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
“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
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