Great American Group Cuts Losses in Q4

Great America Group Inc. had lower losses for its fourth quarter while the company’s revenues dropped due to less activity in its auction and liquidation segment. The Woodland Hills-based company provides asset disposition, valuation and appraisal services. For the fourth quarter that ended Dec. 31, the company had a net loss of $1.9 million, or $0.07 per diluted share, on revenues of $11 million. For the same period the previous year, the company had a net loss of $4.5 million, or $0.16 per diluted share, on revenues of $11.5 million. The quarter’s decline in total revenues was primarily due to the decrease in revenues generated from the sale of goods in the company’s auction and liquidation segment. This was offset by a modest increase in revenues from services and fees. “Relative to the first half of 2010, we saw an improvement in the business in the second half of the year,” said Andrew Gumaer, CEO of Great American Group. “The cost reduction initiatives that we employed at the end of the third quarter had a financial benefit to us in the fourth quarter. Going forward, we continue to build upon our newer initiatives such as GA Keen Realty Advisors, GA Capital and GA Europe and expect these businesses to complement our core business in the near future.” For the full fiscal year in 2010, the company had a net loss of $11 million, or $0.39 per diluted share, on revenues of $42.1 million. For 2009, the company had net income of $17 million, or $0.91 per diluted share, on revenues of $83.4 million. The decrease in revenues was primarily due to a $40.6 million decrease in revenues generated in the company’s auction and liquidation segment in 2010 as compared to the same period in 2009. That segment was negatively impacted by fewer liquidation engagements during the year as economic conditions for retailers and credit markets improved from the previous year. Jessica Vernabe