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Home > Investors > News Releases > 2003 >Liquidation World Announces Annual Results
Calgary, December 11, 2003
Liquidation World Inc. (LQW – TSX) announces the results of operations for the 52 weeks ended October 5, 2003. Revenue decreased nominally to $173,675,000 from $174,520,000 during the 52 weeks ended October 6, 2002. Net earnings decreased 65% to $769,000 ($0.09 per share) during fiscal 2003 from $2,205,000 ($0.26 per share) during the 2002 fiscal year.
During the final quarter, the thirteen weeks ended October 5, 2003, revenue increased 1% to $42,823,000 from $42,551,000 during the thirteen weeks ended October 6, 2002. Net earnings in the fourth quarter of 2003 increased 581% to $2,237,000 ($0.26 per share) compared to $385,000 ($0.05 per share) in the fourth quarter of 2002.
“Included in the fourth quarter results is a larger than usual positive inventory adjustment to reflect the actual value of inventory on hand as a result of the physical inventory count”, said Andrew Searby, Chief Financial Officer. “In part, the declining US dollar manifested itself in stronger gross margins than we had estimated earlier in the year, which led to there being a higher dollar value of inventory on hand than we had reflected in our records.”
“The Office of the CEO is not entirely satisfied with the final results of fiscal 2003, but is encouraged that, through its first full quarter of existence, it has made progress toward enhancing the value of our core business,” said Darren Gillespie, Senior Executive Vice President and Co- C.E.O.
“Much of that value is generated through the buying group, which while primarily opportunistic in the past, has identified high volume categories in which it wishes to purchase in a more proactive manner. Better exploiting these low cost, high margin lines is fundamental to returning to the turns and profits that historically defined our firm,” he said.
“This invigorated and entrepreneurial approach has already led to the acquisition of greater inventories. We expect to efficiently process and effectively sell this merchandise through Outlets that are capable of contributing materially to the bottom line in 2004 and beyond.”
“In that vein,” he continued, “we are announcing the closure of two Outlets in Canada and one in the U.S. that have not met this criterion.” “However, we will continue to take advantage of opportunities for expansion, and would also like to announce that three new Canadian Outlets are slated to open in 2004,” he said.
“Finally, the Company has also initiated its ‘Brilliance in the Basics’ campaign, which focuses on those strategic and operational efficiencies that will manifest themselves in the competitive pricing that is reflective of the Company’s position as a leading North American liquidator,” Gillespie concluded.
About Liquidation World
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, consulting, and retail liquidations of consumer merchandise through 98 outlets across Canada and the United States . 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.
This release includes forward-looking statements and potential future circumstances and developments. Forward-looking statements regarding future performance are subject to risks and uncertainties and actual results may differ materially.
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