Liquidity Services Q3 2022 Earnings Report
Key Takeaways
Liquidity Services announced strong Q3 fiscal year 2022 financial results, with a record Gross Merchandise Volume (GMV) of $325.0 million, up 33% year-over-year. GAAP Net Income increased to $16.4 million, and GAAP Diluted EPS rose to $0.50. The company's cash balance stands at $88.3 million with zero debt.
Gross Merchandise Volume (GMV) reached a record $325.0 million, a 33% increase year-over-year.
GAAP Net Income was $16.4 million, up $8.0 million from the previous year, with GAAP Diluted EPS at $0.50, up $0.26.
Non-GAAP Adjusted EBITDA was $11.9 million, and Non-GAAP Adjusted Diluted EPS was $0.21.
The company maintains a strong cash position with $88.3 million and zero debt, and repurchased $5.4 million of shares during the quarter.
Liquidity Services
Liquidity Services
Forward Guidance
The company expects GMV to range from $300 million to $330 million. GAAP Net Income is expected to range from $3.5 million to $6.5 million. GAAP Diluted Earnings Per Share are expected to range from $0.10 to $0.19. Non-GAAP Adjusted EBITDA is expected to range from $10.0 million to $13.0 million. Non-GAAP Adjusted Earnings Per Diluted Share is expected to range from $0.18 to $0.27 for Q4-FY22.
Positive Outlook
- Strong buyer demand for heavy equipment, vehicles, and industrial manufacturing equipment globally.
- Expertise in diverse sectors, a broad buyer base, and global reach provide key advantages to clients.
- New real estate category and technology-led solutions are expected to drive further market penetration.
- RSCG is expected to be a key resource for retailers managing inflation and excess inventories.
- CAG is expected to show year-over-year growth, including completion of a significant international industrial partner purchase transaction.
Challenges Ahead
- Global supply chains continue to experience heightened disruptions that could adjust the volume and timing of assets made available for sale.
- GovDeals' seasonality may result in a GMV decline sequentially from its seasonally high third quarter.
- Potential lower volumes and pricing of used vehicles may impact GovDeals' performance.
- RSCG may face product source and mix changes that could result in lower segment gross profit as a percentage of total revenue.
- An increased effective tax rate is expected to impact GAAP net income and EPS.