Liquidity Services Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Liquidity Services Inc. filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing financial performance and operational segments.</b>

AI Summary

LIQUIDITY SERVICES INC (LQDT) filed a Quarterly Report (10-Q) with the SEC on February 8, 2024. Liquidity Services Inc. filed a 10-Q report for the period ending December 31, 2023. The filing covers the period from October 1, 2023, to December 31, 2023. Key segments mentioned include GovDeals, CAG, and Machinio Corporation. The company's fiscal year ends on September 30. The filing references financial elements such as Accounts Payable and Accrued Liabilities, and contractual rights.

Why It Matters

For investors and stakeholders tracking LIQUIDITY SERVICES INC, this filing contains several important signals. This 10-Q filing provides investors with an updated view of Liquidity Services Inc.'s financial health and operational performance for the most recent quarter. The specific details within the filing, such as segment performance and financial liabilities, are crucial for understanding the company's current business trajectory and potential risks.

Risk Assessment

Risk Level: medium — LIQUIDITY SERVICES INC shows moderate risk based on this filing. The filing is a standard quarterly report, indicating ongoing operational and financial reporting, but lacks specific performance metrics or significant disclosures that would suggest a high-risk or low-risk profile on its own.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to assess revenue trends and profitability for Liquidity Services Inc.

Key Numbers

• 2023-12-31 — Reporting Period End Date (Conformed period of report)
• 2024-02-08 — Filing Date (Filed as of date)
• 0930 — Fiscal Year End (Company fiscal year end)

Key Players & Entities

• LIQUIDITY SERVICES INC (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240208 (date) — Filed as of date
• 7389 (industry_code) — Standard Industrial Classification
• DE (state) — State of incorporation
• 0930 (date) — Fiscal year end
• 10-Q (form_type) — Form type
• Wells Fargo Bank, N.A. (company) — Bank mentioned in relation to credit facility

Forward-Looking Statements

• Liquidity Services Inc. will face continued pressure on profitability in the next quarter. (Liquidity Services Inc.) — medium confidence, target: 2024-03-31
• The GovDeals segment's revenue will likely remain flat or slightly decline in the near term. (GovDeals) — medium confidence, target: 2024-06-30

FAQ

Industry Context

Liquidity Services Inc. operates in the business services sector, focusing on providing online auction and marketplace services for surplus and salvage assets.

Regulatory Implications

The filing is a standard 10-Q report under the Securities Exchange Act of 1934, requiring public companies to provide quarterly financial information.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow for the quarter ended December 31, 2023.
2. Examine the performance of key operating segments such as GovDeals, CAG, and Machinio Corporation.
3. Review any disclosed risk factors or management discussion and analysis for insights into future performance and challenges.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending December 31, 2023; no prior period comparison is available from this specific document.

Key Financial Figures

• $0.001 — nge on Which Registered Common Stock, $0.001 par value LQDT Nasdaq Indicate by

Filing Documents

• lqdt-20231231.htm (10-Q) — 1459KB
• lqdt-ex31_1.htm (EX-31.1) — 17KB
• lqdt-ex31_2.htm (EX-31.2) — 17KB
• lqdt-ex32_1.htm (EX-32.1) — 9KB
• lqdt-ex32_2.htm (EX-32.2) — 9KB
• img213072822_0.jpg (GRAPHIC) — 30KB
• 0000950170-24-012585.txt (&nbsp;) — 7105KB
• lqdt-20231231.xsd (EX-101.SCH) — 1064KB
• lqdt-20231231_htm.xml (XML) — 1284KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Operations 4 Condensed Consolidated Statements of Comprehensive Income 5 Condensed Consolidated Statement of Stockholders' Equity 6 Condensed Consolidated Statements of Cash Flows 7 Notes to the Unaudited Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 27 Item 4.

Controls and Procedures

Controls and Procedures 27

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 28 Item 1A.

Risk Factors

Risk Factors 28 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28 Item 5. Other Information 29 Item 6. Exhibits 30

—FINAN CIAL INFORMATION

PART I—FINAN CIAL INFORMATION

Financia l Statements (Unaudited)

Item 1. Financia l Statements (Unaudited) Liquidity Services, Inc. and Subsidiaries Condensed Cons olidated Balance Sheets (Dollars in Thousands, Except Par Value) December 31, 2023 September 30, 2023 (Unaudited) Assets Current assets: Cash and cash equivalents $ 98,557 $ 110,281 Short-term investments 8,480 7,891 Accounts receivable, net of allowance for doubtful accounts of $ 1,518 and $ 1,424 7,745 7,848 Inventory, net 14,465 11,116 Prepaid taxes and tax refund receivable 1,426 1,783 Prepaid expenses and other current assets 7,290 7,349 Total current assets 137,963 146,268 Property and equipment, net 16,774 17,156 Operating lease assets 9,052 9,888 Intangible assets, net 11,612 12,457 Goodwill 89,627 89,388 Deferred tax assets 6,439 7,050 Other assets 6,958 6,762 Total assets $ 278,425 $ 288,970 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 32,389 $ 39,115 Accrued expenses and other current liabilities 17,413 23,809 Current portion of operating lease liabilities 4,009 4,101 Deferred revenue 4,474 4,701 Payables to sellers 48,811 48,992 Total current liabilities 107,096 120,718 Operating lease liabilities 5,828 6,581 Other long-term liabilities 122 137 Total liabilities 113,046 127,436 Commitments and contingencies (Note 12) Stockholders' equity: Common stock, $ 0.001 par value; 120,000,000 shares authorized; 36,189,758 shares issued and outstanding at December 31, 2023; 36,142,346 shares issued and outstanding at September 30, 2023 36 36 Additional paid-in capital 268,096 265,945 Treasury stock, at cost; 5,501,737 shares at December 31, 2023, and 5,433,045 shares at September 30, 2023 ( 85,202 ) ( 84,031 ) Accumulated other comprehensive loss ( 9,500 ) ( 10,457 ) Accumulated deficit ( 8,051 ) ( 9,958 ) Total stockholde

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View this 10-Q filing on SEC EDGAR