Great American Group Announces Second Quarter 2013 Financial Results
(firmenpresse) - WOODLAND HILLS, CA -- (Marketwired) -- 08/14/13 -- Great American Group, Inc. (OTCBB: GAMR) ("Great American Group" or the "Company"), a leading provider of asset disposition, valuations, appraisals, real estate consulting and capital investment services, today announced financial results for its second quarter ended June 30, 2013.
For the second quarter ended June 30, 2013, the Company reported total revenues of $15.2 million, a decrease from $19.7 million in the second quarter of 2012. Revenues from services and fees decreased to $12.2 million, compared to $13.3 million in the same period the prior year. Revenues from sale of goods were $3.0 million, compared to $6.4 million in the second quarter of 2012. The decrease in revenues during the quarter was primarily due to a decrease in revenues of $5.9 million in the auction and liquidation segment, offset by an increase in revenues of $1.4 million in the valuation and appraisal services segment and an increase in revenues of $0.1 million in the UK retail store segment.
"During the quarter we experienced a slowdown in activity as opportunities in both the United States and overseas remained subdued," said Andrew Gumaer, Chief Executive Officer of Great American Group. "As we've said before, the liquidation business is inherently lumpy and activities tend to fluctuate on a quarterly basis throughout the year. Nonetheless, we are seeing a modest pick-up in the third quarter, including our liquidation of 18 Orchard Supply Hardware stores. We will continue to monitor our investments in our newer business initiatives to help us improve returns for our shareholders."
Direct cost of services were $5.6 million, compared to $5.0 million a year ago. Selling, general and administrative expenses were $10.0 million, compared to $9.8 million in the second quarter of 2012. The increase was primarily due to (a) an increase in selling, general and administrative expenses of $0.5 million in the valuation and appraisal segment; (b) an increase in selling, general and administrative expenses of $0.5 million in the UK retail store segment; and (c) an increase in selling, general and administrative expenses of $0.6 million in corporate and other; offset by a decrease in selling and administrative expenses of $1.3 million in the auction and liquidation segment.
Interest expense during each of the second quarters in 2013 and 2012 was $0.6 million. Interest expense included $0.5 million of interest expense on the notes payable to the Great American Members and Phantom Equity holders, and $0.1 million of interest expense on the Company's borrowings under its revolving credit facility and letter of credit fees and amortization of deferred loan fees on our asset based credit facility.
Operating loss for the second quarter of 2013 was $1.9 million, compared to operating income of $0.8 million during the second quarter of 2012.
Pretax loss was $2.6 million compared to pretax income of $1.5 million in the second quarter of 2012. Net loss in the second quarter of 2013 was $1.5 million compared to net income of $0.6 million for the second quarter of 2012. Diluted net loss per share was $(0.05) in the second quarter of 2013 compared to diluted net income per share of $0.02 in the second quarter of 2012.
For the six months ended June 30, 2013, the Company reported total revenues of $36.2 million, compared to $39.0 million in the first six months of 2012. Revenues from services and fees were $30.9 million, compared to $30.2 million a year ago. Sales of goods were $5.3 million compared to $8.8 million in the same period of 2012.
Total operating expenses for the first six months of 2013 and 2012 were flat at $35.8 million. Operating income was $0.4 million, compared to $3.2 million in the prior year. Pretax loss was $0.9 million for the first six months of 2013, compared to pretax income of $3.3 million during the same period in 2012. The Company recorded a benefit for income taxes of $0.2 million during the first six months of 2013, compared to a provision for income taxes of $0.8 million in the same period of 2012. Net loss during the first six months of 2013 was $0.2 million, or $0.01 per diluted share, compared with net income of $1.7 million, or $0.06 per diluted share in 2012.
At June 30, 2013, the Company had $20.6 million in cash and cash equivalents and $1.2 million of restricted cash.
The Company will host a conference call today at 4:30 p.m. ET, to discuss results for the second quarter ended June 30, 2013. To participate in the event by telephone, please dial 877-407-0789, 10 minutes prior to the start time (to allow time for registration) and use conference ID: 418852. International callers should dial + 1 201-689-8562. A replay will be available beginning August 14, 2013, at 7:30 p.m. ET, through August 21, 2013, at 11:59 p.m. ET. To access the replay, please dial 877-870-5176 (U.S.), and use passcode 418852. International callers should dial +1 858-384-5517 and enter the same passcode.
The call will also be broadcast over the Internet and can be accessed on the Investor Relations section of the Company's website at . A replay of the call will also be available for 90 days on the website.
(OTCBB: GAMR)
Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, Melville, N.Y., New York, Norwalk, Conn., San Francisco, London, Milan and Munich. For more information, call (818) 884-3737 or visit .
This press release may contain forward-looking statements by Great American Group that are not based on historical fact, including, without limitation, statements containing the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions and statements. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Such factors include those risks described from time to time in Great American Group's filings with the SEC, including, without limitation, the risks described in Great American Group's proxy statement/prospectus filed with the SEC on May 16, 2013, and its Annual Report on Form 10-K for the year ended December 31, 2012. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and Great American Group undertakes no duty to update this information.
Certain of the information set forth herein, including Adjusted EBITDA, may be considered non-GAAP financial measures. Great American Group believes this information is useful to investors because it provides a basis for measuring Great American Group's performance against the contingent share earnout provisions in the AAMAC transaction. In addition, Great American Group's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating Great American Group's operating performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by Great American Group may not be comparable to similarly titled amounts reported by other companies.
Great American Group
Phillip Ahn
Chief Financial Officer & Chief Operating Officer
818-884-3737
Addo Communications
Patricia Nir
310-829-5400
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Datum: 14.08.2013 - 20:00 Uhr
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