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Home > Investors > News Releases > 2004 >Liquidation World Earnings Climb 178% in Q2
Calgary, May 20, 2004
Liquidation World Inc. (LQW - TSX) announces the results of operations for the thirteen weeks ended April 4, 2004. Revenue increased 14.0% to $44,397,000. Net earnings increased 177.8% to $660,000 ($0.08 per share) during the second quarter of fiscal 2004 from a net loss of $848,000 ($0.10 per share) during the corresponding period in fiscal 2003.
On a cumulative basis, revenue increased 8.7% to $95,710,000 during the twenty-six weeks ended April 4, 2004. Net earnings increased to $2,547,000 ($0.30 per share) during the first half of fiscal 2004 from $37,000 ($nil per share) during the first half of fiscal 2003. Additional details are provided in the financial statements below.
CFO, Andrew Searby, said, “We have seen that stronger inventory and greater selection results in higher sales, and is evident in past results. To this end, inventory levels have been purposely increased, a fact that is reflected in the financial statements, and confirmed by our semi-annual inventory count.”
Speaking on behalf of the Office of the CEO, Co-CEO, Darren Gillespie, said, “It’s great to see so much quality merchandise working its way through our system. As we watch other publicly-traded retailers report earnings, good and bad, we are heartened by the fact we occupy a steady niche in a dynamic and unpredictable retail world, because with change, there will always be a need for the menu of services Liquidation World offers, and the alternative retail channel we can provide.
“Our second-quarter results reflect this reality with characteristic consistency. With revenues of $44.4 million, the Company made the most of hundreds of opportunistic deals that arose from bankruptcies, insurance claims, cancelled orders, packaging changes, production overruns, as well as countless other opportunistic circumstances.
“Obviously, we continue to realize value where others can’t, and moving into the third quarter, we have a wealth of great quality merchandise that is just now working its way through the system.
“Still, we feel there will be more opportunities to uncover in the years ahead. Readying ourselves for greater capacity, we have recently launched an intensive study of our information and enterprise resource needs.
“Speaking of growth, our newest Outlet opened on May 13th, in the predominantly Francophone town of Hawkesbury, Ontario, and another is slated to open in Campbellford, Ontario early in June. That will make for a total of 100 Outlets operating in every province from Ontario west to British Columbia, as well as in Washington State, Montana, Idaho, and Alaska.
“We are proud of these developments and equally proud of the people that made them happen. We truly believe much of what has been accomplished in the past nine months is a direct result of our return to a “Brilliance in the Basics” approach. By holding true to the valuable work we do for our vendors, and the ensuing savings we pass along to consumers, we will continue to create value where others are unable.”
About Liquidation World
Liquidation World 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.
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., Executive Vice President and CFO
E-mail: investorinfo@liquidationworld.com
Website: www.liquidationworld.com
Telephone (403) 250-1222
Fax: (403) 291-1306