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SEC Filings

10-Q
LIQUIDITY SERVICES INC filed this Form 10-Q on 05/08/2015
Entire Document
 

Table of Contents

 

Results of Operations

 

The following table sets forth, for the periods indicated, selected statement of operations data expressed as a percentage of revenue.

 

 

 

Three Months Ended
March 31,

 

Six Months Ended
March 31,

 

 

 

2015

 

2014

 

2015

 

2014

 

Revenue

 

100.0

%

100.0

%

100.0

%

100.0

%

Costs and expenses:

 

 

 

 

 

 

 

 

 

Cost of goods sold (excluding amortization)

 

41.4

 

42.3

 

42.5

 

40.7

 

Profit-sharing distributions

 

7.4

 

6.5

 

7.5

 

7.4

 

Technology and operations

 

24.0

 

22.6

 

22.6

 

21.9

 

Sales and marketing

 

10.5

 

8.1

 

9.3

 

8.1

 

General and administrative

 

11.1

 

9.7

 

9.2

 

9.9

 

Amortization of contract intangibles

 

 

1.8

 

0.5

 

1.8

 

Depreciation and amortization

 

1.9

 

1.5

 

1.8

 

1.6

 

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

 

 

0.1

 

42.2

 

0.1

 

 

 

 

 

 

 

 

 

 

 

Total costs and expenses

 

96.3

 

92.6

 

135.6

 

91.5

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

3.7

 

7.4

 

(35.6

)

8.5

 

Interest and other expense, net

 

(0.0

)

(0.1

)

(0.0

)

(0.0

)

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations before provision (benefit) for income taxes

 

3.7

 

7.3

 

(35.6

)

8.5

 

(Provision) benefit for income taxes

 

(2.4

)

(2.9

)

8.1

 

(3.4

)

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

1.3

%

4.4

%

(27.5

)%

5.1

%

 

Three Months Ended March 31, 2015 Compared to Three Months Ended March 31, 2014

 

Revenue.  Revenue decreased $25.4 million, or 19.8%, to $102.9 million for the three months ended March 31, 2015 from $128.3 million for the three months ended March 31, 2014, primarily due to (1) a 24.0% decrease, or $13.2 million, in our DoD marketplaces as we have ceased sales of rolling stock and continue to process more low value product; and (2) a 21.5% decrease, or $12.5 million, in our retail commercial marketplaces primarily as a result of the termination of the Wal-Mart Agreement.  These decreases were offset in part by a 12.3% increase, or $0.5 million, in our state and local government (GovDeals) marketplace.  The amount of gross merchandise volume decreased $37.8 million, or 16.6%, to $189.4 million for the three months ended March 31, 2015 from $227.2 million for the three months ended March 31, 2014, primarily due to (1) the decreases in our DoD marketplaces discussed above; (2) a 29.4% decrease, or $26.1 million, in our retail commercial marketplaces primarily as a result of the termination of the Wal-Mart Agreement; and (3) a 10.8%, or $4.8 million, decrease in our commercial capital assets marketplaces, which utilize the consignment model resulting in an immaterial effect on revenue.  These decreases were offset in part by a 16.2% increase, or $6.3 million, in our state and local government (GovDeals) marketplace.

 

Cost of goods sold (excluding amortization).  Cost of goods sold (excluding amortization) decreased $11.6 million, or 21.4%, to $42.7 million for the three months ended March 31, 2015 from $54.3 million for the three months ended March 31, 2014.  As a percentage of revenue, cost of goods sold (excluding amortization) decreased to 41.4% from 42.3%.  These decreases are primarily due to decreases in property flow in our retail commercial marketplaces as a result of the termination of the Wal-Mart Agreement.

 

Profit-sharing distributions.  Profit-sharing distributions decreased $0.7 million, or 8.9%, to $7.6 million for the three months ended March 31, 2015 from $8.3 million for the three months ended March 31, 2014, primarily as a result of a decline in the Scrap Contract sales.  As a percentage of revenue, profit-sharing distributions increased to 7.4% from 6.5%, primarily as a result of the 19.8% decrease in revenue as described above.

 

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