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Live Ventures Reports Fiscal Second Quarter 2024 Financial Results

Live Ventures Incorporated
Live Ventures Incorporated

LAS VEGAS, May 13, 2024 (GLOBE NEWSWIRE) -- Live Ventures Incorporated (Nasdaq: LIVE) (“Live Ventures” or the “Company”), a diversified holding company, today announced financial results for its second fiscal quarter ended March 31, 2024. 

Fiscal Second Quarter 2024 Key Highlights:

  • Revenue increased 30.2% to $118.6 million, compared to $91.1 million in the prior year period

  • Net loss was $3.3 million and diluted loss per share was $1.04, compared to prior year period net income of $1.6 million and diluted earnings per share (“EPS”) of $0.49

  • Adjusted EBITDA¹ was $4.5 million, compared to $9.2 million in the prior year period

  • Repurchased 11,849 shares of the Company’s common stock at an average price of $25.16 per share

  • Total assets of $433.9 million and stockholders’ equity of $95.9 million as of March 31, 2024

  • Approximately $36.0 million of cash and availability under the Company’s credit facilities as of March 31, 2024

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“Our second quarter revenue increased 30.2% compared to the prior year period, primarily driven by the strategic acquisitions of Flooring Liquidators, Inc. (“Flooring Liquidators”), and Precision Metal Works, Inc. (“PMW”), both of which were acquired in fiscal year 2023, as well as an increase in revenue in our Flooring Manufacturing segment,” commented David Verret, Chief Financial Officer of Live Ventures.

“Our second quarter revenue growth demonstrates our ability to expand our businesses through strategic acquisitions,” stated Jon Isaac, President and Chief Executive Officer of Live Ventures. “Despite industry-specific headwinds, we are committed to adapting to market changes, maintaining operational efficiency, and enhancing customer satisfaction. As we navigate the current market conditions, we’re confident about our business prospects and are steadfast in our commitment to our long-term strategy of ‘buy-build-hold.’ This approach underscores our belief in creating sustainable growth and value over time.”

Second Quarter FY 2024 Financial Summary (in thousands except per share amounts)

 

During the three months ended March 31,

 

 

2024

 

 

 

2023

 

% Change

Revenue

$

118,626

 

 

$

91,122

 

30.2

%

Operating Income (loss)

$

(838

)

 

$

4,952

 

N/A

Net income (loss)

$

(3,281

)

 

$

1,558

 

N/A

Diluted earnings (loss) per share

$

(1.04

)

 

$

0.49

 

N/A

Adjusted EBITDA¹

$

4,457

 

 

$

9,187

 

-51.5

%

 

 

 

 

 

 

 

 

 

 

Revenue increased approximately $27.5 million, or 30.2%, to approximately $118.6 million for the quarter ended March 31, 2024, compared to revenue of approximately $91.1 million in the prior year period. The increase is primarily attributable to the acquisitions of PMW, which was acquired during the fourth quarter of fiscal year 2023, and Flooring Liquidators, which was acquired during the second quarter of fiscal year 2023, which collectively added approximately $29.6 million, as well as an increase of approximately $3.8 million in revenue in the Flooring Manufacturing segment. The increase was partially offset by decreased revenue of approximately $5.9 million in the Company’s other businesses due to general economic conditions.

Operating loss was approximately $0.8 million for the quarter ended March 31, 2024, compared with operating income of approximately $5.0 million in the prior year period. The decrease in operating income is primarily attributable to the Retail-Flooring segment’s temporary inefficiencies associated with the acquisitions of Carpet Remnant Outlet, Inc. (“CRO”) and Johnson Floor & Home (“Johnson”) by Flooring Liquidators, which were closed during the first quarter of fiscal year 2024. The decrease was also attributable to the Steel Manufacturing segment’s decrease in gross margin primarily as a result of the acquisition of PMW, which has historically generated lower margins, as well as an overall decrease in margins in the Steel Manufacturing segment due to reduced production efficiencies as a result of lower demand.

For the quarter ended March 31, 2024 net loss was approximately $3.3 million, and diluted loss per share was $1.04, compared with net income of approximately $1.6 million and diluted EPS of $0.49 in the prior year period. The change in net loss is attributable to the operating loss and higher interest expense related to the acquisitions of Flooring Liquidators and PMW, net of income taxes.

Adjusted EBITDA¹ for the quarter ended March 31, 2024 was approximately $4.5 million, a decrease of approximately $4.7 million, or 51.5%, compared to the prior year period. The decrease is primarily due to decreases in gross profit and operating income.

As of March 31, 2024 the Company had total cash availability of $36.0 million, consisting of cash on hand of $4.5 million and availability under its various lines of credit of $31.5 million.

¹ Adjusted EBITDA is a non-GAAP measure. A reconciliation of the non-GAAP measures is included below.

Second Quarter FY 2024 Segment Results (in thousands)

 

During the three months ended March 31,

 

 

2024

 

 

 

2023

 

 

% Change

Revenue

 

 

 

 

 

Retail - Entertainment

$

16,842

 

 

$

19,188

 

 

-12.2

%

Retail - Flooring

 

32,032

 

 

 

20,769

 

 

54.2

%

Flooring Manufacturing

 

34,180

 

 

 

30,340

 

 

12.7

%

Steel Manufacturing

 

35,488

 

 

 

19,916

 

 

78.2

%

Corporate & other

 

84

 

 

 

909

 

 

-90.8

%

Total Revenue

$

118,626

 

 

$

91,122

 

 

30.2

%

 

 

 

 

 

 

 

During the three months ended March 31,

 

 

2024

 

 

 

2023

 

 

% Change

Operating Income (loss)

 

 

 

 

 

Retail - Entertainment

$

1,784

 

 

$

2,327

 

 

-23.4

%

Retail - Flooring

 

(3,023

)

 

 

(216

)

 

N/A

Flooring Manufacturing

 

1,978

 

 

 

2,406

 

 

-17.8

%

Steel Manufacturing

 

872

 

 

 

2,814

 

 

-69.0

%

Corporate & other

 

(2,449

)

 

 

(2,379

)

 

-2.9

%

Total Operating Income

$

(838

)

 

$

4,952

 

 

-116.9

%

 

 

 

 

 

 

 

During the three months ended March 31,

 

 

2024

 

 

 

2023

 

 

% Change

Adjusted EBITDA¹

 

 

 

 

 

Retail - Entertainment

$

2,153

 

 

$

2,652

 

 

-18.8

%

Retail - Flooring

 

(1,849

)

 

$

1,111

 

 

-266.4

%

Flooring Manufacturing

 

2,897

 

 

 

3,363

 

 

-13.9

%

Steel Manufacturing

 

2,331

 

 

 

3,670

 

 

-36.5

%

Corporate & other

 

(1,075

)

 

 

(1,609

)

 

33.2

%

Total Adjusted EBITDA¹

$

4,457

 

 

$

9,187

 

 

-51.5

%

 

 

 

 

 

 

Adjusted EBITDA¹ as a percentage of revenue

 

 

 

 

 

Retail - Entertainment

 

12.8

%

 

 

13.8

%

 

 

Retail - Flooring

 

-5.8

%

 

 

5.3

%

 

 

Flooring Manufacturing

 

8.5

%

 

 

11.1

%

 

 

Steel Manufacturing

 

6.6

%

 

 

18.4

%

 

 

Corporate & other

N/A

 

N/A

 

 

Total Adjusted EBITDA¹

 

3.8

%

 

 

10.1

%

 

 

as a percentage of revenue

 

 

 

 

 

 

 

 

 

 

 

Retail – Entertainment

Retail-Entertainment segment revenue for the quarter ended March 31, 2024 was approximately $16.8 million, a decrease of approximately $2.3 million, or 12.2%, compared to prior year period revenue of approximately $19.2 million. Revenue decreased primarily due to reduced consumer demand and a shift in sales mix toward used products, which generally have lower ticket sales with higher margins. The shift in sales mix also contributed to the increase in gross margin to 58.4% for the quarter ended March 31, 2024, compared to 55.5% for the prior year period. Operating income for the quarter ended March 31, 2024 was approximately $1.8 million, compared to operating income of approximately $2.3 million for the prior year period.

Retail – Flooring

The Retail-Flooring segment consists of Flooring Liquidators, which was acquired in January 2023. Revenue for the quarter ended March 31, 2024, was approximately $32.0 million, an increase of approximately $11.3 million, or 54.2%, compared to prior year period revenue of approximately $20.8 million. The increase is due to the acquisition of Flooring Liquidators in the second quarter of fiscal year 2023 and the acquisitions of CRO and Johnson by Flooring Liquidators during the first quarter of fiscal year 2024. The gross margin for the quarter ended March 31, 2024 was 36.5%, compared to 37.3% for the prior year period. Operating loss for the quarter ended March 31, 2024 was approximately $3.0 million, compared to an operating loss of approximately $0.2 million for the prior year period. The increase in operating loss was primarily due to temporary inefficiencies associated with the acquisitions of CRO and Johnson in the current period.

Flooring Manufacturing

Revenue for the quarter ended March 31, 2024 was approximately $34.2 million, an increase of approximately $3.8 million, or 12.7%, compared to prior year period revenue of approximately $30.3 million. The gross margin was 25.6% for the quarter ended March 31, 2024, compared to 24.2% for the prior year period. The revenue and gross margin increases are primarily due to increased sales associated with the acquisition of the Harris Flooring Group® brands in the fourth quarter of fiscal year 2023. Operating income for the quarter ended March 31, 2024 was approximately $2.0 million, compared to operating income of approximately $2.4 million for the prior year.

Steel Manufacturing

Revenue for the quarter ended March 31, 2024 was approximately $35.5 million, an increase of approximately $15.6 million or 78.2%, compared to the prior year period revenue of approximately $19.9 million. The increase is primarily due to increased revenue of approximately $18.3 million at PMW, partially offset by a $2.7 million decrease in the Company’s other Steel Manufacturing businesses. The gross margin was 14.3% for the quarter ended March 31, 2024, compared to 28.4% for the prior year period. The decrease in gross margin is primarily due to the acquisition of PMW, which has historically generated lower margins, as well as an overall decrease in margins in the Steel Manufacturing segment due to reduced production efficiencies as a result of lower demand. Operating income for the quarter ended March 31, 2024 was approximately $0.9 million, compared to operating income of approximately $2.8 million in the prior year period.

Corporate and Other

Revenue for the quarter ended March 31, 2024 was approximately $0.1 million, a decrease of approximately $0.8 million, or 90.8%, compared to the prior year period revenue of approximately $0.9 million. The decrease was primarily due to the closure of SW Financial in May 2023. Operating loss for both quarters ended March 31, 2024 and March 31, 2023 was approximately $2.4 million.

Six Months FY 2024 Financial Summary (in thousands except per share amounts)

 

During the six months ended March 31,

 

 

2024

 

 

 

2023

 

% Change

Revenue

$

236,219

 

 

$

160,108

 

47.5

%

Operating Income

$

2,703

 

 

$

9,519

 

-71.6

%

Net income (loss)

$

(3,963

)

 

$

3,402

 

N/A

Diluted earnings (loss) per share

$

(1.25

)

 

$

1.08

 

N/A

Adjusted EBITDA¹

$

13,153

 

 

$

16,727

 

-21.4

%

 

 

 

 

 

 

 

 

 

 

Revenue increased approximately $76.1 million, or 47.5%, to $236.2 million for the six months ended March 31, 2024, as compared to revenue of $160.1 million in the prior year period. The increase is primarily attributable to the acquisitions of PMW, and Flooring Liquidators, which collectively added $81.4 million, as well as an increase of approximately $6.7 million in revenue in the Flooring Manufacturing segment. The increase was partially offset by decreased revenue of approximately $11.9 million in the Company’s other businesses due to general economic conditions.

Operating income decreased to $2.7 million for the six months ended March 31, 2024, compared to $9.5 million in the prior year period. The decrease in operating income is primarily attributable to the Retail-Flooring segment’s temporary inefficiencies associated with the acquisitions of CRO and Johnson by Flooring Liquidators, which were closed during the first quarter of fiscal year 2024. The decrease was also attributable to the Steel Manufacturing segment’s decrease in gross margin primarily as a result of the acquisition of PMW, which has historically generated lower margins, as well as an overall decrease in margins in the Steel Manufacturing segment due to reduced production efficiencies as a result of lower demand.

For the six months ended March 31, 2024 net loss was $4.0 million and diluted loss per share was $1.25, compared with net income of $3.4 million and diluted EPS of $1.08 in the prior year period. The change in net loss is attributable to lower operating income and higher interest expense related to the acquisitions of Flooring Liquidators and PMW, net of income taxes.

Adjusted EBITDA for the six months ended March 31, 2024 was $13.2 million, a decrease of approximately $3.6 million, or 21.4%, compared to the prior year period. The decrease is primarily due to decreases in gross profit and operating income.

Six Months FY 2024 Segment Results (in thousands)

 

During the six months ended March 31,

 

 

2024

 

 

 

2023

 

 

% Change

Revenue

 

 

 

 

 

Retail - Entertainment

$

37,428

 

 

$

42,461

 

 

-11.9

%

Retail - Flooring

 

66,351

 

 

 

20,769

 

 

219.5

%

Flooring Manufacturing

 

63,425

 

 

 

56,772

 

 

11.7

%

Steel Manufacturing

 

68,841

 

 

 

37,897

 

 

81.7

%

Corporate & other

 

174

 

 

 

2,209

 

 

-92.1

%

Total Revenue

$

236,219

 

 

$

160,108

 

 

47.5

%

 

 

 

 

 

 

 

During the six months ended March 31,

 

 

2024

 

 

 

2023

 

 

% Change

Operating Income (loss)

 

 

 

 

 

Retail - Entertainment

$

4,973

 

 

$

5,991

 

 

-17.0

%

Retail - Flooring

 

(2,935

)

 

 

(216

)

 

N/A

Flooring Manufacturing

 

2,923

 

 

 

3,158

 

 

-7.4

%

Steel Manufacturing

 

1,855

 

 

 

4,270

 

 

-56.6

%

Corporate & other

 

(4,113

)

 

 

(3,684

)

 

-11.6

%

Total Operating Income

$

2,703

 

 

$

9,519

 

 

-71.6

%

 

 

 

 

 

 

 

During the six months ended March 31,

 

 

2024

 

 

 

2023

 

 

% Change

Adjusted EBITDA¹

 

 

 

 

 

Retail - Entertainment

$

5,867

 

 

$

6,656

 

 

-11.9

%

Retail - Flooring

 

(546

)

 

 

1,111

 

 

N/A

Flooring Manufacturing

 

4,774

 

 

 

5,147

 

 

-7.2

%

Steel Manufacturing

 

5,133

 

 

 

6,195

 

 

-17.1

%

Corporate & other

 

(2,075

)

 

 

(2,382

)

 

12.9

%

Total Adjusted EBITDA¹

$

13,153

 

 

$

16,727

 

 

-21.4

%

 

 

 

 

 

 

Adjusted EBITDA¹ as a percentage of revenue

 

 

 

 

 

Retail - Entertainment

 

15.7

%

 

 

15.7

%

 

 

Retail - Flooring

 

-0.8

%

 

 

5.4

%

 

 

Flooring Manufacturing

 

7.5

%

 

 

9.1

%

 

 

Steel Manufacturing

 

7.5

%

 

 

16.3

%

 

 

Corporate & other

N/A

 

N/A

 

 

Total Adjusted EBITDA¹

 

5.6

%

 

 

10.4

%

 

 

as a percentage of revenue

 

 

 

 

 

 

 

 

 

 

 

Retail - Entertainment

Retail-Entertainment segment revenue for the six months ended March 31, 2024 was approximately $37.4 million, a decrease of approximately $5.0 million, or 11.9%, compared to the prior year period revenue of approximately $42.5 million. The decrease in revenue is primarily due to reduced consumer demand and a shift in sales mix toward used products, which generally have lower ticket sales with higher margins. The shift in sales mix also contributed to the increase in gross margin to 57.1% for the six months ended March 31, 2024, compared to 53.8% for the prior year period. Operating income for the six months ended March 31, 2024 was approximately $5.0 million, compared to operating income of approximately $6.0 million for the prior year period.

Retail - Flooring

The Retail-Flooring segment consists of Flooring Liquidators, which was acquired in January 2023. Revenue for the six months ended March 31, 2024 was approximately $66.4 million, an increase of approximately $45.6 million, or 219.5%, compared to the prior year period revenue of $20.8 million. The increase is due to the acquisition of Flooring Liquidators in the second quarter of fiscal year 2023 and the acquisitions of CRO and Johnson by Flooring Liquidators during the first quarter of fiscal year 2024. The gross margin for both of the six months ended March 31, 2024 and March 31, 2023 was 37.3%. Operating loss for the six months ended March 31, 2024 was approximately $2.9 million, compared to an operating loss of approximately $0.2 million for the prior year period. The increase in operating loss was primarily due to temporary inefficiencies associated with the acquisitions of CRO and Johnson in the current period.

Flooring Manufacturing

Revenue for the six months ended March 31, 2024 was approximately $63.4 million, an increase of approximately $6.7 million, or 11.7%, compared to the prior year period revenue of approximately $56.8 million. The gross margin was 23.9% for the six months ended March 31, 2024, compared to 21.1% for the prior year period. The increase in revenue and gross margin are primarily due to increased sales associated with the acquisition of the Harris Flooring Group® brands in the fourth quarter of fiscal year 2023. Operating income for the six months ended March 31, 2024 was approximately $2.9 million, compared to operating income of approximately $3.2 million for the prior year period.

Steel Manufacturing

Revenue for the six months ended March 31, 2024 increased approximately $31.0 million or 81.7% to approximately $68.8 million, as compared to the prior year period revenue of $37.9 million. The increase is primarily due to increased revenue of approximately $35.8 million at PMW, partially offset by a $4.8 million decrease in the Company’s other Steel Manufacturing businesses. The gross margin was 15.0% for the six months ended March 31, 2024, compared to 26.5% for the prior year period. The decrease in gross margin is primarily due to the acquisition of PMW, which has historically generated lower margins, as well as overall decreased margins in the Steel Manufacturing segment due to reduced production. Operating income for the six months ended March 31, 2024 was approximately $1.9 million, compared to operating income of approximately $4.3 in the prior year period.

Corporate and Other

Revenue for the six months ended March 31, 2024 decreased by approximately $2.0 million to $0.2 million. The decrease was primarily due to the closure of SW Financial in May 2023. Operating loss for the six months ended March 31, 2024 was approximately $4.1 million, compared to an operating loss of approximately $3.7 million in the prior year period.

Non-GAAP Financial Information

Adjusted EBITDA

We evaluate the performance of our operations based on financial measures, such as “Adjusted EBITDA,” which is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation, amortization, stock-based compensation, and other non-cash or nonrecurring charges. We believe that Adjusted EBITDA is an important indicator of the operational strength and performance of the business, including the business’s ability to fund acquisitions and other capital expenditures and to service its debt. Additionally, this measure is used by management to evaluate operating results and perform analytical comparisons and identify strategies to improve performance. Adjusted EBITDA is also a measure that is customarily used by financial analysts to evaluate a company’s financial performance, subject to certain adjustments. Adjusted EBITDA does not represent cash flows from operations, as defined by generally accepted accounting principles (“GAAP”), should not be construed as an alternative to net income or loss, and is indicative neither of our results of operations, nor of cash flow available to fund our cash needs. It is, however, a measurement that the Company believes is useful to investors in analyzing its operating performance. Accordingly, Adjusted EBITDA should be considered in addition to, but not as a substitute for, net income, cash flow provided by operating activities, and other measures of financial performance prepared in accordance with GAAP. As companies often define non-GAAP financial measures differently, Adjusted EBITDA, as calculated by Live Ventures Incorporated, should not be compared to any similarly titled measures reported by other companies.

Forward-Looking and Cautionary Statements

The use of the word “Company” refers to Live Ventures and its wholly owned subsidiaries. Certain statements in this press release contain or may suggest “forward-looking” information within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, each as amended, that are intended to be covered by the “safe harbor” created by those sections. Words such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and similar statements are intended to identify forward-looking statements. Live Ventures may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 10-K and 10-Q, Current Reports on Form 8-K, in its annual report to stockholders, in press releases and other written materials, and in oral statements made by its officers, directors or employees to third parties. There can be no assurance that such statements will prove to be accurate and there are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the Company, including, but not limited to, plans and objectives of management for future operations or products, the market acceptance or future success of our products, and our future financial performance. The Company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023. Additionally, new risk factors emerge from time to time, and it is not possible for us to predict all such risk factors, or to assess the impact such risk factors might have on our business. Live Ventures undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.

About Live Ventures Incorporated

Live Ventures is a diversified holding company with a strategic focus on value-oriented acquisitions of domestic middle-market companies. Live Ventures’ acquisition strategy is sector-agnostic and focuses on well-run, closely held businesses with a demonstrated track record of earnings growth and cash flow generation. The Company looks for opportunities to partner with management teams of its acquired businesses to build increased stockholder value through a disciplined buy-build-hold long-term focused strategy. Live Ventures was founded in 1968. In late 2011 Jon Isaac, Chief Executive Officer and strategic investor, joined the Board of Directors of the Company and later refocused it into a diversified holding company. The Company’s current portfolio of diversified operating subsidiaries includes companies in the textile, flooring, tools, steel, and entertainment industries.

Contact:
Live Ventures Incorporated
Greg Powell, Director of Investor Relations
725.500.5597
gpowell@liveventures.com 
www.liveventures.com

Source: Live Ventures Incorporated

CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(dollars in thousands, except per share amounts)

 

March 31, 2024

 

September 30, 2023

 

(Unaudited)

 

 

Assets

 

 

 

Cash

$

4,489

 

 

$

4,309

 

Trade receivables, net of allowance for doubtful accounts of $1.1 million at March 31, 2024 and $1.6 million at September 30, 2023

 

45,510

 

 

 

41,194

 

Inventories, net

 

130,980

 

 

 

131,314

 

Income taxes receivable

 

 

 

 

1,116

 

Prepaid expenses and other current assets

 

4,430

 

 

 

4,919

 

Total current assets

 

185,409

 

 

 

182,852

 

Property and equipment, net

 

78,432

 

 

 

80,703

 

Right of use asset - operating leases

 

64,867

 

 

 

54,544

 

Deposits and other assets

 

1,579

 

 

 

1,282

 

Intangible assets, net

 

26,942

 

 

 

26,568

 

Goodwill

 

76,639

 

 

 

75,866

 

Total assets

$

433,868

 

 

$

421,815

 

Liabilities and Stockholders' Equity

 

 

 

Liabilities:

 

 

 

Accounts payable

$

26,466

 

 

$

27,190

 

Accrued liabilities

 

33,180

 

 

 

31,826

 

Income taxes payable

 

322

 

 

 

 

Current portion of lease obligations - operating leases

 

13,459

 

 

 

11,369

 

Current portion of lease obligations - finance leases

 

361

 

 

 

359

 

Current portion of long-term debt

 

31,396

 

 

 

23,077

 

Current portion of notes payable related parties

 

1,200

 

 

 

4,000

 

Total current liabilities

 

106,384

 

 

 

97,821

 

Long-term debt, net of current portion

 

75,322

 

 

 

78,710

 

Lease obligation long term - operating leases

 

56,678

 

 

 

48,156

 

Lease obligation long term - finance leases

 

33,023

 

 

 

32,942

 

Notes payable related parties, net of current portion

 

10,124

 

 

 

6,914

 

Seller notes - related parties

 

40,354

 

 

 

38,998

 

Deferred taxes

 

10,320

 

 

 

14,035

 

Other non-current obligations

 

5,795

 

 

 

4,104

 

Total liabilities

 

338,000

 

 

 

321,680

 

Commitments and contingencies

 

 

 

Stockholders' equity:

 

 

 

Series E convertible preferred stock, $0.001 par value, 200,000 shares authorized, 47,840 shares issued and outstanding at March 31, 2024 and September 30, 2023, respectively, with a liquidation preference of $0.30 per share outstanding

 

 

 

 

 

Common stock, $0.001 par value, 10,000,000 shares authorized, 3,148,135 and 3,164,330 shares issued and outstanding at March 31, 2024 and September 30, 2023, respectively

 

2

 

 

 

2

 

Paid in capital

 

69,487

 

 

 

69,387

 

Treasury stock common 676,258 and 660,063 shares as of March 31, 2024 and September 30, 2023, respectively

 

(8,610

)

 

 

(8,206

)

Treasury stock Series E preferred 80,000 shares as of March 31, 2024 and September 30, 2023, respectively

 

(7

)

 

 

(7

)

Retained earnings

 

34,996

 

 

 

38,959

 

Total stockholders' equity

 

95,868

 

 

 

100,135

 

Total liabilities and stockholders' equity

$

433,868

 

 

$

421,815

 

 

 

 

 

 

 

 

 

LIVE VENTURES, INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands, except per share)

 

For the Three Months Ended March 31,

 

For the Six Months Ended March 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenues

$

118,626

 

 

$

91,122

 

 

$

236,219

 

 

$

160,108

 

Cost of revenues

 

83,159

 

 

 

59,514

 

 

 

164,425

 

 

 

106,556

 

Gross profit

 

35,467

 

 

 

31,608

 

 

 

71,794

 

 

 

53,552

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

General and administrative expenses

 

29,824

 

 

 

22,617

 

 

 

57,503

 

 

 

37,217

 

Sales and marketing expenses

 

6,481

 

 

 

4,039

 

 

 

11,588

 

 

 

6,816

 

Total operating expenses

 

36,305

 

 

 

26,656

 

 

 

69,091

 

 

 

44,033

 

Operating income (loss)

 

(838

)

 

 

4,952

 

 

 

2,703

 

 

 

9,519

 

Other expense:

 

 

 

 

 

 

 

Interest expense, net

 

(4,167

)

 

 

(3,235

)

 

 

(8,330

)

 

 

(5,282

)

Other Income (expense)

 

507

 

 

 

391

 

 

 

223

 

 

 

330

 

Total other expense, net

 

(3,660

)

 

 

(2,844

)

 

 

(8,107

)

 

 

(4,952

)

(Loss) income before provision for income taxes

 

(4,498

)

 

 

2,108

 

 

 

(5,404

)

 

 

4,567

 

(Benefit) provision for income taxes

 

(1,217

)

 

 

550

 

 

 

(1,441

)

 

 

1,165

 

Net (loss) income

$

(3,281

)

 

$

1,558

 

 

$

(3,963

)

 

$

3,402

 

 

 

 

 

 

 

 

 

(Loss) income per share:

 

 

 

 

 

 

 

Basic

$

(1.04

)

 

$

0.50

 

 

$

(1.25

)

 

$

1.10

 

Diluted

$

(1.04

)

 

$

0.49

 

 

$

(1.25

)

 

$

1.08

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

3,154,771

 

 

 

3,143,911

 

 

 

3,159,180

 

 

 

3,101,007

 

Diluted

 

3,154,771

 

 

 

3,184,982

 

 

 

3,159,180

 

 

 

3,137,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIVE VENTURES INCORPORATED
NON-GAAP MEASURES RECONCILIATION

Adjusted EBITDA

The following table provides a reconciliation of Net income (loss) to total Adjusted EBITDA¹ for the periods indicated (dollars in thousands):

 

For the Three Months Ended

 

For the Six Months Ended

 

March 31, 2024

 

March 31, 2023

 

March 31, 2024

 

March 31, 2023

Net (loss) income

$

(3,281

)

 

$

1,558

 

 

$

(3,963

)

 

$

3,402

 

Depreciation and amortization

 

4,188

 

 

 

3,647

 

 

 

8,483

 

 

 

6,297

 

Stock-based compensation

 

50

 

 

 

109

 

 

 

100

 

 

 

109

 

Interest expense, net

 

4,167

 

 

 

3,235

 

 

 

8,330

 

 

 

5,282

 

Income tax (benefit) expense

 

(1,217

)

 

 

550

 

 

 

(1,441

)

 

 

1,165

 

SW Financial settlement gain

 

 

 

 

(1,000

)

 

 

 

 

 

(1,000

)

Acquisition costs

 

468

 

 

 

1,088

 

 

 

874

 

 

 

1,472

 

Debt acquisition costs

 

 

 

 

 

 

 

183

 

 

 

 

Other non-recurring charges

 

82

 

 

 

 

 

 

587

 

 

 

 

Adjusted EBITDA

$

4,457

 

 

$

9,187

 

 

$

13,153

 

 

$

16,727