Liquidation World Inc.
TSX : LQW

Liquidation World Inc.

October 17, 2007 08:00 ET

Liquidation World Announces Fiscal 2007 Revenue

BRANTFORD, ONTARIO--(Marketwire - Oct. 17, 2007) - Liquidation World Inc. (TSX:LQW) today announces revenue for fiscal 2007 and the fourth quarter of fiscal 2007.

Revenue for fiscal 2007, comprising 53 weeks of operations ended October 7, 2007, increased 1.8% to $212.0 million from $208.2 million during fiscal 2006, which comprised 52 weeks of operations. Fiscal 2007 same store sales decreased 8.9% in operational currency from prior year. (Due to the anomalous 53-week year in fiscal 2007, the annual same store sales calculation is based on a comparison of the first 52 weeks of each year.) During the prior fiscal year, same store sales had increased by 10.1%.

Revenue for the fourth quarter, comprising 14 weeks of operations ended October 7, 2007, increased 0.7% to $53.3 million from $52.9 million during the fourth quarter of last year, which comprised 13 weeks of operations. Fourth quarter same store sales decreased 16.4% in operational currency from prior year. (Due to the anomalous 53-week year in fiscal 2007, the fourth quarter same store sales calculation is based on a comparison of the first 13 weeks of the fourth quarter of each year.) During the same period last year, same store sales had increased by 11.2%.

On August 24th, 2007 the Company announced plans to wind down its US retail operations. That process is presently underway and the Company expects to close 15 of its 18 US retail outlets by October 31, 2007. Liquidation World's fiscal 2007 sales total includes all revenue from Liquidation World's US outlets.

Liquidation World will release complete financial results in mid-December 2007.

Liquidation World President and CEO Jonathan Hill said, "Fiscal 2007 saw record sales, aided by the addition of new stores, but very disappointing same store sales performance. We have learned to expect some sales volatility in our business because our sources of supply and the goods we offer for sale change constantly. It became apparent as the year unfolded that same store sales would decline because we could not match the hurricane deals of fiscal 2006. Additionally, the organizational effort and resources expended during the year to open 19 new stores and close 7 stores, consolidate our corporate offices to Brantford, Ontario and plan the wind-down of our US operations detracted from the performance of our established stores.

As we enter fiscal 2008, we have been working towards a leaner overhead structure and are committed to return the company to profitability despite this sales volatility. We also have a stronger Canadian store base that will help to replace the revenue lost as a result of the impending US store closures. While we have commitments to open 5 additional Canadian stores during the first quarter of fiscal 2008, the pace of new store growth will decline during 2008, allowing us more time to focus on attracting new customers and driving sales in established markets."

About Liquidation World

Liquidation World liquidates consumer merchandise in Canada through 100 retail outlets. The Company solves asset recovery problems in a professional manner for the financial services industry, insurance companies, manufacturers, wholesalers and other organizations. Liquidation World is based in Brantford, Ontario and maintains a number of regional buying offices in Canada and the United States. The Company opened its first retail outlet in Calgary, Alberta in 1986 and today, with more than 1,600 employees, is Canada's largest liquidator.

Forward-Looking Statements

This release includes forward-looking statements and potential future circumstances and developments. Forward-looking statements regarding future performance are subject to risks and uncertainties, and actual results may differ materially. Due to fluctuations in gross margins and other expenses, an increase in revenue does not directly correlate to an increase in net earnings.

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