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SEC Filings

10-Q
LIQUIDITY SERVICES INC filed this Form 10-Q on 08/07/2015
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Table of Contents

 

Liquidity Services, Inc. and Subsidiaries
Notes to the Unaudited Consolidated Financial Statements — (Continued)

 

Accounts Receivable

 

Accounts receivable are recorded at the invoiced amount and are non-interest bearing. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. Allowances are based on management’s judgment, which considers historical experience and specific knowledge of accounts where collectability may not be probable. The Company makes provisions based on historical bad debt experience, a specific review of all significant outstanding invoices and an assessment of general economic conditions.

 

Earnings per Share

 

Basic net income attributable to common stockholders per share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted net income attributable to common stockholders per share includes the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The Company had 2,440,475 and 1,901,976 unvested restricted shares outstanding at June 30, 2015 and 2014, respectively, which were issued at prices ranging from $7.48 to $52.55, of which 1,870,472 and 1,870,472, and 401,753 and 254,855 shares have been excluded in the calculation of diluted income per share for the three and nine months ended June 30, 2015 and 2014, respectively, due to the difference between the issuance price and the average market price for the reporting period.  The Company has also excluded the following stock options in its calculation of diluted income per share because the option exercise prices were greater than the average market prices for the applicable period:

 

(a)                   for the three months ended June 30, 2015, 1,270,590 options;

 

(b)                   for the nine months ended June 30, 2015, 1,270,590 options;

 

(c)                    for the three months ended June 30, 2014, 754,994 options; and

 

(d)                   for the nine months ended June 30, 2014, 574,477 options.

 

The following summarizes the potential outstanding common stock of the Company as of the dates set forth below:

 

 

 

Three Months Ended June 30,

 

Nine Months Ended June 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

 

 

(unaudited)

 

 

 

(dollars in thousands, except per share amounts)

 

Weighted average shares calculation:

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

30,011,121

 

30,937,394

 

29,975,239

 

31,770,490

 

Treasury stock effect of options and restricted stock

 

 

 

 

123,022

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding

 

30,011,121

 

30,937,394

 

29,975,239

 

31,893,512

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,615

 

$

18,373

 

$

(61,120

)

$

31,097

 

Basic earnings (loss) per common share

 

$

0.05

 

$

0.59

 

$

(2.04

)

$

0.98

 

Diluted earnings (loss) per common share

 

$

0.05

 

$

0.59

 

$

(2.04

)

$

0.98

 

 

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