News Releases - 2007


Home > Investors > News Releases > 2007 > Liquidation World Announces Q1 2007 Results

10 new stores added during the quarter while same store sales increase 3.7%

Liquidation World Inc. (LQW – TSX) today announced results for the first quarter of fiscal 2007, representing 13 weeks of operations ending December 31, 2006. Revenue for the quarter increased 13.2% to $64.7 million from $57.1 million, and set a new Q1 record. Same store sales increased 2.9% over prior year in Canadian currency and 3.7% before  converting US revenue to Canadian currency.

Net earnings were $1.8 million ($0.21 per share), compared to a $1.9 million ($0.23 per share) during Q1 last year.

Further detail is provided in the financial statements in the PDF version of this release.

Liquidation World will hold its 2006 Annual General and Special Meeting on February 8, 2007 at the Calgary Chamber of Commerce, Robert Brown Jr. Room #205, 100 – 6 Avenue SW, Calgary, AB at 3:00 pm. The Company will also host a lunch and presentation on February 13, 2007 in Toronto.

Investors interested in attending the Toronto presentation are invited to contact Diane Caswell at 403-717-4702 or dianec@liquidationworld.com for further details.

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

It has been a busy quarter as we continued to execute our strategy to increase same store sales and open more new stores. During the quarter we recorded same store  sales growth of 3.7% and added net 10 new stores, keeping us on track toward our goal of having 125 locations in operation by the end of the fiscal year. In the first quarter, gross margin increased to 38.8% from 38.3% in the same quarter last year. We are pleased that our margin performance has recovered so quickly from our performance in the fourth quarter of last year. The Q1 margin calculation was validated through a supplementary physical inventory count conducted at the end of the quarter.

While I am satisfied with our revenue performance in recent quarters and our ability to add new stores, we must remain mindful of both the size and quality of our store portfolio, and ensure that the number of stores does not take priority over the quality of our stores. Looking back on 2006 for example, we closed 13 stores and opened 15. In the process, however, we replaced $15 million in annual sales with an estimated $30 million. We will continue to look for similar opportunities to improve the efficiency of the store network and make adjustments where warranted.

Except for the cost of the supplementary inventory count conducted at the end of the quarter, our expenses in the quarter were in line with expectations and reflect the planned additions of executive, merchant, operations and administrative personnel over the past year, and the expenses incurred to get our new outlets up and running. However, to improve profitability, we must be vigilant that we are effectively leveraging our overhead expenses, and through the balance of the year will continue to refine our plans toward that goal.

Read the PDF version of this release, complete with financial details.

About Liquidation World

Liquidation World liquidates consumer merchandise through 115 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. EST) on Thursday, February 8, 2007. Conference call dial in number is 1-877-888-7019 or 416-695-6130

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 “Q1 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