Liquidity Services, Inc. (NASDAQ: LQDT) has announced its acquisition of Sierra Auction, a prominent auctioneer specializing in the sale of vehicles, equipment, and surplus assets for government agencies, commercial businesses, and charities. The acquisition is expected to bolster Liquidity Services' position as the leading online platform for the sale of such assets.
The stock of Liquidity Services moved 1.4% following the announcement, and is currently trading at $17.36 per share.
Bill Angrick, Chairman of the Board and CEO of Liquidity Services, commented on the acquisition, stating, "With Sierra's strong track record of delivering value for government and commercial clients, this transaction enhances our business with immediate access to a growing portfolio of clients in the attractive southwestern US surplus market, expands our pre-and post-sale logistics services for fleet owners, and increases our network of buyers for used vehicles and high-value equipment."
Nick Carr, President of Sierra Auction, expressed his optimism about the combination of Sierra's strengths in traditional auctions with Liquidity Services' reach in digital auctions, stating, "The combination of Sierra's strengths in traditional auctions together with Liquidity Services' reach in digital auctions will be great for our customers and take our already strong business to the next level."
The company expects to retain Sierra's current management team and employees following the transaction.
The full 8-K submission from Liquidity Services, Inc. regarding the acquisition of Sierra Auction can be accessed here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $74,837 | $226,525 | $205,940 | $257,531 | $280,050 | $304,132 |
| Revenue Growth | n/a | 202.69% | -9.09% | 25.05% | 8.74% | 8.6% |
| Operating Margins | -28% | -9% | -2% | 11% | 17% | 10% |
| Net Margins | -16% | -9% | -2% | 20% | 14% | 7% |
| Net Income (k) | -$11,615 | -$19,260 | -$3,774 | $50,949 | $40,324 | $22,678 |
| Net Interest Expense (k) | $785 | $1,448 | $924 | $411 | $248 | $1,653 |
| Depreciation & Amort. (k) | $4,599 | $5,091 | $6,290 | $6,969 | $10,322 | $10,747 |
| Earnings Per Share | $32095491 | -$0.58 | -$0.11 | $1.45 | $1.2 | $0.69 |
| Diluted Shares (k) | 32,808 | 33,545 | 34,911 | 34,869 | 32,938 | 31,513 |
| Free Cash Flow (k) | -$3,555 | -$12,180 | $12,292 | $59,998 | $36,712 | $40,318 |
| Capital Expenditures | $4,174 | $5,938 | $4,186 | $5,419 | $8,121 | $5,734 |
| Current Ratio | 1.49 | 1.23 | 1.31 | 0.96 | 1.08 | 1.12 |
