Liquidity Services, Inc. (NASDAQ:LQDT) Q1 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 10:30 am ET

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Liquidity Services, Inc. (NASDAQ:LQDT) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Q1 Fiscal Year 2019 Liquidity Services Earnings Conference Call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we will have a question-and-answer session and instructions will be given at that time. (Operator Instructions) As a reminder, today's conference will be recorded for replay purposes.

It is now my pleasure to turn the conference over to Ms. Julie Davis, Senior Director of Investor Relations. Please proceed.

Executive
Julie Davis

Thank you, Haley. Hello and welcome to our first quarter fiscal year 2019 financial results conference call. Joining us today are Bill Angrick, our Chairman and Chief Executive Officer; and Jorge Celaya, our Chief Financial Officer. We will be available for questions after our prepared remarks.

The following discussion or responses to your question reflects management's views as of today, February 7th, 2019, and will include forward-looking statements. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and then our filings with the SEC including our most recent annual report on Form 10-K.

As you listen to today's call we encourage you to have our press release in front of you, which includes our financial results, as well as metrics and commentary on the quarter. During this call we will discuss certain non-GAAP financial results and our press release and our filings with SEC, each of which is posted on our website. You will find additional disclosures regarding these non-GAAP measures; including reconciliations of these measures with comparable GAAP measures. We also use certain supplemental operating data as a measure of certain components of operating performance, which we also believe is useful for management and investors. The supplemental operating data includes gross merchandise volume and should not be considered a substitute for or superior to GAAP results.

At this time, I'd like to turn the presentation over to our CEO, Bill Angrick.

Executive
William P. Angrick

Thank you, Julie. Good morning, and welcome to our Q1 earnings call. I will review our Q1 performance and provide an update on key strategic initiatives. Next, Jorge Celaya will provide more details on the quarter and our outlook for the current Q2 quarter.

Our first quarter results reflect continued execution of our growth strategy and improving results across all of our business segments. As a refresher, our RISE growth strategy has four key pillars: one, recovery maximization; two, increasing volume; three, service expansion, and finally, expense leverage. The objective of our RISE strategy is to deliver a diversified asset-light business with a solid foundation or long-term growth.

We are in a terrific position to advance our strategy with many growth opportunities. During Q1, excluding the completed DoD Surplus Contract, our consolidated GMV grew 12% year-over-year and our GAAP revenue grew 20% year-over-year.

Additionally, our consolidated non-GAAP adjusted EBITDA increased 42% over the prior year, reflecting operating efficiencies in the business that will drive improved results over time. Q1 marks the third consecutive quarter that we've