Live Ventures Incorporated (Nasdaq: LIVE) (“Live Ventures” or the
“Company”), a diversified holding company, today announced
financial results for its fiscal third quarter ended June 30,
2023.
Fiscal Third Quarter 2023 Key Highlights:
- Revenues were $91.5 million, as compared with $68.3 million, an
increase of 34.1% over the prior year period
- Net income was $1.1 million and diluted earnings per share
(“EPS”) were $0.33, as compared with $3.5 million and diluted EPS
of $1.11 in the prior year period
- Adjusted EBITDA¹ was $9.6 million, as compared with $8.8
million, an increase of 8.3% over the prior year period
- Total assets of $360.2 million
- Stockholders’ equity of $104.2 million
- Approximately $32.3 million of cash and availability under the
Company’s credit facilities at the end of the quarter
Subsequent to quarter end, the Company acquired Precision Metal
Works (“PMW”) for total consideration of $28 million, adding
approximately $75 million of revenue per year. PMW manufactures and
supplies highly-engineered parts and components. PMW offers
world-class metal forming, assembly, and finishing solutions across
diverse industries, including appliance, automotive, hardware,
electrical, electronic, and medical products and devices.
“Amidst challenging economic headwinds during the quarter,
revenue increased 34.1% and Adjusted EBITDA rose by 8.3%. This was
largely driven by the strategic acquisitions of Flooring
Liquidators, Inc. (“Flooring Liquidators”) and The Kinetic Co.
(“Kinetic”), which together contributed a substantial $34.4 million
in revenue and $4.0 million in Adjusted EBITDA for the quarter.
While some of our segments experienced declines, our steadfast
focus on expansion and innovation allowed us to continue our
journey toward sustained success,” commented David Verret, Chief
Financial Officer of Live Ventures.
“The acquisition of PMW is a source of great excitement for us
as it complements our current steel manufacturing operations and
aligns perfectly with our long-term 'buy-build-hold' strategy. We
see immense potential with this acquisition,” stated Jon Isaac,
President and Chief Executive Officer of Live Ventures. “In
addition, we are making steady progress with our recent
acquisitions by bolstering their capabilities and product
offerings. Our dedication to generating long-term value for our
stockholders remains steadfast. Despite the current market
challenges, we have full confidence in our ability to navigate
through them.”
¹ Adjusted EBITDA is a non-GAAP measure. A reconciliation of the
non-GAAP measures is included below.
Third Quarter FY 2023 Financial Summary (in thousands
except per share amounts)
| |
During the three months ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
% Change |
| Revenues |
$ |
91,516 |
|
$ |
68,269 |
|
34.1 |
% |
| Operating Income |
$ |
5,561 |
|
$ |
5,864 |
|
-5.2 |
% |
| Net income |
$ |
1,060 |
|
$ |
3,472 |
|
-69.5 |
% |
| Diluted earnings per
share |
$ |
0.33 |
|
$ |
1.11 |
|
-70.3 |
% |
| Adjusted EBITDA |
$ |
9,575 |
|
$ |
8,840 |
|
8.3 |
% |
Third quarter FY 2023 revenues of $91.5 million increased 34.1%.
The increase is primarily attributable to incremental revenue of
approximately $34.4 million related to the recently acquired
Flooring Liquidators and Kinetic. The increase was partially offset
by decreased revenues of approximately $11.2 million in the other
businesses, which is primarily due to reduced demand and
inflationary pressures.
Operating income decreased 5.2% to $5.6 million for the third
quarter of FY 2023, as compared to $5.9 million in the prior year
period. The decrease in operating income is primarily attributable
to lower revenues and higher costs in the Retail Entertainment,
Flooring Manufacturing and Corporate segments, partially offset by
the additions of Flooring Liquidators and Kinetic.
For the three months ended June 30, 2023, net income was $1.1
million and diluted EPS was $0.33, as compared with net income of
$3.5 million and diluted EPS of $1.11 in the prior year period. The
decrease in net income is attributable to lower operating income
and increased interest expense. The increase in interest expense is
primarily related to the incremental debt incurred in the Flooring
Liquidators and Kinetic acquisitions.
Third quarter FY 2023 Adjusted EBITDA of $9.6 million increased
approximately $0.7 million, or 8.3%, as compared to the prior year
period. The increase is primarily due to the acquisitions of
Flooring Liquidators and Kinetic offset by decreases in the other
businesses.
As of June 30, 2023, the Company had total cash availability of
$32.3 million, consisting of cash on hand of $3.5 million and cash
availability under its various lines of credit of $28.8
million.
Third Quarter FY 2023 Segment Results (in
thousands)
| |
During the three months ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
| Revenues |
|
|
|
|
|
| Retail - Entertainment |
$ |
18,009 |
|
|
$ |
19,227 |
|
|
-6.3 |
% |
| Retail - Flooring ² |
|
27,449 |
|
|
|
- |
|
|
N/A |
|
| Flooring Manufacturing |
|
27,424 |
|
|
|
32,188 |
|
|
-14.8 |
% |
| Steel Manufacturing ³ |
|
18,409 |
|
|
|
14,974 |
|
|
22.9 |
% |
| Corporate & other |
|
225 |
|
|
|
1,880 |
|
|
-88.0 |
% |
|
|
$ |
91,516 |
|
|
$ |
68,269 |
|
|
34.1 |
% |
|
|
|
|
|
|
|
| |
During the three months ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
| Operating Income
(loss) |
|
|
|
|
|
| Retail - Entertainment |
$ |
1,548 |
|
|
$ |
2,202 |
|
|
-29.7 |
% |
| Retail - Flooring ² |
|
1,049 |
|
|
|
- |
|
|
N/A |
|
| Flooring Manufacturing |
|
2,022 |
|
|
|
3,289 |
|
|
-38.5 |
% |
| Steel Manufacturing ³ |
|
2,703 |
|
|
|
1,268 |
|
|
113.2 |
% |
| Corporate & other |
|
(1,761 |
) |
|
|
(895 |
) |
|
N/A |
|
|
|
$ |
5,561 |
|
|
$ |
5,864 |
|
|
-5.2 |
% |
|
|
|
|
|
|
|
| |
During the three months ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
| Adjusted
EBITDA |
|
|
|
|
|
| Retail - Entertainment |
$ |
1,864 |
|
|
$ |
2,456 |
|
|
-24.1 |
% |
| Retail - Flooring ² |
|
2,083 |
|
|
|
- |
|
|
N/A |
|
| Flooring Manufacturing |
|
2,935 |
|
|
|
3,927 |
|
|
-25.3 |
% |
| Steel Manufacturing ³ |
|
3,534 |
|
|
|
2,441 |
|
|
44.8 |
% |
| Corporate & other |
|
(841 |
) |
|
|
16 |
|
|
N/A |
|
| Total Adjusted EBITDA |
$ |
9,575 |
|
|
$ |
8,840 |
|
|
8.3 |
% |
|
|
|
|
|
|
|
| Adjusted
EBITDA as a percentage of revenue |
|
|
|
|
| Retail - Entertainment |
|
10.3 |
% |
|
|
12.8 |
% |
|
|
| Retail - Flooring ² |
|
7.6 |
% |
|
N/A |
|
|
|
| Flooring Manufacturing |
|
10.7 |
% |
|
|
12.2 |
% |
|
|
| Steel Manufacturing ³ |
|
19.2 |
% |
|
|
16.3 |
% |
|
|
| Corporate & other |
N/A |
|
|
N/A |
|
|
|
| Consolidated adjusted
EBITDA |
|
|
|
|
|
| as a percentage of
revenue |
|
10.5 |
% |
|
|
12.9 |
% |
|
|
² includes Flooring Liquidators in FY 2023 results³ includes
Kinetic in FY 2023 results
Retail - Entertainment
Third quarter FY 2023 Retail Entertainment segment revenues of
$18.0 million decreased approximately $1.2 million, or 6.3%, as
compared to the prior year. Revenues decreased due to reduced
demand. Third quarter gross margin was 54.7%, as compared to 53.2%
for the prior year period. Operating income for the third quarter
was approximately $1.5 million, as compared to operating income of
approximately $2.2 million for the prior year period.
Retail - Flooring
The Retail Flooring segment consists of Flooring Liquidators,
which was acquired in January 2023. Third quarter FY 2023 Retail -
Flooring Segment revenues were $27.4 million and gross margin was
37.8%. Operating income for the three months ended June 30, 2023
was approximately $1.0 million. During the quarter Flooring
Liquidators acquired certain assets of Cal Coast Carpet Warehouse,
Inc.
Flooring Manufacturing
Third quarter FY 2023 Flooring Manufacturing Segment revenues of
$27.4 million decreased by approximately $4.8 million, or 14.8%, as
compared to the prior year period, primarily due to reduced
customer demand. Third quarter gross margin was 23.3% as compared
to the prior year period of 23.2%. Operating income for the third
quarter was approximately $2.0 million, as compared to operating
income of approximately $3.3 million for the prior year period.
Steel Manufacturing
Third quarter FY 2023 Steel Manufacturing Segment revenues of
$18.4 million increased by approximately $3.4 million, or 22.9%, as
compared to the prior year period, primarily due to the acquisition
of Kinetic. Third quarter gross margin was 29.2%, as compared to
26.8% for the prior year period. The increase in gross margin is
attributable to Kinetic. Operating income for the three months
ended June 30, 2023 was approximately $2.7 million, as compared to
operating income of approximately $1.3 million in the prior period,
the increase is due to Kinetic.
Corporate and Other
Third quarter FY 2023 Corporate and Other Segment revenues
decreased by $1.7 million, primarily due to decreased revenue for
Salomon Whitney LLC (“SW Financial”). The decrease in revenue was
primarily due to the shut-down of operations of SW Financial in May
2023. Operating loss for the three months ended June 30, 2023 was
approximately $1.8 million, as compared to a loss of approximately
$0.9 million in the prior period. As a result of the shut-down of
operations of SW Financial, the Company recorded a gain on receipt
of settlement in the amount of $2.0 million, with $1.0 million
recognized in the second quarter and $1.0 million recognized in the
third quarter, and a loss on deconsolidation of SW Financial's
assets and liabilities of approximately $1.7 million recognized in
the third quarter.
Nine Months FY 2023 Financial Summary (in thousands
except per share amounts)
| |
During the nine months ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
% Change |
| Revenues |
$ |
251,624 |
|
$ |
213,133 |
|
18.1 |
% |
| Operating Income |
$ |
15,080 |
|
$ |
24,720 |
|
-39.0 |
% |
| Net income |
$ |
4,462 |
|
$ |
25,376 |
|
-82.4 |
% |
| Diluted earnings per
share |
$ |
1.42 |
|
$ |
8.01 |
|
-82.3 |
% |
| Adjusted EBITDA |
$ |
26,300 |
|
$ |
31,193 |
|
-15.7 |
% |
Revenues increased approximately $38.5 million, or 18.1%, to
$251.6 million for the nine months ended June 30, 2023, as compared
to the prior year period. The increase is primarily attributable to
the Flooring Liquidators and Kinetic acquisitions, which
contributed incremental revenue of approximately $67.3 million,
partially offset by decreased revenues in the other businesses
approximately $28.8 million. The decrease in revenues is primarily
due to reduced demand.
Operating income decreased to $15.1 million for the nine months
ended June 30, 2023, as compared to $24.7 million in the prior year
period. The decrease in operating income is primarily attributable
to lower gross profit margins as a result of inflationary cost
increases and lower operating margins primarily due to higher
general and administrative expenses related to the acquisitions of
Flooring Liquidators and Kinetic.
For the nine months ended June 30, 2023, net income was $4.5
million and diluted EPS was $1.42, as compared with net income of
$25.4 million and diluted EPS of $8.01 in the prior year period.
The decrease in net income is attributable to lower profit margins
as a result of inflationary cost increases. In addition, the prior
year’s net income included a benefit of approximately $11.4 million
or $3.56 per diluted share for a gain on bankruptcy settlement of
ApplianceSmart, Inc.
Adjusted EBITDA for the nine months ended June 30, 2023 was
$26.3 million, a decrease of approximately $4.9 million, or 15.7%,
as compared to the prior year period. The decrease is primarily due
to decreases in operating income, partially offset by increases
related to the acquisitions of Flooring Liquidators and
Kinetic.
Nine Months FY 2023 Segment Results (in
thousands)
| |
During the nine months ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
| Revenues |
|
|
|
|
|
| Retail - Entertainment |
$ |
60,388 |
|
|
$ |
66,179 |
|
|
-8.8 |
% |
| Retail - Flooring ² |
|
48,218 |
|
|
|
- |
|
|
N/A |
|
| Flooring Manufacturing |
|
84,195 |
|
|
|
97,832 |
|
|
-13.9 |
% |
| Steel Manufacturing ³ |
|
56,306 |
|
|
|
41,367 |
|
|
36.1 |
% |
| Corporate & other |
|
2,517 |
|
|
|
7,755 |
|
|
-67.5 |
% |
|
|
$ |
251,624 |
|
|
$ |
213,133 |
|
|
18.1 |
% |
|
|
|
|
|
|
|
| |
During the nine months ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
| Operating Income
(loss) |
|
|
|
|
|
| Retail - Entertainment |
$ |
7,542 |
|
|
$ |
10,144 |
|
|
-25.7 |
% |
| Retail - Flooring ² |
|
833 |
|
|
|
- |
|
|
N/A |
|
| Flooring Manufacturing |
|
5,179 |
|
|
|
11,772 |
|
|
-56.0 |
% |
| Steel Manufacturing ³ |
|
6,972 |
|
|
|
5,641 |
|
|
23.6 |
% |
| Corporate & other |
|
(5,446 |
) |
|
|
(2,837 |
) |
|
N/A |
|
|
|
$ |
15,080 |
|
|
$ |
24,720 |
|
|
-39.0 |
% |
|
|
|
|
|
|
|
| |
During the nine months ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
| Adjusted
EBITDA |
|
|
|
|
|
|
Retail - Entertainment |
$ |
8,519 |
|
|
$ |
11,270 |
|
|
-24.4 |
% |
| Retail - Flooring ² |
|
3,194 |
|
|
|
- |
|
|
N/A |
|
| Flooring Manufacturing |
|
8,082 |
|
|
|
13,761 |
|
|
-41.3 |
% |
| Steel Manufacturing ³ |
|
9,729 |
|
|
|
7,113 |
|
|
36.8 |
% |
| Corporate & other |
|
(3,224 |
) |
|
|
(951 |
) |
|
N/A |
|
| Total Adjusted EBITDA |
$ |
26,300 |
|
|
$ |
31,193 |
|
|
-15.7 |
% |
|
|
|
|
|
|
|
| Adjusted
EBITDA as a percentage of revenue |
|
|
|
|
| Retail - Entertainment |
|
14.1 |
% |
|
|
17.0 |
% |
|
|
| Retail - Flooring ² |
|
6.6 |
% |
|
N/A |
|
|
|
| Flooring Manufacturing |
|
9.6 |
% |
|
|
14.1 |
% |
|
|
| Steel Manufacturing ³ |
|
17.3 |
% |
|
|
17.2 |
% |
|
|
| Corporate & other |
N/A |
|
|
N/A |
|
|
|
| Consolidated adjusted
EBITDA |
|
|
|
|
|
| as a percentage of
revenue |
|
10.5 |
% |
|
|
14.6 |
% |
|
|
² includes Flooring Liquidators in FY 2023 results³ includes
Kinetic in FY 2023 results
Retail - Entertainment
Retail Entertainment segment revenues for the nine months ended
June 30, 2023 were approximately $60.4 million, a decrease of
approximately $5.8 million, or 8.8%, as compared to the prior year
revenues of approximately $66.2 million. Revenues decreased due to
reduced demand. Gross margin was 54.0% for the nine months ended
June 30, 2023, as compared to 52.5% for the prior year period.
Operating income for the nine months ended June 30, 2023 was
approximately $7.5 million, as compared to operating income of
approximately $10.1 million for the prior year period.
Retail - Flooring
Retail Flooring segment revenues for the nine months ended June
30, 2023 were $48.2 million and gross margin was 37.6%. Operating
income for the nine months ended June 30, 2023 was $0.8
million.
Flooring Manufacturing
Revenues for the nine months ended June 30, 2023 were
approximately $84.2 million, a decrease of approximately $13.6
million, or 13.9%, as compared to the prior year period revenues of
approximately $97.8 million, primarily due to reduced customer
demand as a result of inflationary factors. Gross margin was 21.8%
for the nine months ended June 30, 2023, as compared to 25.6% for
the prior year period. Operating income for the nine months ended
June 30, 2023 was approximately $5.2 million, as compared to
operating income of approximately $11.8 million for the prior year
period.
Steel Manufacturing
Revenues for the nine months ended June 30, 2023 increased by
$14.9 million or 36.1% to approximately $56.3 million, as compared
to the prior year period revenues of $41.4 million. The increase in
revenues is primarily due to the acquisition of Kinetic. Gross
margin was 27.4% for the nine months ended June 30, 2023, as
compared to 28.7% for the prior year period. Operating income for
the nine months ended June 30, 2023 was approximately $7.0 million,
as compared to operating income of approximately $5.6 in the prior
period.
Corporate and Other
Revenues for the nine months ended June 30, 2023 decreased by
$5.2 million primarily due to weakness at SW Financial and the
shut-down of operations in May 2023. Operating loss for the nine
months ended June 30, 2023 was approximately $5.4 million, as
compared to a loss of approximately $2.8 million in the prior
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 (as defined in
the Private Securities Litigation Reform Act of 1995) that involves
risks and uncertainties that could cause results to be materially
different from expectations. 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, including statements relating to
accretion of the PMW acquisition, alignment of the PMW acquisition
with the Company’s strategy, increased capabilities and product
offerings, and creation of long-term stockholder value. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," and similar statements. Live Ventures 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 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,
2022 (available at http://www.sec.gov). Live Ventures undertakes no
obligation to publicly update or revise any statements in this
release, 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, CEO 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 IncorporatedGreg Powell,
Director of Investor
Relations725.500.5597gpowell@liveventures.comwww.liveventures.com
Source: Live Ventures Incorporated
|
LIVE VENTURES INCORPORATEDCONSOLIDATED
BALANCE SHEETS(UNAUDITED)(dollars in
thousands, except per share amounts) |
|
|
|
|
|
June 30, 2023 |
|
|
September 30, 2022 |
| |
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
| Cash |
$ |
3,547 |
|
$ |
4,600 |
| Trade receivables, net of
allowance for doubtful accounts of $194,000 at June 30, 2023
and $132,000 at September 30, 2022 |
|
27,358 |
|
|
25,665 |
| Inventories, net of reserves
of $3.6 million at June 30, 2023 and $2.4 million at
September 30, 2022 |
|
114,075 |
|
|
97,659 |
| Income taxes receivable |
|
4,087 |
|
|
4,403 |
| Prepaid expenses and other
current assets |
|
3,249 |
|
|
2,477 |
|
Total current assets |
|
152,316 |
|
|
134,804 |
| Property and equipment, net of
accumulated depreciation of $34.3 million at June 30, 2023,
and $26.7 million at September 30, 2022 |
|
65,431 |
|
|
64,590 |
| Right of use asset - operating
leases |
|
45,321 |
|
|
33,659 |
| Deposits and other assets |
|
1,593 |
|
|
647 |
| Intangible assets, net of
accumulated amortization of $3.4 million at June 30, 2023 and
$2.1 million at September 30, 2022 |
|
24,117 |
|
|
3,844 |
| Goodwill |
|
71,389 |
|
|
41,093 |
|
Total assets |
$ |
360,167 |
|
$ |
278,637 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
14,808 |
|
$ |
10,899 |
|
Accrued liabilities |
|
22,748 |
|
|
16,486 |
|
Current portion of lease obligations - operating leases |
|
10,582 |
|
|
7,851 |
|
Current portion of lease obligations - finance leases |
|
355 |
|
|
217 |
|
Current portion of long-term debt |
|
23,689 |
|
|
18,935 |
|
Current portion of notes payable related parties |
|
1,000 |
|
|
2,000 |
|
Total current liabilities |
|
73,182 |
|
|
56,388 |
| Long-term debt, net of current
portion |
|
64,519 |
|
|
59,704 |
| Lease obligation long term -
operating leases |
|
39,588 |
|
|
30,382 |
| Lease obligation long term -
finance leases |
|
20,004 |
|
|
19,568 |
| Notes payable related parties,
net of current portion |
|
44,773 |
|
|
5,000 |
| Deferred taxes |
|
13,046 |
|
|
8,818 |
| Other non-current
obligations |
|
852 |
|
|
1,615 |
|
Total liabilities |
|
255,964 |
|
|
181,475 |
| 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
June 30, 2023 and September 30, 2022, respectively, with
a liquidation preference of $0.30 per share outstanding |
|
— |
|
|
— |
|
Common stock, $0.001 par value, 10,000,000 shares authorized,
3,164,432 and 3,074,833 shares issued and outstanding at
June 30, 2023 and September 30, 2022, respectively |
|
2 |
|
|
2 |
|
Paid in capital |
|
68,888 |
|
|
65,321 |
|
Treasury stock common 659,961 and 620,971 shares as of
June 30, 2023 and September 30, 2022, respectively |
|
(8,203) |
|
|
(7,215) |
|
Treasury stock Series E preferred 80,000 shares as of June 30,
2023 and September 30, 2022, respectively |
|
(7) |
|
|
(7) |
|
Retained earnings |
|
43,971 |
|
|
39,509 |
|
Equity attributable to Live stockholders |
|
104,651 |
|
|
97,610 |
|
Non-controlling interest |
|
(448) |
|
|
(448) |
|
Total stockholders' equity |
|
104,203 |
|
|
97,162 |
|
Total liabilities and stockholders' equity |
$ |
360,167 |
|
$ |
278,637 |
|
LIVE VENTURES, INCORPORATEDCONSOLIDATED
STATEMENTS OF INCOME(UNAUDITED)(dollars
in thousands, except per share) |
| |
| |
For the Three Months Ended June 30, |
|
For the Nine Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
| Revenues |
$ |
91,516 |
|
$ |
68,269 |
|
$ |
251,624 |
|
$ |
213,133 |
| Cost of revenues |
|
59,347 |
|
|
45,920 |
|
|
165,903 |
|
|
138,215 |
| Gross profit |
|
32,169 |
|
|
22,349 |
|
|
85,721 |
|
|
74,918 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
23,226 |
|
|
13,407 |
|
|
60,443 |
|
|
40,718 |
|
Sales and marketing expenses |
|
3,382 |
|
|
3,078 |
|
|
10,198 |
|
|
9,480 |
|
Total operating expenses |
|
26,608 |
|
|
16,485 |
|
|
70,641 |
|
|
50,198 |
| Operating income |
|
5,561 |
|
|
5,864 |
|
|
15,080 |
|
|
24,720 |
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(3,485) |
|
|
(674) |
|
|
(8,767) |
|
|
(2,549) |
|
Gain (loss) on debt extinguishment |
|
— |
|
|
279 |
|
|
— |
|
|
(84) |
|
Gain on disposal of fixed assets |
|
(29) |
|
|
(443) |
|
|
(22) |
|
|
(444) |
|
Loss on write-off of ROU asset |
|
— |
|
|
(522) |
|
|
— |
|
|
(522) |
|
Salomon Whitney settlement |
|
1,000 |
|
|
— |
|
|
2,000 |
|
|
— |
|
Loss on disposition of Salomon Whitney |
|
(1,696) |
|
|
— |
|
|
(1,696) |
|
|
— |
|
Gain on bankruptcy settlement |
|
— |
|
|
— |
|
|
— |
|
|
11,352 |
|
Other income (expense) |
|
6 |
|
|
333 |
|
|
(671) |
|
|
751 |
|
Total other income (expense), net |
|
(4,204) |
|
|
(1,027) |
|
|
(9,156) |
|
|
8,504 |
| Income before provision for
income taxes |
|
1,357 |
|
|
4,837 |
|
|
5,924 |
|
|
33,224 |
| Provision for income taxes |
|
297 |
|
|
1,365 |
|
|
1,462 |
|
|
7,848 |
| Net income |
|
1,060 |
|
|
3,472 |
|
|
4,462 |
|
|
25,376 |
| Net income attributable to Live
stockholders |
$ |
1,060 |
|
$ |
3,472 |
|
$ |
4,462 |
|
$ |
25,376 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.33 |
|
$ |
1.12 |
|
$ |
1.43 |
|
$ |
8.11 |
|
Diluted |
$ |
0.33 |
|
$ |
1.11 |
|
$ |
1.42 |
|
$ |
8.01 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
3,166,842 |
|
|
3,090,321 |
|
|
3,123,177 |
|
|
3,128,813 |
|
Diluted |
|
3,186,904 |
|
|
3,130,925 |
|
|
3,143,634 |
|
|
3,169,258 |
|
LIVE VENTURES INCORPORATEDNON-GAAP
MEASURES RECONCILIATION |
|
Adjusted EBITDA |
|
The following table provides a reconciliation of Net income to
total Adjusted EBITDA for the periods indicated (dollars in
thousands): |
|
|
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
|
|
June 30, 2023 |
|
|
June 30, 2022 |
|
|
June 30, 2023 |
|
|
June 30, 2022 |
| Net income |
$ |
1,060 |
|
$ |
3,472 |
|
$ |
4,462 |
|
$ |
25,376 |
| Depreciation and
amortization |
|
3,683 |
|
|
1,571 |
|
|
9,978 |
|
|
4,616 |
| Stock-based compensation |
|
287 |
|
|
— |
|
|
396 |
|
|
37 |
| Interest expense, net |
|
3,485 |
|
|
674 |
|
|
8,767 |
|
|
2,549 |
| Income tax expense |
|
297 |
|
|
1,365 |
|
|
1,462 |
|
|
7,848 |
| Gain on bankruptcy
settlement |
|
— |
|
|
— |
|
|
— |
|
|
(11,352) |
| (Gain)/loss on extinguishment of
debt |
|
— |
|
|
(279) |
|
|
— |
|
|
84 |
| SW Financial settlement gain |
|
(1,000) |
|
|
— |
|
|
(2,000) |
|
|
— |
| Disposition of SW Financial |
|
1,697 |
|
|
— |
|
|
1,697 |
|
|
— |
| Non-recurring costs for
acquisitions |
|
66 |
|
|
974 |
|
|
1,538 |
|
|
974 |
| Write-off of fixed assets |
|
— |
|
|
438 |
|
|
— |
|
|
438 |
| Write-off of ROU assets |
|
— |
|
|
522 |
|
|
— |
|
|
522 |
| Other non-recurring company
initiatives |
|
— |
|
|
103 |
|
|
— |
|
|
101 |
| Adjusted EBITDA |
$ |
9,575 |
|
$ |
8,840 |
|
$ |
26,300 |
|
$ |
31,193 |
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