Exhibit 99.1
Liquidity Services, Inc. and Subsidiaries
Unaudited Pro Forma Consolidated Balance Sheets
As of June 30, 2015
(Dollars in Thousands)
|
| Liquidity |
| Jacobs |
| Pro Forma |
| |||
Assets |
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Current assets: |
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Cash and cash equivalents |
| $ | 96,188 |
| $ | (2,618 | ) | $ | 93,570 |
|
Accounts receivable, net of allowance for doubtful accounts of $2,396 at June 30, 2015 |
| 10,041 |
| (1,993 | ) | 8,048 |
| |||
Inventory |
| 40,672 |
| (15,039 | ) | 25,633 |
| |||
Prepaid and deferred taxes |
| 21,126 |
| — |
| 21,126 |
| |||
Prepaid expenses and other current assets |
| 5,320 |
| (523 | ) | 4,797 |
| |||
Total current assets |
| 173,347 |
| (20,173 | ) | 153,174 |
| |||
Property and equipment, net |
| 13,021 |
| (62 | ) | 12,959 |
| |||
Intangible assets, net |
| 3,365 |
| — |
| 3,365 |
| |||
Goodwill |
| 122,361 |
| (6,774 | ) | 115,587 |
| |||
Deferred long-term tax assets |
| 28,305 |
| — |
| 28,305 |
| |||
Other assets |
| 2,397 |
| — |
| 2,397 |
| |||
Total assets |
| $ | 342,796 |
| $ | (27,009 | ) | $ | 315,787 |
|
Liabilities and stockholders’ equity |
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Current liabilities: |
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Accounts payable |
| $ | 17,117 |
| $ | (3,046 | ) | $ | 14,071 |
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Accrued expenses and other current liabilities |
| 23,763 |
| (790 | ) | 22,973 |
| |||
Profit-sharing distributions payable |
| 2,686 |
| — |
| 2,686 |
| |||
Customer payables |
| 30,683 |
| — |
| 30,683 |
| |||
Total current liabilities |
| 74,249 |
| (3,836 | ) | 70,413 |
| |||
Deferred taxes and other long-term liabilities |
| 6,749 |
| — |
| 6,749 |
| |||
Total liabilities |
| 80,998 |
| (3,836 | ) | 77,162 |
| |||
Stockholders’ equity: |
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|
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Common stock, $0.001 par value; 120,000,000 shares authorized; 30,011,121 shares issued and outstanding at June 30, 2015 |
| 29 |
| — |
| 29 |
| |||
Additional paid-in capital |
| 213,479 |
| — |
| 213,479 |
| |||
Accumulated other comprehensive loss |
| (6,292 | ) | — |
| (6,292 | ) | |||
Retained earnings |
| 54,582 |
| (23,173 | ) | 31,409 |
| |||
Total stockholders’ equity |
| 261,798 |
| (23,173 | ) | 238,625 |
| |||
Total liabilities and stockholders’ equity |
| $ | 342,796 |
| $ | (27,009 | ) | $ | 315,787 |
|
Liquidity Services, Inc. and Subsidiaries
Unaudited Pro Forma Consolidated Statements of Operations
For the Year Ended September 30, 2014
(Dollars in Thousands Except Share and Per Share Data)
|
| Liquidity |
| Jacobs |
| Pro Forma |
| |||
|
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Revenue |
| $ | 388,671 |
| $ | (93,327 | ) | $ | 295,344 |
|
Fee revenue |
| 106,990 |
| — |
| 106,990 |
| |||
Total revenue from operations |
| 495,661 |
| (93,327 | ) | 402,334 |
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Costs and expenses from operations: |
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Cost of goods sold (excluding amortization) |
| 211,659 |
| (69,859 | ) | 141,800 |
| |||
Profit-sharing distributions |
| 35,055 |
| — |
| 35,055 |
| |||
Technology and operations |
| 108,940 |
| (10,883 | ) | 98,057 |
| |||
Sales and marketing |
| 41,951 |
| (1,517 | ) | 40,434 |
| |||
General and administrative |
| 49,428 |
| (1,944 | ) | 47,484 |
| |||
Amortization of contract intangibles |
| 7,265 |
| — |
| 7,265 |
| |||
Depreciation and amortization |
| 9,330 |
| (681 | ) | 8,649 |
| |||
Acquisition costs |
| (18,384 | ) | — |
| (18,384 | ) | |||
Total costs and expenses |
| 445,244 |
| (84,884 | ) | 360,360 |
| |||
Income from operations |
| 50,417 |
| (8,443 | ) | 41,974 |
| |||
Interest and other expense (income), net |
| 370 |
| — |
| 370 |
| |||
Income before provision for income taxes |
| 50,047 |
| (8,443 | ) | 41,604 |
| |||
Provision for income taxes |
| 19,657 |
| — |
| 19,657 |
| |||
Net income |
| $ | 30,390 |
| $ | (8,443 | ) | $ | 21,947 |
|
Basic earnings per common share |
| $ | 0.97 |
|
|
| $ | 0.70 |
| |
Diluted earnings per common share |
| $ | 0.97 |
|
|
| $ | 0.70 |
| |
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Basic weighted average shares outstanding |
| 31,243,932 |
|
|
| 31,243,932 |
| |||
Diluted weighted average shares outstanding |
| 31,395,301 |
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|
| 31,395,301 |
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Liquidity Services, Inc. and Subsidiaries
Unaudited Pro Forma Consolidated Statements of Operations
For the Nine Month Ended June 30, 2015
(Dollars in Thousands Except Share and Per Share Data)
|
| Liquidity |
| Jacobs |
| Pro Forma |
| |||
|
|
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|
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Revenue |
| $ | 251,509 |
| $ | (39,024 | ) | $ | 212,485 |
|
Fee revenue |
| 66,323 |
| — |
| 66,323 |
| |||
Total revenue |
| 317,832 |
| (39,024 | ) | 278,808 |
| |||
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Costs and expenses: |
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Cost of goods sold (excluding amortization) |
| 132,814 |
| (36,584 | ) | 96,230 |
| |||
Profit-sharing distributions |
| 23,505 |
| — |
| 23,505 |
| |||
Technology and operations |
| 76,409 |
| (7,580 | ) | 68,829 |
| |||
Sales and marketing |
| 31,438 |
| (1,871 | ) | 29,567 |
| |||
General and administrative |
| 31,378 |
| (965 | ) | 30,413 |
| |||
Amortization of contract intangibles |
| 1,211 |
| — |
| 1,211 |
| |||
Depreciation and amortization |
| 6,030 |
| (387 | ) | 5,643 |
| |||
Acquisition costs and related fair value adjustments and impairment of goodwill and long-lived assets |
| 96,238 |
| — |
| 96,238 |
| |||
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Total costs and expenses |
| 399,023 |
| (47,387 | ) | 351,636 |
| |||
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(Loss) income from operations |
| (81,191 | ) | 8,363 |
| (72,828 | ) | |||
Interest and other expense, net |
| (85 | ) | — |
| (85 | ) | |||
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(Loss) income before benefit (provision) for income taxes |
| (81,276 | ) | 8,363 |
| (72,913 | ) | |||
Benefit (provision) for income taxes |
| 20,156 |
| — |
| 20,156 |
| |||
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Net income (loss) |
| $ | (61,120 | ) | $ | 8,363 |
| $ | (52,757 | ) |
Basic earnings (loss) per common share |
| $ | (2.04 | ) |
|
| $ | (1.76 | ) | |
Diluted earnings (loss) per common share |
| $ | (2.04 | ) |
|
| $ | (1.76 | ) | |
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Basic weighted average shares outstanding |
| 29,975,239 |
|
|
| 29,975,239 |
| |||
Diluted weighted average shares outstanding |
| 29,975,239 |
|
|
| 29,975,239 |
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