Investor Information
News Releases - 2003
Home > Investors > News Releases > 2003 >Liquidation World Announces Q2 Results
Calgary, May 22, 2003
Liquidation World Inc. (LQW - TSX) announces the results of operations for the thirteen weeks ended April 6, 2003. Revenue decreased 7% to $38,934,000 from $41,960,000 during the corresponding period in 2002. Net earnings decreased 212% to a net loss of $848,000 ($0.10 per share) during the second quarter of fiscal 2003 from net earnings of $756,000 ($0.09 per share) during the corresponding period in fiscal 2002.
On a cumulative basis, revenue decreased 2% to $88,036,000 during the twenty-six weeks ended April 6, 2003 from $89,613,000 during the period ended April 7, 2002. Net earnings decreased 98% to $37,000 ($nil per share) during the first half of fiscal 2003 from $2,321,000 ($0.27 per share) during the first half of fiscal 2002.
“Many retailers found this quarter to be a difficult quarter for a variety of reasons related to weather, geopolitical issues and the economy and we were no exception seeing significant declines in same-outlet sales” said Dale Gillespie Chairman & CEO. “As a low cost operator, we are able to weather this turbulence until prospects improve. We are beginning to see opportunities to open new locations and acquire a wide variety of inventory for our value conscious customers.”
“Included in the loss of $848,000 are the costs of closing 5 outlets and a foreign exchange loss of $276,000 resulting from the translation of our U.S. assets and the weakening U.S. dollar. In the medium term, the weaker U.S. dollar works to our advantage. Our balance sheet remains strong allowing us to take advantage of the opportunities that arise.”
Liquidation World opened two outlets in Ontario in the third quarter of 2003. The outlets in Woodstock and Sudbury, take advantage of existing marketing and distribution infrastructures and increase the Company’s penetration in the Ontario market place.
About Liquidation World
Liquidation World is a liquidator of consumer merchandise through 96 outlets across North America. The Company conducts weekly 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 1,600 employees in outlets across Canada and the U.S.
For more information, please contact:
Dale Gillespie, C.E.O.
Andrew Searby, CA, Executive V.P. and Chief Financial Officer
E-mail: investorinfo@liquidationworld.com
Website: www.liquidationworld.com
Telephone: (403) 250-1222
Fax: (403) 291-1306