Liquidity Services, Inc. Announces Preliminary Fiscal Third Quarter 2013 Financial Results
Liquidity Services, Inc. (NASDAQ: LQDT; www.liquidityservicesinc.com) today announced certain preliminary financial results for its third quarter fiscal year 2013 ended June 30, 2013.
Liquidity Services expects to report Gross Merchandise Volume (GMV) of $228 million to $231 million, which is lower than the Company's previous expectations of $250 million to $275 million. Adjusted EBITDA, which excludes stock based compensation and acquisition costs, is expected to be $26 million to $27 million compared to the Company's previous expectations of $29 million to $32 million. The Company also expects adjusted diluted earnings per share of $0.43 to $0.45 compared to previous expectations of $0.49 to $0.54.
As a result of the lower than expected third quarter results, the Company expects to lower its fiscal year 2013 guidance for GMV, Adjusted EBITDA and Adjusted EPS. The updated guidance will be provided on the earnings call on August 7, 2013.
Results were impacted by lower than expected GMV in the Company's capital assets and retail supply chain verticals as a result of lower product flows from existing clients and slower than expected rollout of new client programs. “While our preliminary GMV results for Q3-FY13 and the impact on our Adjusted EBITDA and Adjusted EPS results were disappointing and below our expectations, our emphasis has been on profitable growth and we have made good progress with the integration of our GoIndustry acquisition, which is now operating at near breakeven. Overall margins in our business remain strong; we expect to report that adjusted EBITDA margins increased to approximately 11.5% in the third quarter from 11.3% in the second quarter primarily as a result of sharper focus and streamlined operations,” said Bill Angrick, Chairman and CEO of Liquidity Services. “The lower than expected top line results during the quarter were driven by delays in new programs, weaker volumes in the consumer electronics sector and the continued repositioning of the GoIndustry marketplace to focus on the key global Fortune 1000 relationships that we expect will drive sustained profitable growth in this business.”
“Fundamentally, we are confident in our competitive position and our ability to achieve attractive organic growth over the next several years driven by our strong client service and continued investments in innovation. However, in the short term, results have been less predictable and pressured due to significant integration efforts and the timing of new large programs coming on line in our retail supply chain vertical,” continued Angrick.
The Company will host a conference call to discuss preliminary fiscal third quarter results at 9:00 a.m. Eastern Time today. Investors and other interested parties may access the teleconference by dialing 877-703-6106 or 857-244-7305 and providing the participant pass code 77421523. A live webcast of the conference call will be provided on the Company's investor relations website at http://liquidityservicesinc.com. A replay of the webcast will be available on the Company's website for 30 calendar days ending August 15, 2013 at 11:59 p.m. ET. An audio replay of the teleconference will also be available until August 15, 2013 at 11:59 p.m. ET. To listen to the replay, dial 888 286.8010 or 617 801.6888 and provide pass code 33868197. Both replays will be available starting at 11:00 a.m. ET today.
Full Third Quarter Fiscal Year 2013 Financial Results
Liquidity Services will report the results of its third quarter on Wednesday, August 7, 2013 at 8:00 a.m. Eastern Time. Investors and other interested parties may access the teleconference by dialing 866-202-0886 or 617-213-8841 and providing the participant pass code 42835180. A live web cast of the conference call will be provided on the Company's investor relations website at www.liquidityservicesinc.com/investors.
An archive of the webcast will be available on the Company's website for 30 calendar days ending September 6, 2013 at 11:59 p.m. ET. An audio replay of the teleconference will also be available until September 6, 2013 at 11:59 p.m. ET. To listen to the replay, dial 888-286-8010 or 617-801-6888 and provide pass code 74058780. Both replays will be available starting at 12:30 p.m. on the day of the call.
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