Liquidity Services (LQDT) saw its loss widen to $53.76 million, or $1.75 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $43.70 million, or $1.46 a share. On an adjusted basis, net loss for the quarter stood at $638 million, or $0.02 a share compared with a net profit of $1,975 million, or $0.07 a share in the last year period.

Revenue during the quarter went down marginally by 0.98 percent to $78.51 million from $79.29 million in the previous year period. Gross margin for the quarter contracted 421 basis points over the previous year period to 48.14 percent. Operating margin for the quarter stood at negative 32.18 percent as compared to a negative 79.48 percent for the previous year period.

Operating loss for the quarter was $25.27 million, compared with an operating loss of $63.02 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $696 million compared with $1,876 million in the prior year period.

“We delivered solid financial results during Q4-16 with better than expected bottom line results driven by improved pricing in our scrap and energy marketplaces and higher service revenues,” said Bill Angrick, Chairman and Chief executive officer of Liquidity Services. “Compared to the prior year, our energy marketplace (NetworkIntl.com) GMV was up 45%, our municipal government business (GovDeals.com) GMV was up 13%, and our retail (Liquidation.com) and industrial (Go-Dove.com) marketplaces experienced growth within key client accounts. Our DoD marketplace (GovLiquidation.com) GMV was down 12% reflecting lower volumes and a less favorable product mix. We expanded the scope of our e-commerce offerings by launching our new IronDirect marketplace in September which enables global fleet customers and end users to purchase new heavy equipment, attachments, undercarriage parts and accessories from proven suppliers in the global construction industry. With the deployment of our first marketplace on our new e-commerce platform in Q4-16, we have continued to advance our LiquidityOne transformation initiative and demonstrated the potential of our platform investments to capture new market opportunities. We expect to deploy our next marketplace in the spring of FY17 followed by phased rollouts thereafter,” continued Mr. Angrick.

Liquidity Services projects net loss to be in the range of $13 million to $10 million for the first-quarter. The company expects diluted loss per share to be in the range of $0.41 to $0.31 for the first-quarter. On an adjusted basis, the company expects diluted loss per share to be in the range of $0.31 to $0.22 for the first-quarter.

The company has spent $6.15 million cash to meet investing activities during the year as against cash outgo of $9.82 million in the last year.

The company has spent $0.22 million cash to carry out financing activities during the year as against cash inflow of $0.07 million in the last year period.

Cash and cash equivalents stood at $134.51 million as on Sep. 30, 2016, up 40.90 percent or $39.05 million from $95.46 million on Sep. 30, 2015.

Working capital declines
Liquidity Services has witnessed a decline in the working capital over the last year. It stood at $99.42 million as at Sep. 30, 2016, down 16.61 percent or $19.80 million from $119.23 million on Sep. 30, 2015. Current ratio was at 2.16 as on Sep. 30, 2016, down from 2.72 on Sep. 30, 2015.