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The quarter marks the 59th consecutive quarter of profitability (all quarters since inception).
On a cumulative basis, sales increased 11% to $136,232,000 during the thirty-nine weeks ended July 1, 2001 from $122,929,000 during the same period ended July 2, 2000. Net earnings increased 28% to $4,992,000 ($0.59 per share) during the three quarters of fiscal 2001 from $3,888,000 ($0.47 per share) during the corresponding period of fiscal 2000. Additional details are provided in the financial statements below.
"We are able to make many new contacts in challenging economic times," said Dale Gillespie, President, CEO and Founder of Liquidation World. "Our professional reputation fosters the trust of companies with branded merchandise issues, and our performance ensures the relationships build and last through the good times and bad."
Liquidation World is a retail liquidator of consumer merchandise through 88 outlets across North America. The Company conducts Auctions of a diverse range of merchandise and equipment in the Calgary and Edmonton, Alberta markets and through on-site auctions across North America. Liquidation World solves inventory problems, in a professional manner, for banks, receivers, insurance companies, manufacturers and other organizations, and is committed to providing its customers with outstanding value over a broad range of merchandise. Liquidation World opened its first outlet in 1986 and is now the largest liquidator in Canada, with more than 1600 employees in outlets across Canada and the U.S.
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LIQUIDATION WORLD INC.
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Consolidated Balance Sheets
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As at July 1, 2001 and October 1, 2000 (In thousands of dollars)
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2001
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2000
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(unaudited)
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Assets
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Current assets
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Cash and equivalents
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$
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174
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$
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177
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Accounts receivable
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1,369
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896
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Inventory
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55,088
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49,858
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Prepaid expenses
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1,789
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1,993
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58,420
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52,924
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Capital assets
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4,536
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4,378
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Investment in affiliate
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487
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411
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$
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63,443
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$
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57,713
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Liabilities and Shareholders' Equity
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Current liabilities
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Bank indebtedness
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$
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4,255
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$
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3,435
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Accounts payable and accrued liabilities
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7,506
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8,630
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Income taxes payable
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1,316
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836
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13,077
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12,901
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Shareholders' equity
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Share capital
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15,465
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14,903
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Retained earnings
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34,901
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29,909
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50,366
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44,812
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$
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63,443
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$
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57,713
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Consolidated Statements of Earnings and Retained Earnings
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For the 39 weeks ended July 1, 2001 and July 2, 2000 (unaudited)
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(In thousands of dollars, except per share amounts)
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2001
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2000
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Sales
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$
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136,232
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$
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122,929
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Cost of sales
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83,538
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76,188
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52,694
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46,741
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Expenses
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Selling and store operations
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38,553
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35,033
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General and administrative
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4,217
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3,515
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Depreciation and amortization
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1,031
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953
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Interest
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70
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252
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43,871
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39,753
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Earnings before income taxes
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8,823
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6,988
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Income taxes
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3,831
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3,100
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Net earnings
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4,992
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3,888
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Retained earnings, beginning of period
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29,909
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23,611
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Retained earnings, end of period
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$
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34,901
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$
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27,499
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Earnings per share - Basic
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$
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0.59
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$
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0.47
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- Fully diluted
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$
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0.57
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$
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0.45
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Consolidated Statements of Cash Flows
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For the 39 weeks ended July 1, 2001 and July 2, 2000 (unaudited)
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(In thousands of dollars)
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2001
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2000
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Cash provided by (used in):
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Operations
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Net earnings
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$
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4,992
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$
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3,888
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Add (deduct) non-cash items:
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Depreciation and amortization
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1,031
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953
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Equity in loss (income) of affiliate
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(76)
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23
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5,947
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4,864
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Changes in non-cash operating working capital
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Accounts receivable
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(473)
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9
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Inventory
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(5,230)
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(6,415)
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Prepaid expenses
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204
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114
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Accounts payable and accrued liabilities
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(1,124)
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2,057
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Income taxes
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480
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(433)
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(196)
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196
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Investments
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Purchase of capital assets
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(1,189)
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(930)
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Investment in affiliate
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-
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(455)
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(1,189)
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(1,385)
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Financing
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Increase in bank indebtedness
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820
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1,076
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Proceeds on issuance of common shares
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562
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132
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1,382
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1,208
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Increase (decrease) in cash
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(3)
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19
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Cash and equivalents, beginning of period
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177
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152
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Cash and equivalents, end of period
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$
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174
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$
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171
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