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Home > Investors > News Releases > 2003 >Liquidation World Announces Third Quarter Results
Calgary, August 19, 2003
Liquidation World Inc. (LQW – TSX) announces results for the third quarter, the thirteen weeks ended July 6, 2003. Revenue increased 1% to $42,816,000 from $42,356,000 during the corresponding period in 2002. Net losses totaled $1,505,000 ($0.17 per share) compared to a loss of $501,000 or ($0.06) per share during the third quarter of fiscal 2002. The net loss in Q3 2003 is the result of a charge of $1,419,000 (net of $907,000 income tax recovered) for a retirement allowance and life insurance obligations approved by the Board of Directors in accordance with the employment agreement of a senior executive and a foreign exchange loss of $349,000 (net of $136,000 income tax recovered).
On a cumulative basis, revenue for the first three quarters of 2003 totaled $130,852,000, a 1% decrease from $131,969,000 during the 39 weeks ended July 7, 2002. Net losses totaled $1,468,000 ($0.17 per share) during the three quarters of fiscal 2003 compared to net earnings of $1,820,000 ($0.21 per share) during the corresponding period of fiscal 2002.
“While the Company saw a modest improvement in operations during the quarter versus last year, we continued to face a challenging retail environment as a result of a number of external forces” said Senior Executive Vice President and Co-C.E.O. Darren Gillespie. “The new leadership of the Company has begun work on a number of initiatives consistent with our key objectives of increased revenue generation and operational excellence. We are confident these will result in improved performance in the near term.”
On June 5, 2003, the Company announced Dale Gillespie would transfer the roll of C.E.O. to the newly created “Office of The Chief Executive”, consisting of Wayne Mantika (Calgary), as President and Co-C.E.O.; Jonathan Hill (Toronto) as Senior Executive Vice President and Co-C.E.O.; and Darren Gillespie (Vancouver) as Senior Executive Vice President and Co-C.E.O.
Liquidation World opened a new outlet in Quesnel, B.C. on August 14, 2003. The outlet extends market presence and brings the exciting bargain hunting shopping experience to a new market without significantly increasing operation costs.
Liquidation World Inc. offers a uniquely diversified menu of solutions for organizations with asset recovery issues. Services include auctions, reverse logistics and processing, store closure sales management, turnaround consulting, and retail liquidations of consumer merchandise through 98 outlets across North America. Liquidation World solves asset recovery problems, in a professional manner, for the financial services industry, insurance companies, manufacturers and other organizations. Liquidation World opened its first retail outlet in 1986 and is now the largest liquidator in Canada, with more than 1,600 employees in outlets and offices across Canada and the United States.
For more information, please contact:
Mr. Darren Gillespie, Senior Executive Vice President & Co-C.E.O.
E-mail: darreng@liquidationworld.com
Website: www.liquidationworld.com
Telephone (604) 589-7111, ext. 223
Fax: (604) 583-2255
Mr. Andrew Searby, C.A. Chief Financial Officer
E-mail: investorinfo@liquidationworld.com
Website: www.liquidationworld.com
Telephone (403) 250-1222
Fax: (403) 291-1306