Liquidity Services Lowers Q3 Adj. EPS Outlook; To Cut FY13 Adj. EPS Guidance

(RTTNews) - Liquidity Services Inc. (LQDT) reported certain preliminary financial results for its third quarter fiscal year 2013 ended June 30, 2013. The company now expects adjusted earnings per share of $0.43 to $0.45, compared to previous expectations of $0.49 to $0.54.

Analysts polled by Thomson Reuters expect the company to report profit of $0.51 per share for the quarter. Analysts' estimates typically exclude special items.

Liquidity Services expects to report Gross Merchandise Volume of $228 million to $231 million, which is lower than the company's previous expectations of $250 million to $275 million. Adjusted EBITDA, which excludes stock based compensation and acquisition costs, is expected to be $26 million to $27 million compared to the company's previous expectations of $29 million to $32 million.

Liquidity Services said its third-quarter results were impacted by lower than expected GMV in the company's capital assets and retail supply chain verticals as a result of lower product flows from existing clients and slower than expected rollout of new client programs.

Bill Angrick, Chairman and CEO of Liquidity Services, said: "The lower than expected top line results during the quarter were driven by delays in new programs, weaker volumes in the consumer electronics sector and the continued repositioning of the GoIndustry marketplace to focus on the key global Fortune 1000 relationships that we expect will drive sustained profitable growth in this business."

As a result of the lower than expected third quarter results, the company expects to lower its fiscal year 2013 guidance for GMV, Adjusted EBITDA and Adjusted EPS. Liquidity Services will update its guidance during the earnings call on August 7, 2013.