News Releases - 2006


Home > Investors > News Releases > 2006 > Liquidation World Announces Record Q3 Revenue

9 New Stores to Open by December
Calgary, July 11, 2006

Liquidation World Inc. (LQW – TSX) today announces revenue for the thirteen weeks ended July 2, 2006 increased 6.0% to a Q3 record $49.1 million from $46.3 million during the 13 weeks ended July 3, 2005. Same store sales increased 3.8% over the same period.

On a cumulative basis, revenue for the first three quarters of 2006 totalled $155.2 million, a 13.0% increase (9.9% increase in same store sales) from $137.3 million during the 39 weeks ended July 3, 2005. Complete financial results of the third quarter of the 2006 fiscal year will be announced in mid-August 2006.

“During the quarter, we continued to realize the benefits of a restructured and more focused buying team. Last year during this same period, we were aggressively discounting aged inventory while this year’s same store sales increase is the result of fresh new merchandise”, said Jonathan Hill, President & CEO. “We are  particularly pleased with our performance in certain categories where we have recently added resources.”

Mr. Hill continued, “Over the last year, the investments we have made in people, systems and infrastructure have set the stage for continued store growth. As we move forward, we will seek to leverage those investments as planned; the Company has recently executed lease  agreements for 9 new stores that will be open before the end of the calendar year. The new locations include: Leamington, Ontario; Kingston, Ontario; Thunder Bay, Ontario; Steinbach, Manitoba; Vernon, British Columbia; Merritt, British Columbia; Wenatchee, Washington and Clarkston, Washington. As well, Liquidation World will open its first outlet in Atlantic Canada this fall in Saint John, New Brunswick.” The Company expects to close 2 stores during the same period, for a net gain of 7 outlets by the end of calendar 2006. Mr. Hill stated, “We expect that our recent infrastructure investments will readily support this upcoming expansion along with the further new store growth planned for 2007.”

About Liquidation World

Liquidation World liquidates consumer merchandise through 102 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. Due to fluctuations in gross margins and other expenses, an increase in revenue does not directly correlate to an increase in net earnings.

3880 – 29 Street N.E.
Calgary, AB T1Y 6B6
Tel: (403) 250-1222
Fax: (403) 291-1306
www.liquidationworld.com

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