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Home > Investors > News Releases > 2004 >Liquidation World Revenue Climbs 7.5% in Q3
Calgary, Auguster 23, 2004
Liquidation World Inc. (LQW - TSX), today announced its results for the third quarter of fiscal 2004, representing thirteen weeks of operations ending July 4, 2004.
Revenue increased 7.5% to $44,989,000 from $41,856,000 during Q3 2003. Revenues have been restated from those reported on July 8, 2004 to remove revenues of discontinued operations as discussed below. Earnings from continuing operations increased 151.9% to $822,000 ($0.10 per share) in Q3 2004 from a loss of $1,584,000 ($0.19 per share) in Q3 2003. Net earnings increased 114.7% to $221,000 ($0.03 per share) in Q3 2004 from a net loss of $1,505,000 ($0.17 per share) in Q3 2003.
Year-to-date revenue increased 8.3% to $139,219,000 in fiscal 2004 from $128,536,000 in fiscal 2003. Earnings from continuing operations increased 414.9% to $3,476,000 ($0.41 per share) from a loss of $1,104,000 ($0.13 per share) in 2003. Net earnings year-to-date increased to $2,769,000 ($0.32 per share) in 2004 from a loss of $1,468,000 ($0.17 per share) in 2003. Additional details are provided in the financial statements below.
During the third quarter, the Company determined it would achieve greater success by focusing on core operations, and accordingly, entered discussions to divest of Clear Thinking Group, Inc. ("CTG"), a consulting firm that management felt was not instrumental to the success of its ongoing strategic plans. The financial information presented above and in the financial statements below, reflect the removal of the results of operations and financial position of CTG, and disclose its net results as discontinued operations.
Executive Vice President and CFO, Andrew Searby, said, “Results of the third quarter last year include a retiring allowance for a senior executive and a foreign exchange charge that created a loss. Revenue this year has increased, and we have managed to keep expenses in check. The result is a stronger bottom line with earnings per share from continuing operations totaling $0.10 on the quarter and $0.41 year to date.”
Speaking on behalf of the Office of the CEO, Senior Executive Vice President and Co-CEO, Darren Gillespie, said, “Our focus over the past year has been to increase revenue on a same store basis and improve the operational excellence in our core business. In addition, we set out to enhance the shopping experience, and believe our success is evident in the fact our customers’ basket size is growing.
“The vast majority of our outlets have experienced same store sales increases in the past quarter, and indeed throughout the fiscal year. In addition to the store and operational improvements just noted, our ability to source attractive and desirable merchandise has helped make this possible. And, by controlling costs at the same time, financial performance of our continuing operations have noticeably improved.
“We believe further advances are possible, both in the near and the long term, through improved marketing efforts which include an upcoming flyer program that will lead us into the holiday season, and mix of inventory.
“The recent aftermath of Hurricane Charlie makes a case in point. Within 48 hours of the storm’s landfall, Liquidation World had buyers on the ground in Florida looking for inventory opportunities.
“We are also preparing for the selection of a new merchandise management system that is expected to create operational efficiencies by allowing us to better manage our inventory and its flow through our system. Of course, better knowledge management will benefit every aspect of the organization as we share and make fuller use of the increasingly valuable information that is at our disposal. Implementation of the new system is expected in fiscal 2005.
“Early in September, the Company will centralize its eastern operations in a combined regional office and distribution facility in the historic and former Massey-Ferguson plant in Brantford, Ontario. At 125,000 square feet in size, and with an additional 75,000 square-foot mezzanine, we fully expect this new complex will allow the Company to service a greater number of stores in Canada’s most densely populated region, and lend us the flexibility to process and realize full value from unexpected and out-ofseason purchases. The facility will also house our 102nd retail Outlet.”
Gillespie also noted that new outlets were opened in both Hawkesbury and Campbellford, Ontario this spring. An additional site is slated to open in Aldergrove, BC this September. “Also, our Cranbrook, BC outlet has relocated to a much improved retail location. It’s a move that is indicative of our philosophy to take full advantage of favourable real estate opportunities when they develop.
“And, as at the end of June, the Company had repurchased 132,900 of its common shares pursuant to a Normal Course Issuer Bid that was approved by the Toronto Stock Exchange on April 27, 2004. As was stated at the time, management believes that the market price of its common shares is such that their repurchase is an attractive and appropriate use of corporate funds.
“All this activity makes us particularly keen as we round out the final quarter of 2004 and turn our attention to 2005.”
Download Financial Results (PDF 71kb)
About Liquidation World
Liquidation World offers a uniquely diversified menu of solutions for organizations with asset recovery issues. Services include auctions, store closure sales management, and retail liquidations of consumer merchandise through 100 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