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News Releases - 2003
Home > Investors > News Releases > 2003 >Liquidation World Announces Q1 Results
Calgary, February 19, 2003
Liquidation World Inc. (LQW – TSX; LIQWF – Nasdaq) announces results for the 13 weeks ended January 5, 2003. Revenues increased 3% to $49,102,000 compared to $47,653,000 during the 13 weeks ended January 6, 2002. Net earnings decreased 43% to $885,000 ($0.10 per share) during the first quarter of fiscal 2003 compared to $1,565,000 ($0.18 per share) during the first quarter of fiscal 2002. During the quarter, cash flow from operations after changes in working capital decreased 25% to $7,077,000 from $9,383,000 during the corresponding period in fiscal 2002. Additional details are provided in the financial statements.
“The Company faces continued pricing pressures from mainstream retailers,” said Mr. Gillespie, Company Founder & C.E.O. “There are indicators retail insolvencies are on the rise, which will create opportunities for the Company to acquire merchandise and create excitement for our extreme value oriented consumers. In anticipation of these opportunities, the Company’s cash reserves are at an all time high and the balance sheet is in its strongest position ever”.
Liquidation World recently opened a new outlet in Arthur, Ontario. This outlet extends Liquidation World’s market penetration and takes advantage of existing marketing and logistical infrastructure. Liquidation World has closed five outlets due to expiry of leases; one in White Rock, British Columbia, one in Toronto, Ontario and three in Longview, Kilgore and Nacogdoches, Texas. The Texas outlets became available as a result of Liquidation World conducting going out of business sales and, the locations were anticipated to be temporary.
Liquidation World is also announcing its intention to extend its Normal Course Issuer Bid to purchase, subject to regulatory approval, up to 427,000 of its common shares by way of a normal course issuer bid made through the facilities of the Toronto Stock Exchange. The 427,000 shares represent approximately 5% of Liquidation World's issued and outstanding common shares.
Liquidation World believes that its common shares are undervalued at current market prices, based on Liquidation World's current earnings and future prospects, and that the repurchase of common shares at current market prices is an appropriate use of corporate funds and should benefit shareholders.
Liquidation World is a liquidator of consumer merchandise through 95 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 and sales 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