Live Ventures Incorporated (Nasdaq: LIVE), (“Live Ventures” or the
“Company”), a diversified holding company, today announced
financial results for its fiscal second quarter ended March 31,
2022.
Second Quarter FY 2022 Key Highlights:
- Revenue of $69.7 million decreased 1.7% as compared with the
prior year period
- Net income of $15.4 million and diluted earnings per share
(“EPS”) of $4.84 increased 75.8% and 82.0%, respectively, as
compared with the prior year period
- Adjusted EBITDA¹ of $10.3 million decreased 23.0% as compared
with the prior year period
- ApplianceSmart exited bankruptcy resulting in an $11.4 million
gain on bankruptcy settlement
- Repurchased 65,668 shares of common stock at an average price
of $31.72 per share
- Capital structure simplified as a result of stockholder
conversion of the Company’s Series B preferred stock into shares of
common stock
- Total assets of $225.3 million increased 6.4% as compared with
September 30, 2021
- Approximately $38.0 million of cash and availability under our
credit facilities
“We are pleased with our second quarter financial results given
the inflationary pressures during the quarter,” Jon Isaac,
President and CEO of Live Ventures, commented. “Additionally, in
the same period last year, our retail segment’s strong revenues
were driven by the U.S. Government’s stimulus payments, which we
did not have this year.”
Mr. Isaac continued, “We remain confident in our businesses’
long-term outlook and will continue executing our strategic plan to
maximize stockholder value. Along those lines, we took the
opportunity to repurchase 65,668 shares during the quarter, or
approximately 2% of our diluted common shares.”
During the second quarter, the Company’s capital structure was
simplified by the conversion of its Series B convertible preferred
stock into shares of the Company’s common stock. The conversion had
no impact on the fully diluted share count and there is no longer
any Series B preferred stock outstanding.
[1] Adjusted EBTIDA is a non-GAAP measure. A
reconciliation of the non-GAAP measure is included below.
Second Quarter FY 2022 Financial Summary (in thousands
except per share amounts)
| |
During the three months ended March 31, |
|
|
2022 |
|
2021 |
|
% Change |
|
Revenue |
$ |
69,706 |
|
$ |
70,890 |
|
-1.7 |
% |
| Operating Income |
$ |
8,449 |
|
$ |
11,125 |
|
-24.1 |
% |
| Net income |
$ |
15,358 |
|
$ |
8,734 |
|
75.8 |
% |
| Diluted earnings per
share |
$ |
4.84 |
|
$ |
2.66 |
|
82.0 |
% |
Second quarter 2022 revenue of $69.7 million decreased 1.7%,
primarily due to decreased revenue of $3.3 million in the retail
segment as a result of the impact of additional U.S. Government
stimulus payments during the prior year’s second quarter that
allowed for more discretionary consumer spending in that period at
Vintage Stock locations.
Operating income of $8.4 million for the second quarter of 2022
decreased 24.1%, as compared with the prior year period, primarily
due to increases in raw material costs as a result of inflationary
pressures, increased employee compensation, and other operating
expenses that were higher in the current quarter as compared with
the second quarter of 2021 which were lower due to the
pandemic.
Net income of $15.4 million and diluted EPS of $4.84 for the
three months ended March 31, 2022 increased 75.8% and 82.0%,
respectively, as compared with the prior year period. Net income
includes approximately $11.4 million or $3.58 per diluted share for
a gain on bankruptcy settlement in the current period and
approximately $2.5 million or $0.76 per diluted share for a gain on
bankruptcy settlement and a gain on payroll protection program loan
forgiveness in the prior period.
Adjusted EBITDA of $10.3 million decreased by approximately $3.1
million, or 23.0%, for the second quarter 2022, as compared to the
prior year period. The decrease is primarily due to decreases in
revenue and increases in SG&A expenses.
As of March 31, 2022, the Company had total cash availability of
$38.0 million, consisting of cash on hand of $6.2 million and cash
availability under its various lines of credit of $31.8 million,
and total assets of $225.3 million. Stockholders’ equity was $94.9
million as of March 31, 2022.
Second Quarter FY 2022 Segment Results (in
thousands)
| |
During the three months ended March 31, |
|
|
2022 |
|
2021 |
|
% Change |
| Revenue |
|
|
|
|
|
|
Retail |
$ |
20,741 |
|
|
$ |
24,003 |
|
|
-13.6 |
% |
| Flooring Manufacturing |
|
32,772 |
|
|
|
32,972 |
|
|
-0.6 |
% |
| Steel Manufacturing |
|
14,027 |
|
|
|
13,793 |
|
|
1.7 |
% |
| Corporate & other |
|
2,166 |
|
|
|
122 |
|
|
1675.4 |
% |
|
|
$ |
69,706 |
|
|
$ |
70,890 |
|
|
-1.7 |
% |
|
|
|
|
|
|
|
| |
During the three months ended March 31, |
|
|
2022 |
|
2021 |
|
% Change |
|
|
|
|
|
|
|
| Operating Income
(loss) |
|
|
|
|
|
| Retail |
$ |
3,132 |
|
|
$ |
5,071 |
|
|
-38.2 |
% |
| Flooring Manufacturing |
|
3,875 |
|
|
|
6,011 |
|
|
-35.5 |
% |
| Steel Manufacturing |
|
2,719 |
|
|
|
1,742 |
|
|
56.1 |
% |
| Corporate & other |
|
(1,277 |
) |
|
|
(1,699 |
) |
|
24.8 |
% |
|
|
$ |
8,449 |
|
|
$ |
11,125 |
|
|
-24.1 |
% |
| |
During the three months ended March 31, |
|
|
2022 |
|
2021 |
|
% Change |
| Adjusted
EBITDA |
|
|
|
|
|
|
Retail |
$ |
3,610 |
|
|
$ |
5,456 |
|
|
-33.8 |
% |
|
Flooring Manufacturing |
|
4,579 |
|
|
|
6,726 |
|
|
-31.9 |
% |
|
Steel Manufacturing |
|
2,828 |
|
|
|
2,034 |
|
|
39.0 |
% |
|
Corporate & other |
|
(762 |
) |
|
|
(894 |
) |
|
14.8 |
% |
|
Total Adjusted EBITDA |
$ |
10,255 |
|
|
$ |
13,322 |
|
|
-23.0 |
% |
|
|
|
|
|
|
|
| Adjusted
EBITDA as a percentage of revenue |
|
|
|
|
|
Retail |
|
17.4 |
% |
|
|
22.7 |
% |
|
|
|
Flooring Manufacturing |
|
14.0 |
% |
|
|
20.4 |
% |
|
|
|
Steel Manufacturing |
|
20.2 |
% |
|
|
14.7 |
% |
|
|
|
Corporate & other |
|
-35.2 |
% |
|
|
-732.8 |
% |
|
|
|
Consolidated adjusted EBITDA |
|
|
|
|
|
|
as a percentage of revenue |
|
14.7 |
% |
|
|
18.8 |
% |
|
|
| |
|
|
|
|
|
Retail
Second quarter 2022 Retail Segment revenue of $20.7 million
decreased approximately $3.3 million or 13.6%, as compared with the
prior year period. The decrease in revenue is due to the impact of
additional U.S. Government stimulus payments during the prior
year’s second quarter that allowed for more discretionary consumer
spending in that period at Vintage Stock locations. Cost of revenue
decreased in the current quarter in line with the decrease in
revenues. General and administrative expense increased primarily
due to increases in employee compensation and related costs as a
result of Vintage Stock opening new locations. Operating income for
the three months ended March 31, 2022 was approximately $3.1
million for the Retail Segment, as compared to operating income of
approximately $5.1 million for the prior year period.
Flooring Manufacturing
Second quarter 2022 Flooring Manufacturing Segment revenue of
$32.8 million decreased approximately $0.2 million, or 0.6%, as
compared with the prior year period, primarily due to reduced
customer demand. Cost of revenue for the second quarter of 2022
increased primarily due to increases in raw material costs as a
result of inflationary pressures. Sales and marketing expense
increased for the three months ended March 31, 2022, primarily due
to increased compensation associated with the sales force.
Operating income for the three months ended March 31, 2022 was
approximately $3.9 million for the Flooring Manufacturing Segment,
as compared to operating income of approximately $6.0 million for
the prior year period.
Steel Manufacturing
Second quarter 2022 Steel Manufacturing Segment revenue of $14.0
million increased by approximately $0.2 million, or 1.7%, as
compared with the prior year period, primarily due to increasing
sales prices resulting from rising costs. Cost of revenue for
the second quarter of 2022 decreased as a percentage of sales due
to improved manufacturing efficiencies and increased revenue due to
price increases over the prior year period. Operating income for
the three months ended March 31, 2022 was approximately $2.7
million for the Steel Manufacturing Segment, as compared to
operating income of approximately $1.7 million in the prior year
period. The increase in operating income is primarily due to an
increase in gross profit.
Corporate and Other
Second quarter 2022 Corporate and Other revenue increased by
approximately $2.0 million, primarily due to the addition of SW
Financial as a consolidated variable interest entity (“VIE”) during
fiscal 2021. Cost of revenue for the three months ended March 31,
2022 increased proportionately with revenue. Operating loss for the
three months ended March 31, 2022 was approximately $1.3 million,
as compared to a loss of approximately $1.7 million in the prior
period.
Six Months FY 2022 Financial Summary (in thousands
except per share amounts)
| |
During the six months ended March 31, |
|
|
2022 |
|
2021 |
|
% Change |
|
Revenue |
$ |
144,864 |
|
$ |
133,344 |
|
8.6 |
% |
| Operating Income |
$ |
18,856 |
|
$ |
18,416 |
|
2.4 |
% |
| Net income |
$ |
21,904 |
|
$ |
14,147 |
|
54.8 |
% |
| Diluted earnings per
share |
$ |
6.87 |
|
$ |
4.34 |
|
58.3 |
% |
Revenue increased approximately $11.5 million, or 8.6%, to
$144.9 million for the six months ended March 31, 2022, as compared
to the prior year period. Operating income increased by
approximately $0.4 million essentially flat as compared with the
prior year period.
For the six months ended March 31, 2022, net income of $21.9
million and EPS of $6.87 per diluted share, increased 54.8% and
58.3%, respectively, over the same period last year. Net income
includes approximately $11.4 million or $3.56 per diluted share for
a gain on bankruptcy settlement in the current period and
approximately $2.5 million or $0.77 per diluted share for a gain on
bankruptcy settlement and a gain on payroll protection program loan
forgiveness in the prior period.
For the six months ended March 31, 2022, adjusted EBITDA was
approximately $22.4 million, a decrease of $0.9 million, or 3.9%,
as compared with the prior year period. The decrease is primarily
due to increases in cost of revenue and SG&A expenses.
Six Months FY 2022 Segment Results (in
thousands)
| |
During the six months ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
| Revenue |
|
|
|
|
|
|
Retail |
$ |
46,952 |
|
|
$ |
46,373 |
|
|
1.2 |
% |
| Flooring Manufacturing |
|
65,644 |
|
|
|
63,194 |
|
|
3.9 |
% |
| Steel Manufacturing |
|
26,393 |
|
|
|
23,528 |
|
|
12.2 |
% |
| Corporate & other |
|
5,875 |
|
|
|
249 |
|
|
2,259.4 |
% |
|
|
$ |
144,864 |
|
|
$ |
133,344 |
|
|
8.6 |
% |
|
|
|
|
|
|
|
| |
During the six months ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
| Operating Income
(loss) |
|
|
|
|
|
| Retail |
$ |
7,942 |
|
|
$ |
9,564 |
|
|
-17.0 |
% |
| Flooring Manufacturing |
|
8,483 |
|
|
|
10,161 |
|
|
-16.5 |
% |
| Steel Manufacturing |
|
4,373 |
|
|
|
1,886 |
|
|
131.9 |
% |
| Corporate & other |
|
(1,942 |
) |
|
|
(3,195 |
) |
|
39.2 |
% |
|
|
$ |
18,856 |
|
|
$ |
18,416 |
|
|
2.4 |
% |
| |
During the six months ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
| Adjusted
EBITDA |
|
|
|
|
|
|
Retail |
$ |
8,813 |
|
|
$ |
10,594 |
|
|
-16.8 |
% |
|
Flooring Manufacturing |
|
9,834 |
|
|
|
11,824 |
|
|
-16.8 |
% |
|
Steel Manufacturing |
|
4,672 |
|
|
|
2,531 |
|
|
84.6 |
% |
|
Corporate & other |
|
(964 |
) |
|
|
(1,697 |
) |
|
43.2 |
% |
|
Total Adjusted EBITDA |
$ |
22,355 |
|
|
$ |
23,252 |
|
|
-3.9 |
% |
|
|
|
|
|
|
|
| Adjusted
EBITDA as a percentage of revenue |
|
|
|
|
|
Retail |
|
18.8 |
% |
|
|
22.8 |
% |
|
|
|
Flooring Manufacturing |
|
15.0 |
% |
|
|
18.7 |
% |
|
|
|
Steel Manufacturing |
|
17.7 |
% |
|
|
10.8 |
% |
|
|
|
Corporate & other |
|
-16.4 |
% |
|
|
-681.5 |
% |
|
|
|
Consolidated adjusted EBITDA |
|
|
|
|
|
|
as a percentage of revenue |
|
15.4 |
% |
|
|
17.4 |
% |
|
|
Retail
Revenue for the six months ended March 31, 2022, increased
approximately $0.6 million, or 1.2%, as compared to the prior year,
primarily due to increased retail pricing and additional locations
added at Vintage Stock. Retail sales at the Vintage Stock locations
during the current period were impacted by the lack of stimulus
payments received during the six months ended March 31, 2021. Cost
of revenue increased due to changes in product mix, as well as
other inflationary pressures. Operating income for the six months
ended March 31, 2022 was approximately $7.9 million for the Retail
Segment, as compared to operating income of approximately $9.6
million for the prior year period.
Flooring Manufacturing
Revenue for the six months ended March 31, 2022, increased
approximately $2.5 million, or 3.9%, as compared to the prior year
period, primarily due to greater demand for various grades of
flooring, as well as increases in sales prices. Sales price
increases were primarily due to higher product costs relating to
inflationary pressures that were passed on to customers. Cost of
revenue increased primarily due to increases in raw material costs
as compared with the prior year period. Sales and marketing
expenses increased approximately $1.3 million for the six months
ended March 31, 2022, primarily due to increased compensation
associated with the segment’s sales force. Operating income for the
six months ended March 31, 2022, was approximately $8.5 million for
the Flooring Manufacturing Segment, as compared to operating income
of approximately $10.2 million for the prior year period.
Steel Manufacturing
Revenue for the six months ended March 31, 2022, increased $2.9
million, or 12.2%, as compared to the prior year period, primarily
due to increased sales prices resulting from rising costs. Cost of
revenue for the six months ended March 31, 2022 increased
moderately, as compared to the prior year period, as a percentage
of sales due to improved manufacturing efficiencies and increased
revenue due to price increases. Operating income for the six months
ended March 31, 2022 was approximately $4.4 million for the Steel
Manufacturing Segment, as compared to operating income of
approximately $1.9 million in the prior period. The increase in
operating income is primarily due to an increase in gross
profit.
Corporate and Other
Revenues for the six months ended March 31, 2022 increased by
$5.6 million, primarily due to the addition of SW Financial as a
consolidated VIE during fiscal 2021. Cost of revenue for the six
months ended March 31, 2022 increased proportionately with revenue.
Operating loss for the six months ended March 31, 2022 was
approximately $1.9 million, as compared to a loss of approximately
$3.2 million in the prior period.
Non-GAAP Financial Information
Adjusted EBITDA
We evaluate the performance of our operations based on financial
measures such as revenue and “Adjusted EBITDA.” Adjusted EBITDA is
defined 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 flows available to fund all
of 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. Adjusted EBITDA is a
non-GAAP financial measure. 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.
About Live VenturesLive Ventures is a growing,
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, CEO and
strategic investor took over the company and in 2015, refocused it
into a diversified holding company. The Company’s current portfolio
of diversified operating subsidiaries includes companies in the
textile, flooring, tools, steel, entertainment, and financial
services industries.
About Our Main Operating Subsidiaries
Marquis Industries
Based in Chatsworth, GA, and acquired by Live Ventures in 2015,
Marquis Industries, Inc. (“Marquis”) is a leading manufacturer of
residential and commercial carpets sold primarily in North America
and focused on residential, niche commercial, and hospitality
end-markets. In addition to a diverse offering of carpeting
products, Marquis Industries also designs, sources, and sells
hard-surface flooring products.
Vintage Stock
Based in Joplin, MO, and acquired by Live Ventures in 2016,
Vintage Stock Inc. (“Vintage Stock”) is an award-winning specialty
entertainment retailer that sells new and pre-owned movies, classic
and current generation video games and systems, music on CD &
LP, collectible comics, books, toys, and more through a unique
buy-sell-trade model. Vintage Stock sells through its 65 retail
stores and its website, allowing the company to ship products
worldwide directly to the customer’s doorstep.
Precision Marshall
Based in Washington, PA, and acquired by Live Ventures in 2020,
Precision Industries, Inc. (“Precision Marshall”) is a leading
manufacturer of premium steel tools and specialty alloys. Precision
Marshall manufactures pre-finished decarb-free tool and die steel.
For over 70 years, Precision Marshall has been known by steel
distributors for its quick and accurate service and has led the
industry with exemplary availability and value-added
processing.
Salomon Whitney
Based in Melville, NY, Salomon Whitney LLC (“Salomon Whitney”),
and acquired in June 2021, is a licensed broker-dealer and
investment bank offering clients a broad range of products and
services, including broker retailing of corporate equity and debt
securities, private placement of securities, corporate finance
consulting regarding mergers and acquisitions, broker selling of
variable life insurance or annuities, and broker retailing of U.S.
government and municipal securities. Salomon Whitney has over 70
registered representatives and is licensed to operate in all 50
states. As of December 31, 2021, Live Ventures owns a 24.9%
interest in Salomon Whitney. However, Salomon Whitney is
consolidated into Live Ventures’ financial statements as a variable
interest entity.
Contact:Live Ventures IncorporatedGreg Powell,
Director of Investor
Relations725.500.5597gpowell@liveventures.comwww.liveventures.com
Source: Live Ventures Incorporated
LIVE VENTURES
INCORPORATEDCONSOLIDATED BALANCE
SHEETS(dollars in thousands, except per share amounts)
|
|
|
March 31, 2022 |
|
|
September 30, 2021 |
|
|
|
|
(Unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Cash |
|
$ |
6,190 |
|
|
$ |
4,664 |
|
| Trade receivables, net of
allowance for doubtful accounts of approximately $34,000 at March
31, 2022 and $61,000 at September 30, 2021 |
|
|
22,204 |
|
|
|
21,559 |
|
| Inventories, net of reserves
of approximately $1.7 million at March 31, 2022, and approximately
$1.8 million at September 30, 2021 |
|
|
79,364 |
|
|
|
70,747 |
|
| Prepaid expenses and other
current assets |
|
|
2,064 |
|
|
|
1,640 |
|
| Debtor in possession
assets |
|
|
— |
|
|
|
180 |
|
|
Total current assets |
|
|
109,822 |
|
|
|
98,790 |
|
| Property and equipment, net of
accumulated depreciation of approximately $23.1 million at March
31, 2022, and approximately $20.6 million at September 30,
2021 |
|
|
40,585 |
|
|
|
35,632 |
|
| Right of use asset - operating
leases |
|
|
28,415 |
|
|
|
30,466 |
|
| Deposits and other assets |
|
|
798 |
|
|
|
682 |
|
| Intangible assets, net of
accumulated amortization of approximately $2.7 million at March 31,
2022, and approximately $2.2 million at September 30, 2021 |
|
|
4,201 |
|
|
|
4,697 |
|
| Goodwill |
|
|
41,471 |
|
|
|
41,471 |
|
|
Total assets |
|
$ |
225,292 |
|
|
$ |
211,738 |
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
14,597 |
|
|
$ |
10,644 |
|
|
Accrued liabilities |
|
|
12,117 |
|
|
|
17,048 |
|
|
Income taxes payable |
|
|
728 |
|
|
|
876 |
|
|
Current portion of lease obligations - operating leases |
|
|
7,311 |
|
|
|
7,202 |
|
|
Current portion of long-term debt |
|
|
20,032 |
|
|
|
16,055 |
|
|
Current portion of notes payable related parties |
|
|
2,000 |
|
|
|
2,000 |
|
|
Debtor-in-possession liabilities |
|
|
— |
|
|
|
11,135 |
|
|
Total current liabilities |
|
|
56,785 |
|
|
|
64,960 |
|
| Long-term debt, net of current
portion |
|
|
39,359 |
|
|
|
37,559 |
|
| Lease obligation long term -
operating leases |
|
|
27,158 |
|
|
|
29,343 |
|
| Notes payable related parties,
net of current portion |
|
|
2,000 |
|
|
|
2,000 |
|
| Deferred taxes |
|
|
5,053 |
|
|
|
2,796 |
|
|
Total liabilities |
|
|
130,355 |
|
|
|
136,658 |
|
| Commitments and
contingencies |
|
|
|
|
|
|
| Stockholders' equity: |
|
|
|
|
|
|
|
Series B convertible preferred stock, $0.001 par value, 1,000,000
shares authorized, 0 and 315,790 shares issued and outstanding at
March 31, 2022 and September 30, 2021, respectively |
|
|
— |
|
|
|
— |
|
|
Series E convertible preferred stock, $0.001 par value, 200,000
shares authorized, 47,840 shares issued and outstanding at March
31, 2022 and September 30, 2021, respectively, with a liquidation
preference of $0.30 per share outstanding |
|
|
— |
|
|
|
— |
|
|
Common stock, $0.001 par value, 10,000,000 shares authorized,
3,095,616 and 1,582,334 shares issued and outstanding at March 31,
2022 and September 30, 2021, respectively |
|
|
2 |
|
|
|
2 |
|
|
Paid in capital |
|
|
65,321 |
|
|
|
65,284 |
|
|
Treasury stock common 600,188 shares as of March 31, 2022 and
534,520 shares as of September 30, 2021, respectively |
|
|
(6,603 |
) |
|
|
(4,519 |
) |
|
Treasury stock Series E preferred 50,000 shares as of March 31,
2022 and of September 30, 2021, respectively |
|
|
(7 |
) |
|
|
(7 |
) |
|
Retained earnings |
|
|
36,672 |
|
|
|
14,768 |
|
|
Equity attributable to Live stockholders |
|
|
95,385 |
|
|
|
75,528 |
|
|
Non-controlling interest |
|
|
(448 |
) |
|
|
(448 |
) |
|
Total stockholders' equity |
|
|
94,937 |
|
|
|
75,080 |
|
|
Total liabilities and stockholders' equity |
|
$ |
225,292 |
|
|
$ |
211,738 |
|
The accompanying notes are an integral part of these
consolidated financial statements.
LIVE VENTURES,
INCORPORATEDCONSOLIDATED STATEMENTS OF
INCOME(UNAUDITED)(dollars in thousands,
except per share)
|
|
|
For the Three Months Ended March 31, |
|
|
For the Six Months Ended March 31, |
|
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Revenue |
|
$ |
69,706 |
|
|
$ |
70,890 |
|
|
$ |
144,864 |
|
|
$ |
133,344 |
|
| Cost of revenue |
|
|
44,753 |
|
|
|
44,400 |
|
|
|
92,295 |
|
|
|
84,585 |
|
| Gross profit |
|
|
24,953 |
|
|
|
26,490 |
|
|
|
52,569 |
|
|
|
48,759 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
13,154 |
|
|
|
12,565 |
|
|
|
27,311 |
|
|
|
24,844 |
|
|
Sales and marketing expenses |
|
|
3,350 |
|
|
|
2,800 |
|
|
|
6,402 |
|
|
|
5,499 |
|
|
Total operating expenses |
|
|
16,504 |
|
|
|
15,365 |
|
|
|
33,713 |
|
|
|
30,343 |
|
| Operating income |
|
|
8,449 |
|
|
|
11,125 |
|
|
|
18,856 |
|
|
|
18,416 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(858 |
) |
|
|
(1,649 |
) |
|
|
(1,875 |
) |
|
|
(3,119 |
) |
|
Gain on Payroll Protection Program loan forgiveness |
|
|
— |
|
|
|
1,382 |
|
|
|
— |
|
|
|
1,382 |
|
|
Loss on debt extinguishment |
|
|
(363 |
) |
|
|
— |
|
|
|
(363 |
) |
|
|
— |
|
|
Loss on disposal of fixed assets |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
Gain on bankruptcy settlement |
|
|
11,362 |
|
|
|
1,115 |
|
|
|
11,352 |
|
|
|
1,115 |
|
|
Other income (expense) |
|
|
292 |
|
|
|
(50 |
) |
|
|
418 |
|
|
|
858 |
|
|
Total other income, net |
|
|
10,432 |
|
|
|
798 |
|
|
|
9,531 |
|
|
|
236 |
|
| Income before provision for
income taxes |
|
|
18,881 |
|
|
|
11,923 |
|
|
|
28,387 |
|
|
|
18,652 |
|
| Provision for income
taxes |
|
|
3,523 |
|
|
|
3,228 |
|
|
|
6,483 |
|
|
|
4,678 |
|
| Net income |
|
|
15,358 |
|
|
|
8,695 |
|
|
|
21,904 |
|
|
|
13,974 |
|
| Net income attributable to
non-controlling interest |
|
|
— |
|
|
|
39 |
|
|
|
— |
|
|
|
173 |
|
| Net income attributable to
Live stockholders |
|
$ |
15,358 |
|
|
$ |
8,734 |
|
|
$ |
21,904 |
|
|
$ |
14,147 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
4.90 |
|
|
$ |
5.62 |
|
|
$ |
6.96 |
|
|
$ |
9.22 |
|
|
Diluted |
|
$ |
4.84 |
|
|
$ |
2.66 |
|
|
$ |
6.87 |
|
|
$ |
4.34 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
3,134,540 |
|
|
|
1,555,175 |
|
|
|
3,148,059 |
|
|
|
1,534,287 |
|
|
Diluted |
|
|
3,172,881 |
|
|
|
3,284,133 |
|
|
|
3,187,124 |
|
|
|
3,263,245 |
|
LIVE VENTURES
INCORPORATEDNON-GAAP MEASURES
RECONCILIATION(dollars in thousands)
Adjusted EBITDA
The following table provides a reconciliation of Net (loss)
income to total Adjusted EBITDA for the periods indicated (amounts
in thousands):
| |
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
| |
|
March 31, 2022 |
|
|
March 31, 2021 |
|
|
March 31, 2022 |
|
|
March 31, 2021 |
|
|
Net income |
|
$ |
15,358 |
|
|
$ |
8,695 |
|
|
$ |
21,904 |
|
|
$ |
13,974 |
|
| Depreciation and
amortization |
|
|
1,496 |
|
|
|
1,706 |
|
|
|
3,045 |
|
|
|
3,420 |
|
| Stock-based compensation |
|
|
19 |
|
|
|
270 |
|
|
|
37 |
|
|
|
287 |
|
| Interest expense, net |
|
|
858 |
|
|
|
1,649 |
|
|
|
1,875 |
|
|
|
3,119 |
|
| Income tax expense |
|
|
3,523 |
|
|
|
3,228 |
|
|
|
6,483 |
|
|
|
4,678 |
|
| Gain on bankruptcy
settlement |
|
|
(11,362 |
) |
|
|
(1,115 |
) |
|
|
(11,352 |
) |
|
|
(1,115 |
) |
| Gain (loss) on extinguishment
of debt |
|
|
363 |
|
|
|
(1,382 |
) |
|
|
363 |
|
|
|
(1,382 |
) |
| Non-recurring loan costs |
|
|
— |
|
|
|
271 |
|
|
|
— |
|
|
|
271 |
|
| Adjusted EBITDA |
|
$ |
10,255 |
|
|
$ |
13,322 |
|
|
$ |
22,355 |
|
|
$ |
23,252 |
|
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