Live Ventures Incorporated Announces 60 Percent Increase in Revenues, 1,083 Percent Increase in Earnings per Share and $120M ...
February 09 2017 - 7:30AM
Live Ventures Incorporated (Nasdaq:LIVE) (“Live Ventures” or the
“Company”), a diversified holding company, today announces
financial results for its first fiscal quarter 2017, which ended
December 31, 2016.
The Company reported record quarterly revenue of $32.1 million,
representing an increase of 60.1 percent over the same period last
year, and quarterly earnings per basic share of $0.71, an increase
of 1,083 percent over last year. When adding back one-time charges
related to acquisition costs of Vintage Stock Inc., earnings per
basic share of $0.88 increased 1,366 percent over the same period
last year.
Key highlights of the first fiscal quarter 2017 compared to 2016
include:
- Revenue increase of 60.1 percent
- Gross profit increased by 97.3 percent
- Operating earnings were higher by 251.3 percent
- Net Income was up 711 percent
- Basic earnings per share increased by $0.65 or 1083.3
percent
- Diluted earnings per share increased by $0.32 or 640 percent
As of December 31, 2016, Live Ventures reported approximately
$1.5 million in cash-on-hand, with an additional $12.5 million in
available credit on the Company’s revolving lines of credit.
Total Assets for the first time exceeded $120 million. Net
cash flow provided by operating activities was approximately $5.0
million for the first quarter. Working capital at December
31, 2016 was approximately $24.3 million. Stockholder’s
equity increased approximately $4.8 million or 20 percent to $29
million over the prior quarter.
“We are thrilled with the strong results of our first quarter
2017. Revenues, profits and returns surged to record
levels as a result of our core businesses and our recent
acquisition of Vintage Stock, Inc.,” said Virland Johnson, CFO of
Live Ventures Incorporated. “We remain focused on our current
corporate strategy, as we have seen its demonstrated success.
We are particularly enthusiastic regarding the exceptional returns
we have achieved for our stockholders.”
The Company will be holding its first quarter conference call at
4:30pm Eastern Standard Time on February 9, 2017. Management will
take live questions following the prepared remarks. Interested
investors may participate in the conference call by dialing (888)
632-3382 (US domestic) or (785) 424-1677 (international) and
providing the operator with the conference ID: LIVE VENTURES.
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. Its subsidiary, Marquis
Industries, a specialty, high-performance yarns manufacturer,
hard-surfaces re-seller, 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 company,
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. The Company also
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.
LIVE VENTURES INCORPORATED AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
December 31,
2016 |
|
September 30,
2016 |
|
(Unaudited) |
|
|
Assets |
|
|
|
Cash and
cash equivalents |
$ |
1,586,753 |
|
|
$ |
770,895 |
|
Trade
and other receivables, net |
|
8,351,502 |
|
|
|
8,334,801 |
|
Inventories, net |
|
32,448,126 |
|
|
|
11,053,085 |
|
Prepaid
expenses and other current assets |
|
3,930,027 |
|
|
|
5,059,981 |
|
Total
current assets |
|
46,316,408 |
|
|
|
25,218,762 |
|
|
|
|
|
Property and equipment,
net |
|
20,094,350 |
|
|
|
14,014,501 |
|
Deposits and other
assets |
|
75,330 |
|
|
|
19,765 |
|
Deferred taxes |
|
11,756,447 |
|
|
|
12,524,582 |
|
Intangible assets,
net |
|
3,029,371 |
|
|
|
1,689,790 |
|
Goodwill |
|
39,066,061 |
|
|
|
– |
|
Total
assets |
$ |
120,337,967 |
|
|
$ |
53,467,400 |
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Liabilities: |
|
|
|
Accounts
payable |
$ |
9,024,776 |
|
|
$ |
5,402,654 |
|
Accrued
liabilities |
|
6,789,818 |
|
|
|
6,396,772 |
|
Income
taxes payable |
|
– |
|
|
|
– |
|
Current
portion of long term debt |
|
6,226,454 |
|
|
|
1,789,290 |
|
Total
current liabilities |
|
22,041,048 |
|
|
|
13,588,716 |
|
|
|
|
|
Notes payable, net of
current portion |
|
67,287,070 |
|
|
|
13,682,872 |
|
Note payable, related
party |
|
2,000,000 |
|
|
|
2,000,000 |
|
Total
Liabilities |
|
91,328,118 |
|
|
|
29,271,588 |
|
|
|
|
|
Commitment and
contingencies |
|
– |
|
|
|
– |
|
|
|
|
|
Stockholders'
equity: |
|
|
|
Series B
convertible preferred stock, $0.001 par value, 1,000,000 shares
authorized, 214,244 shares issued and outstanding at December 31,
2016 and 0 shares issued and outstanding at September 30, 2016 |
|
214 |
|
|
|
– |
|
Series E
convertible preferred stock, $0.001 par value, 200,000 shares
authorized, 127,840 shares issued and outstanding at December 31,
2016 and September 30, 2016, liquidation preference $38,352 |
|
10,866 |
|
|
|
10,866 |
|
Common
stock, $0.001 par value, 10,000,000 shares authorized, 2,085,998
shares issued and 2,055,876 shares outstanding at December 31,
2016; 2,819,327 shares issued and 2,789,205 shares outstanding at
September 30, 2016 |
|
2,086 |
|
|
|
2,819 |
|
Paid in
capital |
|
56,705,679 |
|
|
|
53,319,217 |
|
Treasury
stock (30,122 shares) |
|
(300,027 |
) |
|
|
(300,027 |
) |
Accumulated deficit |
|
(27,408,969 |
) |
|
|
(28,837,063 |
) |
Total
equity |
|
29,009,849 |
|
|
|
24,195,812 |
|
Total
liabilities and equity |
$ |
120,337,967 |
|
|
$ |
53,467,400 |
|
|
|
|
|
The accompanying notes are an integral part of these
unaudited condensed consolidated financial statements. |
LIVE VENTURES INCORPORATED AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(UNAUDITED) |
|
|
Three Months Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
Revenues |
$ |
32,188,664 |
|
|
$ |
20,104,434 |
|
Cost of revenues |
|
19,543,432 |
|
|
|
13,694,559 |
|
Gross profit |
|
12,645,232 |
|
|
|
6,409,875 |
|
|
|
|
|
Operating
expenses: |
|
|
|
General
and administrative expenses |
|
7,058,674 |
|
|
|
2,365,873 |
|
Sales and
marketing expenses |
|
1,907,490 |
|
|
|
2,996,750 |
|
Total operating
expenses |
|
8,966,164 |
|
|
|
5,362,623 |
|
|
|
|
|
Operating income |
|
3,679,068 |
|
|
|
1,047,252 |
|
Other income
(expense): |
|
|
|
Interest
expense, net |
|
(1,449,476 |
) |
|
|
(345,483 |
) |
Other
income |
|
41,890 |
|
|
|
12,553 |
|
Total
other income (expense), net |
|
(1,407,586 |
) |
|
|
(332,930 |
) |
Income before provision
for income taxes |
|
2,271,482 |
|
|
|
714,322 |
|
Provision for income
taxes |
|
|
|
Current
tax expense: |
|
|
|
Federal |
|
30,431 |
|
|
|
353,691 |
|
State |
|
44,343 |
|
|
|
60,289 |
|
Total
Current tax expense |
|
74,774 |
|
|
|
413,980 |
|
Deferred
tax expense: |
|
|
|
Federal |
|
707,492 |
|
|
|
– |
|
State |
|
60,643 |
|
|
|
– |
|
Total
Deferred tax expense |
|
768,135 |
|
|
|
– |
|
Total
provision (benefit) for income taxes |
|
842,909 |
|
|
|
413,980 |
|
Net income |
|
1,428,573 |
|
|
|
300,342 |
|
Net income attributed
to noncontrolling interest |
|
– |
|
|
|
124,194 |
|
Net income attributed
to Live Ventures, Incorporated |
$ |
1,428,573 |
|
|
$ |
176,148 |
|
|
|
|
|
Earnings per
share: |
|
|
|
Basic |
$ |
0.71 |
|
|
$ |
0.06 |
|
Diluted |
$ |
0.37 |
|
|
$ |
0.05 |
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
Basic |
|
1,999,983 |
|
|
|
2,817,516 |
|
Diluted |
|
3,833,523 |
|
|
|
3,309,782 |
|
|
|
|
|
The accompanying notes are an integral part of these
unaudited condensed consolidated financial statements. |
LIVE VENTURES INCORPORATED AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(UNAUDITED) |
|
|
|
|
|
Three Months Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
OPERATING
ACTIVITIES: |
|
|
|
Net income |
$ |
1,428,573 |
|
|
$ |
300,342 |
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities: |
|
|
|
Depreciation and amortization |
|
935,047 |
|
|
|
545,832 |
|
Amortization of debt issuance cost |
|
40,136 |
|
|
|
4,954 |
|
Stock
based compensation expense |
|
1,443 |
|
|
|
91,227 |
|
Non-cash
issuance of common stock for services |
|
– |
|
|
|
7,500 |
|
Provision
for uncollectible accounts |
|
66 |
|
|
|
3,353 |
|
Reserve
for obsolete inventory |
|
83,613 |
|
|
|
32,097 |
|
Change in
deferred taxes |
|
768,135 |
|
|
|
– |
|
Changes
in assets and liabilities: |
|
|
|
Accounts
receivable |
|
96,733 |
|
|
|
1,327,208 |
|
Prepaid
expenses and other current assets |
|
1,990,407 |
|
|
|
356,751 |
|
Inventories |
|
(1,318,562 |
) |
|
|
182,270 |
|
Deposits
and other assets |
|
(55,565 |
) |
|
|
55 |
|
Accounts
payable |
|
(221,388 |
) |
|
|
632,708 |
|
Accrued
liabilities |
|
1,246,047 |
|
|
|
(697,589 |
) |
Income
tax payable |
|
– |
|
|
|
(52,020 |
) |
|
|
|
|
Net cash
provided by operating activities |
|
4,994,685 |
|
|
|
2,734,688 |
|
|
|
|
|
INVESTING ACTIVITIES: |
|
|
|
Acquisition of business, net of cash acquired |
|
(57,310,900 |
) |
|
|
– |
|
Purchases
of property and equipment |
|
(4,869,153 |
) |
|
|
(94,439 |
) |
|
|
|
|
Net cash
used in investing activities |
|
(62,180,053 |
) |
|
|
(94,439 |
) |
|
|
|
|
FINANCING ACTIVITIES: |
|
|
|
Net
borrowings under revolver loans |
|
14,056,099 |
|
|
|
540,354 |
|
Payments
of debt issuance costs |
|
(1,155,000 |
) |
|
|
– |
|
Payment
for the purchase of the noncontrolling interest |
|
– |
|
|
|
(1,500,000 |
) |
Proceeds
from issuance of notes payable |
|
45,889,321 |
|
|
|
– |
|
Payments
on notes payable |
|
(789,194 |
) |
|
|
(238,836 |
) |
Payments
on notes payable, related party |
|
– |
|
|
|
(845,566 |
) |
Net cash
provided by (used in) financing activities |
|
58,001,226 |
|
|
|
(2,044,048 |
) |
|
|
|
|
|
|
|
|
INCREASE IN CASH AND
CASH EQUIVALENTS |
|
815,858 |
|
|
|
596,201 |
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, beginning of period |
|
770,895 |
|
|
|
2,727,818 |
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, end of period |
$ |
1,586,753 |
|
|
$ |
3,324,019 |
|
|
|
|
|
Supplemental cash flow
disclosures: |
|
|
|
Interest
paid |
$ |
790,580 |
|
|
$ |
345,483 |
|
Income
taxes paid |
$ |
– |
|
|
$ |
466,000 |
|
|
|
|
|
Noncash
financing and investing activities: |
|
|
|
Conversion of accrued expense liabilities into common stock |
$ |
3,384,500 |
|
|
$ |
– |
|
Accrued
and unpaid dividends |
$ |
479 |
|
|
$ |
480 |
|
Note
payable issued for purchase of noncontrolling interest |
$ |
– |
|
|
$ |
500,000 |
|
|
|
|
|
The accompanying notes are an integral part of these
unaudited condensed consolidated financial statements. |
Forward-Looking and Cautionary
Statements This 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. LiveDeal, Inc. 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 shareholders, 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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