Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Liquidity Services, Inc. (NASDAQ:LQDT)

March 05, 2013 10:10 am ET

Executives

James M. Rallo - Chief Financial Officer, Principal Accounting Officer and Treasurer

Analysts

Ross Sandler - Deutsche Bank AG, Research Division

Ross Sandler - Deutsche Bank AG, Research Division

Okay, great. So thanks for joining us. I'm Ross Sandler, head of the Internet research team here at DB. Very glad to have Jim Rallo from Liquidity Services here presenting. Jim and I go way back since kind of pre-IPO. And it's been a great run for you guys. So why don't we just start with, for some folks here that may not know the business model or have that much background given that we're in kind of an Internet media conference, can you just give them a quick 60-second overview on who Liquidity is, what you guys do and the basic elevator pitch?

James M. Rallo

Sure. No, thanks, Ross. It's a pleasure to be here. And it's great to have someone like Ross who's been there since we have gone public. The company really has grown dramatically since 2006. We went public in February 2006, and we've more than five-folded the top line and more than ten-folded the bottom line since then and really just stuck to our strategic business plan which is we're in the reverse logistics business. What we do is we sell surplus assets. And surplus assets can really be defined as anything that's been used by a large entity and is at the end of the useful life for that entity but still has a life left in that asset, and then we'll resell that.

So on the retail side of our business, we work with some of the largest retailers in the world, Walmart, Best Buy, Target, Amazon and so forth. And what we do is we'll sell their store returns. And so when you're -- when you go into a store, if you're going to return a product, if it's not in the original manufacturer's packaging, they will not put it back on the shelf. They will send it to a liquidator and then that liquidator will then sell it in a secondary market. And that business has been really going on for hundreds of years, if you think about the liquidation business. What we do is we take that product and we sell it online in an auction format on one of our websites. Liquidation.com, for example, is our retail website.

We also -- another large part of our business is selling capital assets. So again, sort of the same methodology: We'll take companies that have trucks or cranes, bulldozers, medical and test equipment, anything from retailers of -- for racking, forklifts. When Walmart remodels a store, for example, anything you'd see in snack shop or anything like that, all of that capital equipment, point-of-sale systems, we'll sell for them again in an online auction format.

And what we do is we aggregate buyers from around the world. We've got 2.2 million buyers who come on one of our marketplaces and they buy these assets. Now how we make money is, about 60% of the time, we're taking a consignment fee. So we are taking a fee for service, if you would, for selling these assets. And our fees range anywhere from as low as 10% to 12% on some large capital assets to as high as 20% to 25% on either specialty manufacturing equipment or sometimes on the retail side of our business.

We also do have, at times, especially in our retail side of our business, where we purchase products and we will actually guarantee a price for the product to the seller. And in those cases, we usually get terms. So the cash flow model of our business is very positive, and thus we're taking money from the buyer after they win the auction. We're then holding that money and make sure the product gets shipped from the seller to the buyer or from one of our warehouses. By the way, we manage over 1.5 million square feet around the country. And we'll ship the product from there to the buyer as well. And then after the buyer gets the product, then we'll remit the money to the seller. So it's a very trusted marketplace model.

And similar to Amazon, we're in the middle of every transaction. So if you're a buyer and you have a problem, you refer to LSI. If you're a seller, if you have a problem, then you refer to LSI. Buyers and sellers are not communicating with each other. It's not the eBay model. We're providing a high level of service to both the buyers and the sellers, and therefore we have very little fraud in our marketplace. It's a business buyer marketplace because, again, we're selling everything in bulk. So if you wanted to buy palettes of goods or truckloads of goods -- the only time we sell single-unit items is on some of the larger capital assets, obviously a large truck, a helicopter. We work with 5,200 state and local governments where we sell garbage trucks, firetrucks, police cars, things like that. Sometimes, those things are single units.

So again, where we are today is we have stuck to our knitting over the last 5 or 6 years and have grown the business significantly by basically growing with existing clients and growing by adding new clients. And we have consistently delivered anywhere from 20% to 30% growth annually over that 5-year period, albeit not necessarily in a smooth line. As Ross and I have discussed on many occasions: We're a growth company. We don't grow on a straight line. Last year, we had phenomenal growth, over 60% growth organically; over 70% or 80% growth, with an acquisition that we had done. And this year, our growth has definitely slowed down, some of which I know I'm sure Ross will ask questions about that.

Question-and-Answer Session

Ross Sandler - Deutsche Bank AG, Research Division

Yes, let's start on that. The last time we did one of these fireside chats was in September. I think the stock was in, like, the mid-50s then. We're now in the mid-30s. And I think you guys have done a good job with the December Analyst Day of kind of articulating the vision and the long-term story. But since then, there's been a series of events that have happened that have caught, frankly, us and I would say, you guys by surprise. So what was it that you didn't see going on from the Analyst Day until where we sit today? And kind of what changed, I guess?

James M. Rallo

Sure. So we had our first Analyst Day on December 12. We had a lot of investors there as well, about 50 people in total. And I think it was good for people to finally come into one of our warehouses and actually see all the services we provide. Again, that's really the -- one of the keys to our model is offering services for buyers and sellers wrapped around the marketplace. So again, we're much more than eBay, more of an Amazon, if you think about it from a service-level standpoint. And again, we did that on December 12. We had a very good quarter on the December 31 quarter. We're a 9/30 year-end company, so December 31 was Q1 for us. And we had a very nice Q1. We had given guidance after fiscal year 9/30 on the full year. We had given guidance on the quarter, and again we had a good quarter. When we started looking at what was going on in January -- so we had our earnings call January 31, actually. And the beginning of January is always slow for us because it's just, the first 10 days after the holidays, there's not a lot going on, but it really starts picking up after that. So January started to slow down for us compared to normal levels in the retail side of our business, particularly around existing programs. So again, when you look at our business, we sell a lot of capital assets. That's about half our business. We sell a lot of retail return goods, that's the other half of our business. On the capital asset side, the March quarter is always a little slow because most of our clients there are year-end companies and the big quarter for them is 12 -- is the 12/31 quarter, which we just completed. So it's always a little slow. But on the retail side of our business, the March quarter is our high mark of the year. And the reason for that is because there's all those store purchases in November and December. A lot of those will get returned the end of December or January, and then those returns will make it through our marketplace from the retailers in January, February, March. And we'll still be getting some and selling them in April. And so March is a big quarter in the retail side of our business. And in January, primarily from our existing program -- so an existing program for us means it's a client we've been working for -- working with for over a year, and we've had that program for over a year. So when we look at our business, our growth comes from further penetrating existing clients, so that would be a new program, and I'll talk about it further in a second. A new program from an existing client, thus further penetrating existing clients; or a new client, and that's a new program in general for a new client. And so we like to grow on -- our growth is measured. And we like to do that because we like to grow with our existing clients first and foremost because you always want to serve an existing client as well as you can. And so if they have a need, you want to work with them before bringing on another client. You never want to get into a situation where you're disrupting any existing client's business by bringing on new business. And we have traditionally gotten high-single-digit, 7%, 8%, growth out of our existing client programs without even further penetrating them year in, year out. And we saw in January, that was not happening. And so when you look at that, that means that the rest of the year, if we're going to get the growth we want to out of the retail side of our business, we need to get it from new programs with existing clients, or we need to get it from new clients. And that goes back to that pipeline that we're constantly managing from our sales force of bringing in new business. And the issue with that is that you can't turn that ticket on, on a dime. It takes a couple quarters to get that going. And again as I mentioned before, we try to measure the flow through the marketplaces so we don't disrupt any existing programs. And that caught us off guard a little bit, as Ross noted. And we've lowered our expectation for our growth in the retail side of our business for this fiscal year, again so ending September 30, because it's going take a couple months to ramp up that pipeline of product, of new products, if you would, again, new products from the existing clients or new products from new clients. And we don't think we're going to see a lot of growth this year from the existing programs primarily because returns are down under a lot of key areas that we deal with, consumer electronics, toys, household effects, small appliances, areas, when you think about it, have really been kind of high gift-giving ideas over the holidays. And there's always been good, what I would call, product evolution, product velocity, whatever you want to refer to it as, as far as development. We haven't seen a lot of that in recent years. In the consumer electronics, for example, there really hasn't been anything big in televisions. 3D has turned out to be a bust so far due to lack of content. I mean, I think Apple's announcement of their own iPad mini and iPhone 5 speaks for itself. There's been some discussion about Walmart sales and so forth. Again, Walmart's one of our largest clients. And so that growth is really something -- or that slowdown in growth is something this year that we haven't experienced before. So when we look at organic growth this year for the retail part of our business, we're thinking around 15%. That's down from over 20% that we expected in the beginning of the year. So that's driving our organic growth down some this year.

Ross Sandler - Deutsche Bank AG, Research Division

And so that begs the next question, which is -- you guys manage this marketplace and what you've described is very much the supply side of it. The other side would be the buyer base and the demand side. From the sounds of it, this is just a function of needing to create more supply for new and existing customers. Once you have that, the demand piece is there. And you can almost -- though not an unlimited amount, but you can push a lot more through the warehouses, through all these channels. Is that a fair characterization, that it's more of a supply than a demand issue?

James M. Rallo

Absolutely. Right now, I think it's a great point, Ross. We're definitely in a supply shortfall which, again if you go back to the market, it's a $50 billion a year market. These numbers are self-reported by the retailers. The National Retail Federation factors about $225 billion a year of goods returned at retailers either online or in a brick-and-mortar environment annually. Our addressable piece of that is about $50 billion. That's the piece that'll get liquidated. And we're going to do around $1 billion this year, right? So we're 2% or less of the total market. So finding a product to sell is not necessarily a long-term problem. It's certainly a short-term problem right now, as I've identified. But we've got good buyer demand right now. As I mentioned, we have 2.2 million buyers. Our buyer base has grown in the high teens, 20% annually for years. And that's an important point Ross is making is that we're in a 2-sided marketplace. So we only get paid if we sell product in our marketplace. That's a very different model than eBay, for example, which does get listing fees. It's more of -- it's really more to the Amazon model where, if something doesn't sell, they don't get paid whether they're selling it or whether they're selling it in their fulfillment side of their business. We are the same way. So we work a lot on consignment, as I mentioned before. Obviously, if we're purchasing products, we don't get paid unless we sell it. And so we're fully aligned with our sellers. And for us, we're going to continue to focus on the strategic initiatives that we've laid out years ago. And we will continue to grow with our existing clients and we'll continue to add new clients. We've got a sales force that's dedicated to doing that, both the hunter and farmer model, inside of our -- inside of LSI. And right now, we're focused on increasing that supply, as I mentioned before, trying to increase the velocity of that new client or new program pipeline.

Ross Sandler - Deutsche Bank AG, Research Division

Okay. And so if we take it back up a level and talk about kind of the longer-term picture. You guys talked about $2 billion in GMV as the target, at your December Analyst Day, for I think 2016 as the timeline. So can we get there with the existing base of companies that you have at Liquidity? Or does that encompass a organic growth rate plus looking at tangential things that you guys have been to fold in over the next few years?

James M. Rallo

Sure. Well, we can certainly get to $2 billion a year with our existing client base. And if you look at the list of our existing clients, I mean, they're on our website, it's really a who's who in the retail side of the business or the manufacturing side of the business or the energy side of the business. It's a large market opportunity. Our largest penetrated client on the retail side is Walmart. We probably have close to 1/3 of their liquidation. They're 20% of our overall business. We've obviously disclosed that given the materiality of it. When you look at other big clients, Costco, Best Buy, we're just not very penetrated with them, Home Depot or Lowe's. There's a lot of opportunity within our existing client base to grow the business. And so what -- the one thing that people have to remember about our business is that we were founded in 2000, so again the liquidation industry has been out there for a long time. We're always displacing somebody else that's in there. So we don't really have a lot of formidable competition, but we certainly have a lot of competition. And our job is to go in there and demonstrate with data, which we can do, that we're going to drive a better net return and provide the services that these large retailers need. So we can certainly hit our $2 billion bogey with our existing client base. I do think, when you look at our history, we are an acquisitive company, we're going to -- when you look at sort of tuck-in transactions. So we haven't done any sort of transformative acquisition to date. We've done really some smaller acquisitions that have increased our domain expertise, have added to our marketplace either through some buyer or seller relationships. And I would expect to see those to continue in the future, but those that kind of move the needle a little bit but not a whole lot.

Ross Sandler - Deutsche Bank AG, Research Division

And so if we look at getting that $2 billion, the ideal environment for you guys is one where you've got fairly decent retail sales going on and then fairly decent velocity of returns, like that's basically the perfect environment for your commercial business. And what we're saying is, maybe given some of the Walmart comments and things we're seeing from the channel, that's not what's happening right now. But I look into 2016, when you can get back to that type of environment, everything could be okay. Is that a fair characterization?

James M. Rallo

Absolutely, on the service. We're really not a countercyclical play. Although, I will say we grew very nicely during the downturn times. I think that what's going on right now is, look, taxes have been raised for everyone whether you're middle class, upper middle class or rich. I mean, your taxes have gone up just simply from the payroll tax, and it's clear that's affecting spending activity. So if people are not buying things, they're not returning things. Return rates have been pretty consistent for years: Brick-and-mortar environment's about 6% to 8%. In an online environment, it can be anywhere from 12% to 14% or even higher in specific verticals. So for us, as Ross mentioned, the perfect environment for us would be obviously a healthier economy, people spending more, and thus, people are going to be returning more. Now that being said, that's not a requirement for our growth. As I mentioned earlier, over the last 5 years, it hasn't exactly been best operating environment for retailers, yet we have grown our business, I mentioned, fivefold in the last 5 years on the top line -- or 6 years, sorry. And we've been able to do that because we've further penetrated the market. When you're dealing with a $50 billion market and you're only 2 percentage points of it, you've got the ability to basically take business from other people, and that's what we're doing. So we will further penetrate our existing clients and we will get new clients, thus displacing people that are already in there. So again, we don't necessarily need the economy to turn but it's certainly helpful if unemployment was lower and taxes were less.

Ross Sandler - Deutsche Bank AG, Research Division

Let's dig into the segments a little bit. So if we can start with the DoD. How does the sequestration and all this defense budget cut activity impact the business, if at all? Are you going to see...

James M. Rallo

Sure. Yes, good question, Ross. So I think, again for those that aren't very familiar with our business, we talk a lot about the retail and a lot of capital assets. We get a -- 20% of our capital assets are coming from the Department of Defense. Actually, our first large client, if you would, was the DoD. We won our original contract with them back in 2001. We've been working with the DoD for over 12 years now. We've got 2 contracts, 1 is to sell surplus products for them, the other is scrap. Basically, the only difference is scrap is just selling mostly scrap metal. So we sell 60% to 70% of that is scrap steel and aluminum, this comes from either cut-up battleships, cut-up tanks, shredded planes or cargo planes, we'll sell for scrap. Again, this is high-value stuff when you think about it, knockdown storage units or something like that, that are steel aluminum framing. Again, it's mostly scrap metal. So that's about 6% to 7% of our business, again not a large part, the scrap piece. And then there's another about 14% of our business that's selling surplus stuff from the DoD, which can be anything from cement barriers to medical and test equipment, aerospace parts, cranes, trucks, we sell a lot of vehicles to the DoD, barges. I mean, you name it. Anything you can think of, we sell to the DoD. We do not sell militarized items. So we don't sell any kind of specialty tech. We obviously don't sell anything that's armored or anything like that, certainly no weaponry. But our -- when you look at the DoD again, it used to be a much larger piece of our business. In fact, in 2006 when we went public, it was about 80% of our business. Again today, it's about 21%. And there's been a lot of talk of well, what's going to happen if the DoD has to cut their budget. And I mean, I think there was a good article, actually, in USA Today about 2 weeks ago on what is going to have to happen. And I think the DoD has laid out a plan which is that if they do need to downsize, I think the Army is unfortunately going to take the brunt of that. And probably, that's going to mean shutting down bases. And to the extent that the DoD has to downsize, shut down bases, that's actually beneficial to our business because, when they do that, that generates more stuff for us to sell. And so I think, when you look at sort of the next 5 to 10 years of the DoD, I think what you're going to see is, yes, it's going to be a smaller, more efficient Department of Defense. And I think that's going to mean less bases, and I think that's going to be beneficial to us. Now the timing of that is, frankly, difficult to tell. The DoD does not move quickly. And so there's been an initiative, actually, out there for a while called BRAC, which is base realignment and closing, where they actually thought about they were going to kind of rightsize the number of bases they had. They felt that they had too many bases and they're going to try to consolidate. And to be frank, in 7 years, they've closed 8 bases out of over 300. So they really haven't made a lot of progress on that. And mostly, the reasons are political. I mean everyone thinks the DoD could be more efficient, and that's great to, say, in a macro environment. What happens is that, once you think about actually closing a base and the congressman associated with that area realizes, well, that base really keeps an entire town employed, it keeps the barbershop employed, the small boutique shops, the grocery store, the local car dealer, all those people are really supported by the activities of the base, and if you shut that base down, well, then that entire town goes down. So it becomes less political and more personal then. And there's been slower progress made. And I do think it is going to happen eventually. It's just timing of it's really tough to predict. And obviously, we wouldn't – we don't put that in our forecast or anything like that.

Ross Sandler - Deutsche Bank AG, Research Division

So benefit, meaning that business has been kind of a high-single-digit grower, the DoD surplus. And potentially, if these things do come to fruition, it could go up a little bit from there and stay there, potentially?

James M. Rallo

Absolutely. I think there's potential for that. Again, we're not assuming that, but that could happen, yes.

Ross Sandler - Deutsche Bank AG, Research Division

Okay. And then the other -- one other area of kind of kind of debate is around the take rate in scrap and surplus. I mean, scrap is disclosed, so there's no debate there, but surplus, without going into too much specifics, where does the take rate in that business stand relative to kind of the broader Liquidity Services average take rate?

James M. Rallo

Sure. So when you think about how we get paid, Ross mentioned the take rate, I mentioned before, 60% of our business is consignment. And I talked about our take rate being again anywhere from 10% to 12% on the lower side to as high as 20% to 25%. The take rate, which by the way, we're not on a consignment basis on the surplus contract. We actually buy the goods from the DoD, but we have terms where we pay for them and then, again, we pay the amount over several months. But that is our highest take-rate business. It's also our highest level of service business. So we have over 300 people around the country on 82 bases providing services for the DoD. We spend a lot of time on technology. We've created an intranet for the DoD. Part of the mission at the group that we work with is the Defense Logistics Agency, which is the division of the DoD that we work with, part of their mission is try to reutilize a lot of these assets before they actually sell them. So like, for example, we've created an intranet, so if somebody, say, in the Army, has a truck they don't need and somebody in the Navy would like it, they can try to reutilize that truck. That obviously would be great. Frankly, it doesn't happen as often as one would think, but it's a service that we provide. So again, there's also a lot of compliance aspect around that contract. The DoD is very concerned that they don't sell things that are on their own do-not-sell list. Some of these things may be very innocent to folks like you and I. For example, we don't sell anything associated with F-14. We haven't flown F-14 in ages, but as many people may know, the -- Iran is probably still flying a few F-14, so even though those parts really are only worth scrap value, we do not sell any of those. And so for example, we've got -- once, we got a couple sewing machines that were actually used to sew up the fighter F-14 pilot seat, right? So you think, hey, that's pretty innocent, right, sewing machines? Who really cares, right? We can sell those. But no, that's on our do-not-sell list because, again, they were associated with an F-14. And again, that seems like something small to us, but for them, if we were to actually get those and then sell them, that would be a compliance failure. So we have never had a compliance failure. We've got a 100% rate with the DoD, performance rate with the DoD. And so that really is driven by technology. We scan every single item in that the DoD gives us against, they have what's called an NSN number, a national security number. It's kind of like the SKU code but with a lot more specifics. And we get a real-time feed from them, and that tells us whether or not we can accept an item that they give us or not. And so there's a lot of value-added services that go with the DoD. So my point is that, with all of our businesses, we have a higher or a lower fee based on the amount of services we're providing. And the DoD would probably have our highest level of service that we're providing for any client.

Ross Sandler - Deutsche Bank AG, Research Division

I'm going to open up for questions in -- right here over, yes, I've got a couple.

Unknown Analyst

[indiscernible].

James M. Rallo

Sure. The question was the slowdown in the retail growth. And again, I want to point out that we're talking about a slowdown in growth, not a shrinking of the business, okay? It's -- I want to make sure we're -- we understand the metrics here. We're really talking about maybe a 5% swing in growth rate from what should have been an over-20% organic growth business this year to what we perceive as a 15%-growth-rate business this year. Again, but that's -- and that's half of our business is retail. So the question was, is there something macro going on? Or is there something that we tactically made an error in? It was not a tactical error. So we have not seen -- we made clear on our last earnings call, and the transcript was 8-K-ed, my comments and Bill Angrick's comments, our CEO, you feel free to read, but this is new information from us: We've never really had, in our company history, a time when we haven't seen some growth out of our existing programs. And that's not to say that we don't have some existing programs that are growing. But when you look in aggregate of our existing client base and you take -- again these are programs that have been running for more than a year, we're not seeing growth in that business. Now that doesn't mean that they're not going to grow the rest of the year. They may grow the rest of the year. But from us, how we -- for us, how we forecast is we take the data that we have at the time that we're making our forecast for the rest of the year and that's what we roll forward. So we don't hope that we're going to all of a sudden start to see growth in our existing client programs. We've assumed for the rest of this year we're not going to see any existing client program growth. Now that may turn out to be too conservative, it may not, but that's just how we do our model. I think, as far as the macro environment, and again I addressed that earlier, I'm not really saying anything that a lot of large retailers haven't had. If you follow Amazon and you saw Amazon's quarterly announcement and you actually listened to what they said about different verticals for them such as consumer electronics, toys, household effects and so forth, it's really no different than what was leaked in the Wall Street Journal, that internal emailed from Walmart, I don't know if any of you have seen that. But again, that was specifically addressing some of the same things that Amazon had talked about, about weak sales in a lot of the core drivers for retail growth. I mean clothing and apparel has been fairly steady. That's really kind of considered almost a staple, if you would, in retail. But the rest of retail has been fairly weak, whether again it was Best Buy, Amazon, Walmart. I mean, the data really is all triangulating on the same point.

Ross Sandler - Deutsche Bank AG, Research Division

What was the second half?

Unknown Analyst

My second question, [indiscernible].

Ross Sandler - Deutsche Bank AG, Research Division

The question was if you have a bunch of base closures will that move the needle in terms of growth?

James M. Rallo

Yes, so I think when you look at base closures, I mean, we've seen 8 in the last 7 years, that obviously didn't move the needle. As far as, like, the absolute number of closures we would need every year to move the needle, I mean, if we could see 8 to 10 bases a year, I guess that would be helpful. We could probably get a few percentage points growth out of that. It's tough to say, to be honest with you, because we don't really have any data to support that, meaning that we just haven't been in an environment ever in the last 12 years with the DoD that we've seen them close any significant number of bases. So it's really -- would be really tough to predict at this point. Certainly, it would move us into double-digit growth from the single-digit growth that we expect on an aggregate basis with the 2 contracts.

Ross Sandler - Deutsche Bank AG, Research Division

Any more questions? Can we talk quickly about Walmart? So how would you characterize your relationship with the company today? And can you remind us when the Walmart agreements are up for renewal, that you plan on growing? Are you tapped out in terms of growth? Or is there still growth opportunity within the Walmart account?

James M. Rallo

Sure. Well, again, I mean, I think our estimate of how much business we do with Walmart is probably 1/3. Again, we don't know that for sure. They don't give us that information. So again, we feel like we're probably 1/3 penetrated. They use a lot of other liquidators for different programs. And again, I mean, Walmart has a portfolio effect so we're never going to get all of their business, or at least it would be -- we certainly wouldn't assume that. What percentage can we get to? Frankly, we don't know. Hopefully, it's -- we think it's certainly more than what we have today. We're constantly talking to them strategically about ways we can advance their different programs whether it's sustainability, whether it's enhancing value that they have on programs they're doing with other people. But our relationship with Walmart is excellent. We have really one major contract with them that goes through May of 2016 and then has sort of a 1-year auto-renewal after that, which can be made 2017. And that's most of our Walmart business. But we also have a lot of other smaller programs that we do with them. At any one time, we can have as many as 10, 12, 20 other smaller programs going with Walmart for whatever their specific needs are. So when you have a large client like that, you're -- again, you're embedded into the process. You're constantly trying to help them think about how they're dealing with their reverse logistics. It's really more of a consulting relationship at that point than a sales relationship. But we do, obviously, see opportunity with Walmart. The relationship is extremely well at the middle-management levels, higher-management levels. We're seen as a partner trying to move their business strategy forward.

Ross Sandler - Deutsche Bank AG, Research Division

Okay. We've got to wrap there.

James M. Rallo

All right, thanks. Appreciate it, Ross.

Ross Sandler - Deutsche Bank AG, Research Division

Thanks.

James M. Rallo

Thanks, everyone.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Liquidity Services' Management Presents at Deutsche Bank's DbAccess 21st Annual Media and Telecom Conference (Transcript)
This Transcript
All Transcripts