 GMV of 130.1 million -- GAAP Revenue of 47.7 million -- GAAP Net Income of 0.2 million Non-GAAP Adjusted EBITDA of 3.7 million Online marketplace platform gains momentum by providing safe, effective commerce solutions during COVID-19 pandemicBETHESDA, Md., Aug. 06, 2020 GLOBE NEWSWIRE -- Liquidity Services NASDAQ: LQDT; a global solution provider in the reverse supply chain with the worlds largest marketplace for business surplus, today announced financial results for the third quarter fiscal year 2020 ended June 30, 2020. The Companys Q3-FY20 performance showed improving top line trends in the second half of the quarter as businesses and governments re-opened from government ordered closures due to the COVID-19 pandemic which, combined with cost control measures, generated positive GAAP Net Income, GAAP EPS and Adjusted EBITDA.Retailers, manufacturers and government agencies embraced our safe and reliable solution to conduct commerce, even under the most trying circumstances, during Q3-FY20 which foreshadows the long-term value that Liquidity Services will have in the evolving economy and e-commerce space. In turn, we continue to provide buyers around the globe convenient access to the inventory and equipment they require to meet their business needs. The investments we have made in our marketplace platform and IT infrastructure the past few years has enabled our team to deliver strong results for our sellers and buyers who are largely seeking efficient, no-contact solutions, said Bill Angrick, Chairman and CEO of Liquidity Services. Notwithstanding the volatile environment, we delivered strong results during the quarter. Our top line results were primarily impacted by the closing of the economy in the month of April and then saw steady increases throughout the rest of the quarter as both government agencies and corporations began to welcome employees back to physical locations and sought to monetize assets, Angrick continued. In light of this dynamic, and despite a very tough start to the quarter, GMV in our Retail RSCG segment grew 14, GMV in our CAG segment declined 18 excluding DoD Scrap, and GMV in our GovDeals segment declined 36 compared to the prior year. Our Machinio segment revenue increased 23 over the prior year driven by our cost-effective lead generation solutions for equipment sellers. In addition to the benefit from the acceleration of our top line over the course of the quarter, our bottom line results benefited from the actions we took in April to conserve our resources, resulting in positive GAAP Net Income, GAAP EPS and Adjusted EBITDA, as well as strong cash generation. These results speak to the dedication and ingenuity of our entire team to consistently deliver outstanding service and solutions in the reverse supply chain, regardless of the circumstances.During Q3-FY20, we further enhanced the features and functionality of our new consolidated marketplace, AllSurplus.com, which enables a low-touch solution to sell assets online eliminating the need for live, in-person exchanges. Compared to Q2FY20, our increased promotion of AllSurplus resulted in a 148 increase in buyer registrations, a 119 increase in traffic, a 161 increase in unique bidders, and a 65 increase in direct transactions on the AllSurplus marketplace. We continue to see early adoption of this new marketplace and its self-service model as sellers have an increased desire to shift to primarily cloud-based business processes. We believe our self-service solution over time will be an attractive growth opportunity as business sellers and buyers continue to adapt to social distancing guidelines due to the pandemic. Moreover, by aggregating supply on AllSurplus, we are providing buyers and sellers more opportunities to quickly transact across a wide array of products, including heavy equipment, energy and manufacturing equipment.The company exited the quarter with a cash position of 72.7 million and zero debt, an increase in cash of 20.9 million from Q2FY20.Evolving Response to COVID-19 Pandemic Last quarter we announced several safety measures and temporary cost control measures to protect both our employees and our business during the COVID-19 global pandemic. While we are still strictly abiding by all social distancing and safety measures in keeping the current health-expert recommendations, the performance of the company has enabled us to review and modify selected cost control measures including: restoring full pay and providing back pay for all salary reductions for our current permanent workforce; returning a portion of furloughed employees back to full-time status, mainly in our sales department; resuming technology and marketing investments over the next quarter.Third Quarter Consolidated Operating and Earnings Results The Company reported Q3-FY20 GMV of 130.1 million, down from 168.1 million in the prior years comparable period, including the completion of the DoD Scrap contract. GMV is an operating measure of the total sales value of all merchandise sold by us or our sellers through our marketplaces and other channels during a given period of time. GAAP Revenue for Q3-FY20 was 47.7 million, down from 56.9 million in the prior year. GMV declined 22.6 and GAAP Revenue declined 16.1 compared to the prior year, inclusive of the completion of the DoD Scrap contract. GAAP Net Income for Q3-FY20 was 0.2 million, which resulted in diluted earnings per share of 0.01 based on a weighted average of 33.8 million diluted shares outstanding, compared to GAAP Net Loss of 4.6 million and negative 0.14 respectively, in the prior year. Our Non-GAAP adjusted net income excludes stock compensation expense, impairment and business realignment expenses, acquisition costs, deferred revenue purchase accounting adjustments, fair value adjustments to acquisition earn-outs, and the estimated impact of income taxes on these Non-GAAP adjustments and non-recurring tax adjustments. For Q3-FY20 our non-GAAP adjusted net income was 1.8 million or 0.05 adjusted diluted earnings per share, an increase compared to the prior year period non-GAAP adjusted net loss of 1.5 million and negative 0.05 adjusted diluted loss per share.Non-GAAP Adjusted EBITDA, which excludes stock-based compensation expense, acquisition costs such as transaction expenses and changes in earn-out estimates, business realignment expense, deferred revenue purchase accounting adjustments, and goodwill and long-lived asset impairment, was 3.7 million, an increase from the same period last year of 0.2 million.Q3-FY20 comparative year-over-year consolidated financial results reflect the impact of government and business closures resulting from the COVID-19 pandemic, completion of the DoD Scrap contract, and reduced operating expenses. GMV in our RSCG segment increased 14 compared to the prior year, despite the slowing of seller activity in April, as retailers adjusted to changes in consumer behavior and business buyers sought to meet an increasing demand for discount goods from consumers. GMV in our GovDeals segment decreased by 36, which reflected the impact of government facilities in the US and Canada being shut down throughout April, thereby limiting seller volume on our marketplace and preventing buyers from picking up assets. Our CAG segment GMV declined 28, including the impact of the wind down of our DoD Scrap contract, as activity across verticals was significantly reduced in the first part of the quarter related to COVID-19 business closures. Along with steady improvements in top line performance in the months of May and June, the actions we took to reduce operating expenses as a result of the COVID-19 pandemic benefited Q3-FY20.Third Quarter Segment Operating and Earnings Results We present operating results in four reportable segments: GovDeals, RSCG, CAG and Machinio. Each segment currently offers separately branded marketplaces to enable sellers to achieve channel marketing objectives to reach buyers. Across our segments, we offer our sellers various pricing and transaction models and a suite of services, and our revenues vary depending upon the pricing models employed and the level of service selected by sellers. Our Q3-FY20 segment results are as follows unaudited, in millions: Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 GovDeals1: GMV 57.9 90.9 214.3 244.6 Revenue 6.0 9.3 21.9 24.6 Gross profit 5.6 8.6 20.4 22.7 RSCG: GMV 45.0 39.6 129.2 116.9 Revenue 33.6 31.3 101.5 94.8 Gross profit 12.0 10.9 34.7 32.7 CAG2: GMV 27.2 37.7 79.5 120.1 Revenue 6.4 14.9 21.4 44.1 Gross profit 5.9 7.8 16.6 25.3 Machinio: GMV Revenue 1.8 1.5 5.3 3.8 Gross profit 1.7 1.4 5.1 3.5 Corporate Other3: GMV 0.5 Revenue 0.5 Gross profit 0.1 Consolidated: GMV 130.1 168.1 423.0 482.1 Revenue 47.7 56.9 150.1 167.7 Gross profit 25.2 28.6 76.8 84.2 1GovDeals consists of the state and municipal government business. Through Q4 FY19 this includes commercial self-directed GMV as part of our Auction Deals marketplace, which beginning in Q1 FY20 is reflected in the CAG segment. 2CAG consists of our energy and industrial commercial verticals, our DoD Scrap contract, and beginning in Q1 FY20 commercial transactions within our unified marketplace, which was previously referred to as AuctionDeals. 