Live Ventures Incorporated (Nasdaq:LIVE) (“Live Ventures” or the
“Company”), a diversified holding company, announces today
financial results from its fiscal year-end 2016.
Reporting its most successful year in the Company’s history,
Live Ventures reported a record $79M in revenues, an increase of
136 percent over the previous year, and net profit of approximately
$17.82M, representing earnings per share (EPS) of $8.92.
Stockholders’ equity, which is management’s preferred
measurement for performance, increased by 192 percent over 2015.
Since present management took over five years ago,
stockholders equity has grown at a rate of 100.58 percent
compounded annually.
“Live Ventures has truly come a long way since its founding in
1968, when we were known as Nuclear Corporation of New Mexico,”
said Jon Isaac, CEO of Live Ventures Incorporated. “We are elated
with these most recent results and are grateful for the hard work
of our employees, who were essential to the Company’s recent
success.” The company’s outstanding year-end results were partially
attributable to the stellar performance at its wholly owned
subsidiary, Marquis Industries, and partially to other non-cash
income realized in connection with the Company’s deferred tax
assets. These net operating losses (NOLs) were accumulated prior to
Live Ventures becoming a diversified holding company and allow it
to defer over $30M in future income. The NOLs provide the company a
unique advantage in that it can keep a substantial portion of its
income -- which normally would have been expensed at approximately
35 percent for taxes, and redeploy it in other areas such as stock
repurchases, retirement of debt, or new acquisitions.
Although a portion of this year’s earnings was attributable to its
deferred tax assets, management believes the growth factors
explained below will offset non-cash income realized during this
year.
Outlook for 2017 The Company expects multiple
factors to impact growth 2017. Management anticipates
revenues to increase by well over 50 percent, easily surpassing
$120M, and stockholders’ equity to grow at a high double-digit
rate. In addition, since the acquisition of Vintage Stock
closed several weeks after our fiscal year end, none of the results
from Vintage Stock is included in this financial report, all of
which will figure prominently into the Company’s upcoming 10Q
filing and future financial results.
Management further expects additional growth in 2017 as a result
of recent capital expenditures made at Marquis Industries to expand
its highly successful turf product, which has generated enough
demand to be backordered by several months. Finally, in furtherance
of the Company’s previously announced strategic focus to make
accretive acquisitions, such as Marquis Industries and Vintage
Stock, management is evaluating several additional acquisition
targets, which, if successful, would significantly further increase
revenues, and potentially EPS, while not requiring the issuance of
stock or convertible securities. “We are extremely optimistic for
the growth we expect in 2017. This has been a record year for
the Company, in terms of the pace at which we acquired assets, our
financial success, and our ability to act quickly when we find an
acquisition that fits our profile,” said Jon Isaac, CEO of Live
Ventures. “We look forward to the opportunity to report
continued successes.” Live Ventures’ financial results were filed
today with Securities and Exchange Commission (SEC) and can be
accessed via the Company’s website in the investor relations
section, or by visiting the SEC’s website.
About Live Ventures Incorporated Live Ventures
Incorporated is a diversified holding company with several wholly
owned subsidiaries and a strategic focus on acquiring profitable
companies that have demonstrated a strong history of earnings
power. Live Ventures Incorporated provides, among other
businesses, marketing solutions that boost customer awareness and
merchant visibility on the Internet. The Company operates a
deal engine, which is a service that connects merchants and
consumers via an innovative platform that uses geo-location,
enabling businesses to communicate real-time and instant offers to
nearby consumers. In addition, it maintains, through its
subsidiary, ModernEveryday, an online consumer products retailer
and, through its subsidiary, Marquis Industries, a specialty,
high-performance yarns manufacturer, hard-surfaces re-seller, which
is a top-10 high-end residential carpet manufacturer in the United
States. Marquis Industries, through its A-O Division,
utilizes its state-of-the-art yarn extrusion capacity to market
monofilament textured yarn products to the artificial turf
industry. Marquis is the only manufacturer in the world that
can produce certain types of yarn prized by the industry.
Most recently, the company acquired Vintage Stock, Inc., an
award-winning entertainment featuring movies, classic and new video
games, music, collectible comics and toys, and the ability to
special order and ship product worldwide to the customer’s
doorstep. Vintage Stock is America’s largest entertainment
superstore chain.
In December, Isaac Capital Group, our largest stockholder,
agreed to lock up all of their shares for five years (through
December 31, 2021). To ensure that lock-up arrangement, they
exchanged all of their shares for a series of “common equivalent”
preferred stock, which is not redeemable; has no liquidation
preference and virtually identical dividends (if any are declared);
has no board seats and votes with the common stock; and is
convertible back into common stock without any dilution (based on
its original exchange from common stock). Accordingly, our
common stock was reduced from approximately 2.8 million to 2.0
million shares.
Forward-Looking and Cautionary StatementsThis
press release may contain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of
1995. In accordance with the safe harbor provisions of
this Act, statements contained herein that look forward in time
that include everything other than historical information, involve
risks and uncertainties that may affect the Company’s actual
results. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar
statements. Live Ventures Incorporated may also make written
or oral forward-looking statements in its periodic reports to the
U.S. Securities and Exchange Commission on Forms 10-K, 10-Q and
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 Form 10-K for the fiscal year ended
September 30, 2016, most recent Form 10-Q, and other filings with
the U S. Securities and Exchange Commission (available
at http://www.sec.gov). The Company undertakes no obligation
to publicly update or revise any statements in this release,
whether as a result of new information, future events, or
otherwise.
Contact:
Live Ventures Incorporated
Tim Matula, investor relations
425-836-9035
tmatula@live-ventures.com
http://live-ventures.com
Source: Live Ventures Incorporated
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