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Liquidity Services partners for industrial asset sale

Published 26/08/2024, 14:24
LQDT
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BETHESDA, Md. - Liquidity Services (NASDAQ:LQDT), a company specializing in the circular economy, has announced a partnership with Aaron Industrial Solutions (AIS) to sell over 60 unused cryogenic heat exchangers for a leading global industrial gases company. The sale, which is the first in a series for this energy leader in China, is currently live on AllSurplus.com, with bidding open until 4:00 am EDT on August 31, 2024.

The assets available include high-value Sumimoto cryogenic aluminum brazed fin heat exchangers, built to American Society of Mechanical Engineers (ASME) code and are National Board registered. The equipment for sale consists of Argon Condensers, Nitrogen Superheaters, Refined AR Column Condensers, and more, all unused and designed for various services.

Hugh Yu, Managing Director of APAC at Liquidity Services, expressed pride in launching the first sale with the global energy company, emphasizing the detailed planning and the intention to utilize both local and global resources to ensure the success of the event. Peder Grimstrup, Managing Director at AIS, highlighted the significance of the partnership and the commitment to sustainability in the disposal of these surplus assets.

AllSurplus, the platform hosting the sale, is known as a leading online marketplace for surplus business assets, offering a smart and efficient way for sellers to manage their listings with more control and lower fees than traditional auction methods. The platform is part of Liquidity Services’ network, providing buyers with direct access to surplus assets across various marketplaces.

Interested buyers for the current sale are required to create an account on AllSurplus.com by completing a free registration form. This partnership between Liquidity Services and AIS represents a strategic move to monetize unused assets while adhering to sustainable practices in asset disposal.

This sale event is based on a press release statement from Liquidity Services, Inc.

In other recent news, Liquidity Services Inc. disclosed its earnings call transcript, providing insight into the company's performance and management's views on operational aspects. The document, now publicly available, was furnished through an 8-K filing with the Securities and Exchange Commission.

In further developments, Liquidity Services Inc. reported a record-setting third quarter for fiscal year 2024, with a gross merchandise volume (GMV) of $380 million, the highest quarterly performance in the company's history. The GovDeals segment recorded a GMV of $250 million, contributing significantly to this achievement. Despite softened prices in the GovDeals segment and delayed asset sales in the Capital Assets Group (CAG) segment, the company projects double-digit consolidated GMV growth in the fourth quarter.

In addition, Liquidity Services Inc. highlighted robust non-GAAP adjusted EBITDA and GAAP net income, the strongest in a decade. The company also revealed significant growth across all segments, backed by strategic investments in platform enhancements and AI technology to improve user experience. These recent developments underscore Liquidity Services Inc.'s resilience and focus on technological innovation.

InvestingPro Insights

As Liquidity Services (NASDAQ:LQDT) embarks on its partnership with Aaron Industrial Solutions to offer high-value cryogenic heat exchangers, the company's financial health is of interest to potential investors. With a robust market capitalization of $684.84 million, Liquidity Services holds more cash than debt, showcasing a strong balance sheet. This is a crucial aspect for stakeholders considering the company's capacity to invest in new ventures and partnerships.

The company's impressive gross profit margin, which stands at 53.93% for the last twelve months as of Q3 2024, indicates efficient operations and a solid competitive edge in the industrial auction marketplace. Moreover, Liquidity Services has experienced a significant revenue growth of 8.6% over the same period, suggesting that the business is expanding its reach and improving its market share.

Investors should note the company's substantial price appreciation, with a 26.94% return over the last six months, reflecting positive market sentiment. This performance aligns with the InvestingPro Tip highlighting a strong return over the last three months, which could be a signal of the company's momentum in the market. Additionally, analysts predict the company will be profitable this year, reinforcing the potential for sustained growth.

For those interested in further analysis and additional insights, InvestingPro offers a total of ten InvestingPro Tips for Liquidity Services, which can provide deeper understanding of the company's performance and future prospects. Visit https://www.investing.com/pro/LQDT for more exclusive tips and real-time analytics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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