WASHINGTON--(BUSINESS WIRE)--Jul. 10, 2014--
Liquidity Services, Inc. (NASDAQ:LQDT), a global solutions provider in
the reverse supply chain with the leading marketplace for business
surplus, today announced that its sales of selected rolling stock and
other assets under its Surplus Contract with the U.S. Defense Logistics
Agency (DLA) have ceased at the request of DLA pending further review of
the impact of regulatory rules, unrelated to the Company’s performance
or conduct, on the DLA rolling stock property stream. This action has
resulted in the cancellation of selected sales during the June quarter
as well as future sales of selected assets. Liquidity Services
anticipates these developments will adversely impact its financial
results for its fiscal third quarter ended June 30, 2014 and for its
fiscal year 2014. The Company’s preliminary third quarter results are
subject to change as the Company is still in the process of finalizing
the financial results for the quarter.
For the third quarter of fiscal year 2014 ending June 30, 2014, the
Company now estimates its preliminary unaudited financial results to be
as follows:
-
Total Gross Merchandise Volume (GMV) is expected to be within its
guidance range of $225 million to $250 million.
-
Adjusted EBITDA is expected to be approximately 10-20% below its
guidance range of $18.0 million to $21.0 million
-
Adjusted Earnings per Diluted Share is expected to be approximately
10-20% below its guidance range of $0.28 to $0.34.
The Company plans to report its unaudited financial results for the
third quarter on August 7, 2014, and at that time will provide updated
guidance on the impact to its fiscal year 2014 financial results.
Our guidance adjusts EBITDA and Diluted EPS for: (i) acquisition costs
including transaction costs and changes in earn out estimates; (ii)
amortization of contract related intangible assets of $33.3 million from
our acquisition of Jacobs Trading; and (iii) for stock based
compensation costs, which we estimate to be approximately $3.5 million
to $4.0 million per quarter for fiscal year 2014. These stock based
compensation costs are consistent with fiscal year 2013.
Conference Call
The Company will host a conference call to discuss preliminary fiscal
third quarter results at 8:30 a.m. Eastern Time today. Investors and
other interested parties may access the teleconference by dialing
800-798-2864 or 617-614-6206 and providing the participant pass code
78208751. A live webcast of the conference call will be provided on the
Company’s investor relations website at http://www.liquidityservicesinc.com/investors/.
A replay of the webcast will be available on the Company’s website
ending July 10, 2015 at 11:59 p.m. ET. An audio replay of the
teleconference will also be available until July 17, 2014 at 11:59 p.m.
ET. To listen to the replay, dial 888-286-8010 or 617-801-6888 and
provide the participant pass code 87329825. Both replays will be
available starting at 12:30 p.m. ET today.
Forward-Looking Statements
This document contains forward-looking statements made pursuant to the
Private Securities Litigation Reform Act of 1995. These statements are
only predictions. The outcome of the events described in these
forward-looking statements is subject to known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to differ materially
from any future results, levels of activity, performance or achievements
expressed or implied by these forward-looking statements. These
statements include, but are not limited to, statements regarding the
Company’s business outlook and expected future effective tax rates. You
can identify forward-looking statements by terminology such as "may,"
"will," "should," "could," "would," "expects," "intends," "plans,"
"anticipates," "believes," "estimates," "predicts," "potential,"
"continues" or the negative of these terms or other comparable
terminology. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future
results, levels of activity, performance or achievements.
There are a number of risks and uncertainties that could cause our
actual results to differ materially from the forward-looking statements
contained in this document. Important factors that could cause our
actual results to differ materially from those expressed as
forward-looking statements are set forth in our filings with the SEC
from time to time, and include, among others, our dependence on our
contracts with the DoD and Wal-Mart for a significant portion of our
revenue and profitability; our ability to successfully expand the supply
of merchandise available for sale on our online marketplaces; our
ability to attract and retain active professional buyers to purchase
this merchandise; the timing and success of upgrades to our technology
infrastructure; our ability to successfully complete the integration of
any acquired companies, including NESA and Go-Industry, into our
existing operations and our ability to realize any anticipated benefits
of these or other acquisitions; and our ability to recognize any
expected tax benefits as a result of closing our U.K. retail consumer
goods operations. There may be other factors of which we are currently
unaware or deem immaterial that may cause our actual results to differ
materially from the forward-looking statements.
All forward-looking statements attributable to us or persons acting on
our behalf apply only as of the date of this document and are expressly
qualified in their entirety by the cautionary statements included in
this document. Except as may be required by law, we undertake no
obligation to publicly update or revise any forward-looking statement to
reflect events or circumstances occurring after the date of this
document or to reflect the occurrence of unanticipated events.
About Liquidity Services, Inc.
Liquidity Services, Inc. (NASDAQ:LQDT) provides leading corporations,
public sector agencies and buying customers the world's most
transparent, innovative and effective online marketplaces and integrated
services for surplus assets. On behalf of its clients, Liquidity
Services has completed the sale of over $4.5 billion of surplus,
returned and end-of-life assets, in over 500 product categories,
including consumer goods, capital assets and industrial equipment. The
Company is based in Washington, D.C. and has over 1,300 employees.
Additional information can be found at: http://www.liquidityservices.com.
Source: Liquidity Services, Inc.
Liquidity Services, Inc.
Julie Davis, 202-558-6234
julie.davis@liquidityservices.com
