News Releases - 2006


Home > Investors > News Releases > 2006 > Liquidation World Announces Dramatic Turnaround from Prior Year

Typically challenging Q2 buoyed by record period sales.

This press release, with a consolidated balance sheet, is available for download (PDF).


Liquidation World Inc. (LQW – TSX) today announces results for the second quarter of fiscal 2006, representing 13 weeks of operations ending April 2, 2006.

Revenue for the quarter increased 24.2% to $48.9 million from $39.4 million, and set a new Q2 record. Earnings were $663,000 ($0.08 per share), compared to a loss of $6.5 million ($0.77 per share) in the same period last year.

Fiscal year-to-date revenue increased 16.5% to $106.0 million from $91.1 million. Cumulative earnings were $2.6 million ($0.31 per share) compared to a loss of $5.6 million ($0.66 per share) in Q2 2005.

Further detail is provided in these financial statements .

Liquidation World’s President and Chief Executive Officer, Jonathan Hill, said:

Overall, our results for the second quarter reflect a dramatic improvement from the operating losses and inventory issues we faced a year ago. The structure, discipline and accountability that we have brought to bear over the past year are now positively affecting our performance.

Our strengthened and more disciplined merchandising group is sourcing desirable product more effectively. Meanwhile, our ongoing store renovation program is creating a more inviting shopping environment and our customers are responding enthusiastically. Together, these initiatives contributed to a same store sales increase of 18.4%.

The Company also continued to strengthen its leadership ranks during the quarter, announcing, in late February, the appointment of Dennis Kennedy to the new executive position of Senior Vice President, Operations. Mr. Hill explains:

We are excited about the experience that Dennis brings from his many years with Home Depot in Canada and the United States. His track record of success with growth and process improvement in particular will support our future goals.

With the completion of its second quarter, Liquidation World has experienced three consecutive quarters of improving performance. Mr. Hill commented:

We are encouraged by these results, especially since Q2 is typically our toughest quarter. In addition, we see continued opportunities to improve our financial performance. As an example, the implementation of our merchandise management system continues with the recent successful testing of scanning and shelf labelling in select stores. This is an initiative which is expected to further improve operating efficiency as it is rolled out to all of our outlets.

On the supply side, a number of recent press reports have described the efforts that other major retailers are making to reduce inventory levels, shifting the burden of inventory management and risk to their suppliers. We fully expect this change in the retail marketplace to result in more distressed inventory situations and feel our buying team is well positioned to capitalize on these new, quality inventory opportunities.

We are confident that our investments in people, technology and the further professionalism of our business will position us well moving forward.

About Liquidation World

Liquidation World liquidates consumer merchandise through 103 outlets across North America and also provides store-closure sales management. It 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 1,800 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.

Liquidation World has scheduled a conference call to begin promptly
at 11:00 a.m. Calgary time (1:00 p.m. EDT) on May 9th, 2006.
Conference call dial in number is 1-800-769-8320 or 416-695-5261

A replay of the conference call will be accessible on Liquidation World’s website within twenty-four hours at www.liquidationworld.com by selecting “Investor Info”, “News Releases”, and “Q2 Conference Call”.

For more information, please contact:

Jonathan Hill, President and CEO
416-587-0688 phone
866-237-3778 fax
jonathanh@liquidationworld.com

Andrew Searby, CA, Executive VP, and CFO
403-250-1222 phone
403-291-1306 fax
investorinfo@liquidationworld.com

This press release, with a consolidated balance sheet, is available for download. (PDF)