News Releases - 2001


Home > Investors > News Releases > 2001 >Liquidation World Earnings Increase 15% in the Third Quarter

Caliquidation World Opens New Outlets in Hamilton and St. Catharines 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.

LIQUIDATION WORLD INC.

Consolidated Balance Sheets

As at July 1, 2001 and October 1, 2000 (In thousands of dollars)

2001

2000

(unaudited)

Assets

Current assets

Cash and equivalents

$

174

$

177

Accounts receivable

1,369

896

Inventory

55,088

49,858

Prepaid expenses

1,789

1,993

58,420

52,924

Capital assets

4,536

4,378

Investment in affiliate

487

411

$

63,443

$

57,713

Liabilities and Shareholders' Equity

Current liabilities

Bank indebtedness

$

4,255

$

3,435

Accounts payable and accrued liabilities

7,506

8,630

Income taxes payable

1,316

836

13,077

12,901

Shareholders' equity

Share capital

15,465

14,903

Retained earnings

34,901

29,909

50,366

44,812

$

63,443

$

57,713

Consolidated Statements of Earnings and Retained Earnings

For the 39 weeks ended July 1, 2001 and July 2, 2000 (unaudited)

(In thousands of dollars, except per share amounts)

2001

2000

Sales

$

136,232

$

122,929

Cost of sales

83,538

76,188

52,694

46,741

Expenses

Selling and store operations

38,553

35,033

General and administrative

4,217

3,515

Depreciation and amortization

1,031

953

Interest

70

252

43,871

39,753

Earnings before income taxes

8,823

6,988

Income taxes

3,831

3,100

Net earnings

4,992

3,888

Retained earnings, beginning of period

29,909

23,611

Retained earnings, end of period

$

34,901

$

27,499

Earnings per share - Basic

$

0.59

$

0.47

- Fully diluted

$

0.57

$

0.45

Consolidated Statements of Cash Flows

For the 39 weeks ended July 1, 2001 and July 2, 2000 (unaudited)

(In thousands of dollars)

2001

2000

Cash provided by (used in):

Operations

Net earnings

$

4,992

$

3,888

Add (deduct) non-cash items:

Depreciation and amortization

1,031

953

Equity in loss (income) of affiliate

(76)

23

5,947

4,864

Changes in non-cash operating working capital

Accounts receivable

(473)

9

Inventory

(5,230)

(6,415)

Prepaid expenses

204

114

Accounts payable and accrued liabilities

(1,124)

2,057

Income taxes

480

(433)

(196)

196

Investments

Purchase of capital assets

(1,189)

(930)

Investment in affiliate

-

(455)

(1,189)

(1,385)

Financing

Increase in bank indebtedness

820

1,076

Proceeds on issuance of common shares

562

132

1,382

1,208

Increase (decrease) in cash

(3)

19

Cash and equivalents, beginning of period

177

152

Cash and equivalents, end of period

$

174

$

171

For more information, please contact:
Mr. Dale Gillespie, President & C.E.O.
Mr. Andrew Searby, CA, Chief Financial Officer
E-mail: investorinfo@liquidationworld.com
Website: www.liquidationworld.com
Telephone: (403) 250-1222
Fax: (403) 291-1306

 

 

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