Liquidity Services, Inc. (NASDAQ:LQDT) Q1 2023 Earnings Call Transcript

Gary Prestopino: Okay. Thank you. And then just two more quick questions. Number one, it looks like the cash was down fairly substantially sequentially. I know you bought back some stock, but what accounts for the rest of that cash balance going down, Jorge?

Jorge Celaya: So we did have a little timing difference at the very, very end of the quarter on our financial settlements with customers, where we normally would have had that happen in the last few days of December, but with the holidays and frankly, with the change in our banking, it just as falling into January. So that’s actually a part of it that you don’t see, but it also explains on the balance sheet, why their some of the payables to customers ended up €“ the net ended up a little different. And then — yes, and then there’s the buyback, right, which is 7.5 million or 7, whatever, right? So — those are the two biggest things, I’d say. But nothing otherwise unusual.

Gary Prestopino: Okay. And then lastly, it looks like your G&A expense was down about 10%. I would assume that, that is something dealing with the reversal of accruals for bonuses or something like that? And is that correct? And is that $7.4 million to $8 million, is that a good number for run rate throughout the rest of the year to finance if the EBITDA generation continues to be where it was in Q1 in that range.

Jorge Celaya: So to the first part, no, there’s nothing unusual in bonus accruals or anything. So there’s — I think on just the G&A in general, it’s well-managed G&A, and I would expect the rest of the year to be similar. I think even our tech and ops to be quite similar to the first fiscal quarter. It all goes up a little bit as you go, right? But the only thing that will dollar-wise go up more than the others and €“ but still be steady on a year-over-year percentage growth is the more variable sales and marketing.

Gary Prestopino: Okay. Thank you very much.

Operator: Thank you. Ladies and gentlemen, that concludes today’s call. Thank you for participating. You may now disconnect.