of the Wal-Mart contract in December 2014.

 

Interest expense and other expense, net.  Interest expense and other expense, net was consistent at $0.0 million for the three months ended December 31, 2014 and 2013.

 

(Benefit) provision for income tax expense.  Income tax expense decreased $25.6 million, or 544.7%, to $20.9 million income tax benefit for the three months ended December 31, 2014 from $4.7 million income tax expense for the three months ended December 31, 2013, primarily due to the write-down of impaired goodwill and long-lived assets.

 

Net (loss) income.  Net income decreased $71.2 million, or 1,002.8%, to $64.1 million net loss for the three months ended December 31, 2014 from $7.1 million net income for the three months ended December 31, 2013, as a result of the write-down of impaired goodwill and long-lived assets.

 

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