Liquidity Services, Inc. · NASDAQ:LQDT
Liquidity Services — Q1 FY2019 Earnings Presentation
22 slides from Liquidity Services's earnings presentation, February 2019
Slide 1: Investor Presentation First Quarter Fiscal Year 2019
Investor Presentation First Quarter Fiscal Year 2019 February 2019 ©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 $130 Billion Total Addressable Market Our Clients Across Industries *Data from evaluation of research from Appriss Retail (2018), Manfredi
Slide 11: Growth Strategy
Growth Strategy Acquire Complementary Businesses Develop and Expand Vertical Enhance Features Market Segments and Services and Expertise Grow Buyer Increase Develop Base and Increase Penetration of New Seller Penetration Existing Sellers Relationships Consistent execution of growth strategy delivers
Slide 12: Financial Results
Financial Results ©Liquidity Services, Inc. All Rights Reserved. 12
Slide 13: Financial Highlights
Financial Highlights Compelling Business Model ▪ High Customer Value ▪ Multiple, Recurring Revenue Streams ▪ Large Average Transaction Values ▪ Diversified Product and Customer Mix ▪ Network effect drives recovery maximization for sellers and increasing flow of asset supply for buyers Strong Financi
Slide 14: Top Line Results
Top Line Results* Multiple, Synergistic GMV 973 932 Revenue Streams 864 799 642 629 626 559 ▪ Consignment Model 430 360 356 ▪ Purchase Model 234 173 155 159 ▪ Revenue Share Model ▪ Service Revenue 06 07 08 09 10 11 12 13 14 15 16 17 18 17 18 ▪ Buyer Premium Fees Fiscal Year ended Quarter 9/30 ended
Slide 15: GMV & Revenue Trends
GMV & Revenue Trends Commercial Business GMV1 ($m) Commercial Business GAAP Revenue2 ($m) Footnotes 1) Product and consignment GMV excluding GMV generated from DOD contracts (Surplus & Scrap) 2) GAAP defined revenue excluding revenue generated from DOD contracts (Surplus & Scrap) 3) See Commercial B
Slide 16: Diversification By Pricing Model
Diversification By Pricing Model GMV Mix By Pricing Model Purchase Purchase 25% 22% Consignment Consignment 75% 78% Q1 FY18 Q1 FY19 ©Liquidity Services, Inc. All Rights Reserved. 16
Slide 17: Diversification By Segment
Diversification By Segment GMV Mix by Segment RSCG RSCG 18.5% 21.4% GovDeals 45.8% GovDeals 51.3% CAG 34.7% CAG 27.1% Corporate & Other Corporate & 1.0% Q1 FY18 Q1 FY19 Other 0.3% ©Liquidity Services, Inc. All Rights Reserved. 17
Slide 18: Diversification By Segment
Diversification By Segment Revenue Mix by Segment Corporate Corporate & & Other Other 2.5% 0.8% GovDeals 11.5% GovDeals Machinio 14.2% 1.9% RSCG 33.6% RSCG 54.5% CAG CAG 28.7% 52.5% Q1 FY18 Q1 FY19 ©Liquidity Services, Inc. All Rights Reserved. 18
Slide 19: Profitability
Profitability Adjusted EBITDA(1) $110.0 $104.6 $63.0 $52.5 $37.5 $32.7 $26.2 $23.6 $20.4 $15.0 $3.8 10.2% 10.3% -$3.0 -$1.7 -$7.3 -$21.6 06 07 08 09 10 11 12 13 14 15 16 17 18 17 18 Fiscal Year ended Quarter ended 9/30 12/31 (1) Adjusted EBITDA shown for fiscal years 2002 – 2018 includes adjustments
Slide 20: 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 2018 2018 2017 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) ($11,
Slide 21: Reconciliation of Commercial Business GMV and Revenue
Reconciliation of Commercial Business GMV and Revenue Commercial Revenue Reconciliation Quarter ended 12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018 (unaudited) (dollars in millions) Consolidated Revenue 61.1 60.1 50.6 52.7 54.1 DOD Scrap -5.1 -6.0 -6.1 -5.6 -4.1 DOD Surplus -16.2 -11.6 -0.1 0.
Slide 22: Investor Relations
Investor Relations Julie Davis, Senior Director 202.558.6234 [email protected] ©Liquidity Services, Inc. All Rights Reserved. 22