Liquidity Services, Inc. · NASDAQ:LQDT
Liquidity Services — Q1 FY2015 Earnings Presentation
21 slides from Liquidity Services's earnings presentation, Feb 5, 2015
Slide 1: Q1 FY2015 Investor Presentation
Q1 FY2015 Investor Presentation February 5, 2015
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation contains forward-looking statements. All forward-looking statements speak only as of the date of this presentation. Except as required by applicable law, we do not intend to publicly update or revise any forward-looking statements. These forward-looking
Slide 3: Our Vision to Transform an Industry
Our Vision to Transform an Industry Provide clients and buying customers the world’s most transparent, innovative and effective online marketplaces and integrated services for surplus assets. http://www.liquidityservicesinc.com/investors Copyright Liquidity Services, Inc. 2015 3
Slide 4: Liquidity Services Still in Early Days
Liquidity Services Still in Early Days We address multiple, large markets still in early stages of online adoption Retail Supply Chain Capital Assets Public Sector $100 Bil GMV $50 Bil GMV $3 Bil GMV <2% Share <2% Share 12% Share http://www.liquidityservicesinc.com/investors Copyright Liquidity Serv
Slide 5: The Leading Online Marketplace for Surplus
The Leading Online Marketplace for Surplus Liquidity Services’ unmatched scale, services and track record continue to drive growth and network effects. Marketplace Liquidity 19.17mil+ 1.0 AUCTION PARTICIPANTS 2.6 mil+ 0.5 SELLERS BUYERS 2,300+ REGISTERED BUYERS Global reach → more bidders → higher
Slide 6: Our Buyer Base
Our Buyer Base Liquidity Services has buyers in over 200 countries and territories Our Professional Buyers Key Strengths Online Power Sellers Size and Geographic Diversity Discount Retailers Large Volume, Recurring Demand End Users Address All Product Conditions & VARS/Refurbishers Reg
Slide 7: Delivering High Buyer Customer Value
Delivering High Buyer Customer Value Buyer Demand Drivers: Liquidity Services Delivers: Online Sourcing Online Transparency Access to Large Supply Aggregation of Supply Frugality Value Based Goods Low Cost Fulfillment Efficient Logistics Trust and Reliability Secure Settlement http://www.liquidityse
Slide 8: Global Market Data & Industry Knowledge
Global Market Data & Industry Knowledge Industries and Online Marketplaces Unique Domain Expertise • $5.4 billion GMV in over 4.4 million Retail Surplus Assets completed transactions Biopharma • 370 million consumer goods items sold Electronics • 500,000+ unique items Manufacturing Federal Surplus A
Slide 9: Comprehensive Service Offering Fulfills Clients’ Complete Needs
Comprehensive Service Offering Fulfills Clients’ Complete Needs Surplus Asset Asset Asset Surplus Asset Redeployment Surplus Asset Discovery & Recovery Management & Disposition Disposition Valuation Planning Prep Brand & Channel Internal Online Auctions Returns Protection Redeployment Asset Catalogi
Slide 10: Global Coverage Supports F1000 Client Needs
Global Coverage Supports F1000 Client Needs http://www.liquidityservicesinc.com/investors Copyright Liquidity Services, Inc. 2014 10
Slide 11: Client Depth Across Industries
Client Depth Across Industries Retailers Retail OEM’s Government Energy Transportation Technology Healthcare & BioPharma Industrial Asset-Based Lenders (Formerly GMAC Financial) http://www.liquidityservicesinc.com/investors Copyright Liquidity Services, Inc. 2015 11
Slide 12: Macro Trends Expanding Our Opportunity
Macro Trends Expanding Our Opportunity Product Innovation eCommerce Growth Sustainability • More SKUs • Higher Return • Focus on “Zero Rates Waste” • Shorter Product Life Cycles • Higher • Need for Transportation Transparency • Need for Speed Costs • Need for • Complexity Compliance http://www.liqui
Slide 13: Our Growth Strategy
Our Growth Strategy Acquire Complementary External Businesses Expand Vertical Develop and Enhance Innovation Market Segments Features and Services and Expertise Grow Buyer Base and Increase Penetration of Develop New Organic Increase Participation Existing Sellers Seller Relationships Consistent exe
Slide 14: Financial Highlights
Financial Highlights Compelling Business Model Strong Financial Position $74.2 million of Cash High Customer Value Debt Free Multiple, Recurring Revenue Streams Trailing 12 month Adj. EBITDA of $60 Large Average Transaction Values million Diversified Product and Customer Mix 49 Conse
Slide 15: Strong Track Record of Growth
Strong Track Record of Growth Gross Merchandise Volume* Revenue* Fiscal Year Ended First Fiscal Year Ended First 9/30 Quarter 9/30 Quarter Multiple, Synergistic Revenue Streams Consignment Model Purchase Model Service Revenue Profit Sharing Model Revenue Share Buyer Premium Fees * All nu
Slide 16: Diversification By Pricing Model and Seller Base
Diversification By Pricing Model and Seller Base GMV Mix Pricing Model Seller Base Q1-FY15 Q1-FY15 Liquidity Services Serves Diversified Seller Base http://www.liquidityservicesinc.com/investors Copyright Liquidity Services, Inc. 2014 16
Slide 17: Strong Profitability
Strong Profitability Adjusted EBITDA(1) 23.1% 20.7% 12.7% 15.6% 13.1% 9.9% 10.0% 16.4% 10.3% 13.6% 10.2% 6.3% 8.0% 7.5% 5.7% Fiscal Year ended 9/30 First Quarter Note: Percentages indicate margin based on GAAP Revenue (1) Adjusted EBITDA shown for fiscal years 2002 – 2014 includes adjustments for st
Slide 18: Strong Profitability
Strong Profitability Adjusted Net Income(2) & Adjusted EPS The three months ended Q1 FY’15 benefitted from a reduction in the effective income tax rate from 40.0% to 24.6% as a result of a goodwill and long-lived impairment following the termination of the Walmart contract associated with the Jacob’
Slide 19: Operating Model - Based on GMV
Operating Model - Based on GMV Q1 FY 2009 FY 2010 FY 2011 FY2012 FY2013 FY2014 FY2015 Gross Merchandise Volume 100% 100% 100% 100% 100% 100% 100% Revenue 66.3% 66.7% 60.4% 55.0% 52.0% 53.2% 51.0% Cost of Goods Sold 24.3% 27.7% 24.3% 22.9% 20.5% 22.7% 22.1% Profit-Sharing Distributions 12.7% 10.0% 8.
Slide 20: Summary: Unique Strengths Create Competitive Advantage
Summary: Unique Strengths Create Competitive Advantage World’s Largest Global Market Data Unique, Turn-Key Strong Long-Term Buyer Base for Across Key Service Offering Execution Surplus Assets Industries Ability to Scale http://www.liquidityservicesinc.com/investors Copyright Liquidity Services, Inc.
Slide 21: Reconciliation of Financial Data
Reconciliation of Financial Data In Thousands Year ended Septem ber 30, 3 m os ended Dec 31, 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2013 2014 Net Income (Loss) $1,324 $2,776 $5,269 $4,122 $7,981 $11,019 $11,553 $5,719 $12,013 $8,512 $48,296 $41,104 $30,390 $7,093 ($64,116)