Liquidity Services, Inc. · NASDAQ:LQDT
Liquidity Services — Q1 2018 Earnings Presentation
20 slides from Liquidity Services's earnings presentation, February 2018
Slide 1: Investor Presentation First Quarter Fiscal Year 2018
Investor Presentation First Quarter Fiscal Year 2018 February 2018 ©Liquidity Services, Inc. All Rights Reserved. 1
Slide 2: Forward-Looking Information
Forward-Looking Information This document contains forward-looking statements. These statements are only predictions. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that may cause our actual results, leve
Slide 3: ©Liquidity Services, Inc. All Rights Reserved.
©Liquidity Services, Inc. All Rights Reserved. 3
Slide 4: ©Liquidity Services, Inc. All Rights Reserved.
©Liquidity Services, Inc. All Rights Reserved. 4
Slide 5: Our Purpose: Clients, Buyers, Planet
OUR PURPOSE: To intelligently capture the enduring value of surplus, benefiting our clients, our buyers, and our planet. CLIENTS BUYERS PLANET For enterprises with used, idle, For organizations and consumers For the planet’s natural resources, or excess assets and inventory: looking to achieve busin
Slide 6: Delivering Maximum Value to Clients
Delivering Maximum Value to Clients Better Service OUR VALUE Superior levels of industry and asset expertise, responsiveness, PROPOSITION intelligence, and analytics that achieve high-performance results aligned to your strategic goals TO CLIENTS Better Scale Complete solutions tailored to your indu
Slide 7: Services
Services Liquidity Services provides organizations in every major industry with consultative surplus asset management, valuation, and sales solutions. ©Liquidity Services, Inc. All Rights Reserved. 7
Slide 8: Client Depth Across Industries
Client Depth Across Industries ©Liquidity Services, Inc. All Rights Reserved. 8
Slide 9: Providing Superior Buyer Experiences
Providing Superior Buyer Experiences OUR VALUE Superior Product Quality and Information Large volumes and recurring flows of products; refurbishment services to PROPOSITION enhance and ensure product quality; ability to view detailed product TO BUYERS information, ask questions, and inspect items Fa
Slide 10: Market Opportunity
Market Opportunity $50 Billion $3 Billion Retailers & OEMs U.S Public Sector $8 Billion $20 Billion $48 Billion Energy Industrial Capital Assets Transportation $130 Billion Total Addressable Market Our Clients Across Industries ©Liquidity Services, Inc. All Rights Reserved. 10
Slide 11: Growth Strategy
Growth Strategy Acquire Complementary Businesses Develop and Expand Vertical Enhance Features Market Segments and Services and Expertise Grow Buyer Increase Develop Base and Increase Penetration of New Seller Penetration Existing Sellers Relationships Consistent execution of growth strategy delivers
Slide 12: Financial Results
Financial Results ©Liquidity Services, Inc. All Rights Reserved. 12
Slide 13: Financial Highlights
Financial Highlights Compelling Business Model § High Customer Value § Multiple, Recurring Revenue Streams § Large Average Transaction Values § Diversified Product and Customer Mix § Significant Barriers to Exit as Critical Mass Builds Strong Financial Position § $96.8 million of Cash § Debt Free ©L
Slide 14: Strong Track Record of Growth
Strong Track Record of Growth* Multiple, Synergistic GMV 973 Revenue Streams 864 932 799 642 629 559 § Consignment Model 430 360 356 § Profit Sharing Model 234 173 160 155 § Purchase Model § Revenue Share Model 06 07 08 09 10 11 12 13 14 15 16 17 16 17 § Service Revenue Fiscal Year ended Quarter end
Slide 15: Diversification By Pricing Model
Diversification By Pricing Model GMV Mix By Pricing Model Purchase Purchase 24.7% 30.5% Consignment 69.5% Consignment 75.3% Q1 FY17 Q1 FY18 ©Liquidity Services, Inc. All Rights Reserved. 15
Slide 16: Diversification By Segment
Diversification By Segment GMV Mix by Segment Retail Retail 18.5% 15.4% State & Local Gov’t 35.1% State & Local Gov’t 45.8% Capital Assets Capital Assets 34.7% 47.8% Corporate & Other 1.7% Corporate & Q1 FY17 Other Q1 FY18 1.0% ©Liquidity Services, Inc. All Rights Reserved. 16
Slide 17: Diversification By Segment
Diversification By Segment Revenue Mix by Segment Corporate State & & Other Corporate & Local 1.5% Other Gov’t Retail 2.5% 11.5% 27.4% Retail 33.5% Capital Assets 63.0% Capital Assets 52.4% Q1 FY17 Q1 FY18 ©Liquidity Services, Inc. All Rights Reserved. 17
Slide 18: Profitability
Profitability Adjusted EBITDA(1) $110.1 $104.6 $63.0 $52.7 $37.5 $33.0 $26.2 $23.6 $20.4 $15.0 $3.7 10.3% 10.2% -$3.0 1.2% -$4.3 -$21.6 06 07 08 09 10 11 12 13 14 15 16 17 16 17 Fiscal Year ended Quarter ended 9/30 12/31 (1) Adjusted EBITDA shown for fiscal years 2002 – 2017 includes adjustments for
Slide 19: Reconciliation of Financial Data
Reconciliation of Financial Data 3 m onths Ended In Thousands Year Ended Septem ber 30, Decem ber 31, 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2016 Net Income (Loss) $7,981 $11,019 $11,553 $5,719 $12,013 $8,512 $48,296 $41,104 $30,390 ($104,815) ($59,926) ($39,187) ($1,212) (
Slide 20: Investor Relations
Investor Relations Julie Davis, Senior Director 202.558.6234 [email protected] ©Liquidity Services, Inc. All Rights Reserved. 20