Live Ventures Incorporated (Nasdaq: LIVE), a diversified holding
company, today announced financial results for its year ended
September 30, 2021.
Fiscal Year 2021 Key
Highlights:
- Revenues of $273.0 million
increased 42% over the prior year period;
- Gross profit of $99.5 million
increased 32% over the prior year period;
- Operating income of $35.8 million
increased 75% over the prior year period;
- Net income of $31.2 million
increased 186% over the prior year period;
- Fiscal Year 2021 Basic and Fully
Diluted EPS were $19.92 and $9.80, respectively, increased 211% and
217%, respectively, over the prior year period;
- Total assets of $211.7
million;
- Acquired an interest in Salomon
Whitney Financial in June 2021;
- Repurchased 35,435 shares of common
stock at an average price of $11.88 per share; and
- Approximately $35.8 million of cash
and availability under our credit facilities.
“I am incredibly happy with Live Venture’s
record financial performance for this fiscal year,” Jon Isaac,
President and CEO of Live Ventures commented. “While still in the
midst of the pandemic, and the significant uncertainty it brings,
Live Ventures executed our strategic plan, strengthened our
products, protected and enhanced our investments, and promoted our
corporate culture of success and family.”
Live Ventures reported revenues of $273 million,
and basic earnings per share (“EPS”) of $19.92, which represents an
increase of 42% and 211%, respectively, over the previous year. The
company also reported operating income of $35.8 million and net
income of $31.2 million, representing an increase of 75% and 186%,
respectively, over the same period last year.
“We continued to successfully execute our
patient and value-oriented mergers and acquisitions (M&A)
strategy,” continued Mr. Isaac. “Additionally, we balanced our
M&A activity with continued and significant investments in the
operations of our existing subsidiaries, with all of our major
subsidiaries recording significant year over year improvement.”
Net income for the year includes the benefit of
a gain on Payroll Protection Program loan forgiveness of $6.2
million and a gain from a settlement in the ApplianceSmart Chapter
11 proceeding of $1.8 million. As of September 30, 2021, the
company reported total assets of $211.7 million, and total cash and
cash availability under its various lines of credit of $35.8
million. Stockholders’ equity attributable to Live Ventures’
stockholders was $75.5 million as of September 30, 2021, or $48.22
per basic common share.1
Each of the company’s three main reporting
segments continued to demonstrate significant growth on a topline
and operating income basis compared to fiscal 2020.
“We are ending fiscal 2021 in our strongest
position yet with each of our diverse reporting segments providing
meaningful contribution and providing Live Ventures continued
liquidity and availability to invest in both new acquisitions and
our existing operations,” Mr. Isaac concluded. “Live Ventures has
had a record year in terms of performance. I am proud of the ways
in which our diverse portfolio was resilient in overcoming the
market and economic challenges caused by the continued COVID-19
pandemic in 2021 and I am excited by what the future will
bring.”
_____________________________
1 Stockholders equity attributable to stockholders is a non-GAAP
measure. A reconciliation of the non-GAAP measure is included
below.
Fiscal Year Ended September 30, 2021
Financial Summary
|
|
During the year ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
% Change |
Revenues |
|
$ |
272,981 |
|
$ |
191,720 |
|
42 |
% |
Operating
Income |
|
$ |
35,790 |
|
$ |
20,422 |
|
75 |
% |
Net income
applicable to common stock |
|
$ |
31,197 |
|
$ |
10,927 |
|
186 |
% |
Basic
earnings per share |
|
$ |
19.92 |
|
$ |
6.40 |
|
211 |
% |
|
|
During the year ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
% Change |
Revenues |
|
|
|
|
|
|
Retail |
|
$ |
88,845 |
|
$ |
73,563 |
|
21 |
% |
Flooring
Manufacturing |
|
$ |
130,223 |
|
$ |
109,642 |
|
19 |
% |
Steel
Manufacturing |
|
$ |
49,302 |
|
$ |
7,962 |
(a) |
519 |
% |
Corporate
& other |
|
$ |
4,611 |
|
$ |
553 |
|
734 |
% |
|
|
$ |
272,981 |
|
$ |
191,720 |
|
|
(a) Precision Marshall was acquired in July 2020. |
|
|
|
|
|
|
|
|
During the year ended September 30, |
|
|
|
2021 |
|
|
|
2020 |
|
|
% Change |
Operating income (loss) |
|
|
|
|
|
|
Retail |
|
$ |
16,340 |
|
|
$ |
8,737 |
|
|
87 |
% |
Flooring
Manufacturing |
|
$ |
20,203 |
|
|
$ |
16,082 |
|
|
26 |
% |
Steel
Manufacturing |
|
$ |
5,869 |
|
|
$ |
172 |
|
|
3312 |
% |
Corporate
& other |
|
$ |
(6,622 |
) |
|
$ |
(4,569 |
) |
|
-45 |
% |
|
|
$ |
35,790 |
|
|
$ |
20,422 |
|
|
|
|
|
|
|
|
|
|
Retail
Retail Segment Revenue for the year ended
September 30, 2021 increased by approximately $15.3 million, or
20.8%, as compared to the prior year, primarily due to new video
game and movie releases as compared to the prior year. Operating
income for the year ended September 30, 2021 was approximately
$16.3 million, as compared to approximately $8.7 million during the
prior year period primarily due to an increase in gross profit of
approximately $7.3 million.
Flooring Manufacturing
Flooring Manufacturing Segment Revenue for the
year ended September 30, 2021 increased by approximately $20.6
million, or 18.8%, as compared to the prior year period, due to
increased sales of carpets and hard surface products related to
development of new products. Operating income for the year ended
September 30, 2021 increased by approximately $4.1 million, or
25.6%, as compared to the prior year period.
Steel Manufacturing
Steel Manufacturing Segment Revenue was
approximately $49.3 million for the year ended September 30, 2021,
as compared to approximately $8.0 million for the year ended
September 30, 2020. Operating income was approximately $5.9 million
and approximately $0.2 million for the years ended September 30,
2021 and 2020, respectively. The increase in revenues and operating
income is primarily due to fiscal year 2020 representing a partial
year, as Precision Marshall was acquired in July 2020.
Corporate and Other
The increase in Corporate and Other Revenue is
primarily attributable to consolidation of Salomon Whitney in June
2021. Operating loss for the year ended September 30, 2021
increased by approximately $2.1 million as compared to the prior
year period.
Non-GAAP Financial
Information
Live Ventures believes that stockholders’ equity
per basic common share provides an additional tool for investors to
use in evaluating the company’s operating results and trends, and
therefore we are providing in this press release stockholders’
equity per basic common share, which is not a measure of our
financial performance or position under United States Generally
Accepted Accounting Principles (“GAAP”). Accordingly, stockholders’
equity per basic common share should not be considered in isolation
or as a substitute for measures prepared in accordance with
GAAP. This measure should be read in conjunction with our net
earnings, operating income, basic and diluted earnings per share
data, and other financial data prepared in accordance with
GAAP.
The Company defines stockholders’ equity per
basic common shares as total stockholders’ equity divided by basic
weighted average common shares outstanding for the period. A
reconciliation of the Company’s net income per basic common share
per GAAP to stockholders’ equity per common share is included in
the Non-GAAP Measure Reconciliation provided at the end of this
press release.
About Live Ventures
Live Ventures Incorporated (Nasdaq: LIVE) (“Live
Ventures” or the “Company”) is a rapidly growing, diversified
holding company with a strategic focus on value-oriented
acquisitions of domestic middle-market companies. Live Venture’s
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 to build increased
shareholder value through a disciplined buy-build-hold long-term
focused strategy. Live Ventures was founded in 1968 and refocused
in 2011 under our CEO and strategic investor, Jon Isaac. 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 (“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 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 60+ retail stores and its website, allowing the company to ship
product worldwide directly to the customer’s doorstep.
ApplianceSmart
ApplianceSmart® (“ApplianceSmart”) is based in
Columbus, Ohio and was acquired by Live Ventures in 2017.
ApplianceSmart sells new major household appliances in the United
States through its retail store. ApplianceSmart is the first
independent retailer in the nation to become a voluntary member of
the Environmental Protection Agency's Responsible Appliance
Disposal (RAD) Program. On December 9, 2019, ApplianceSmart filed a
voluntary petition in the United States Bankruptcy Court for the
Southern District of New York, seeking relief under Chapter 11 of
Title 11 of the United States Code.
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”) 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 September 30,
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 IncorporatedTim Matula, Investor
Relations(425)
836-9035tmatula@liveventures.comhttp://liveventures.com Source:
Live Ventures Incorporated
LIVE VENTURES
INCORPORATEDCONSOLIDATED BALANCE
SHEETS(dollars in thousands)
|
|
September 30, 2021 |
|
September 30, 2020 |
Assets |
|
|
|
|
Cash |
|
$ |
4,664 |
|
|
$ |
8,984 |
|
Trade
receivables, net |
|
|
21,559 |
|
|
|
20,121 |
|
Inventories,
net |
|
|
70,747 |
|
|
|
64,525 |
|
Prepaid
expenses and other current assets |
|
|
1,640 |
|
|
|
1,778 |
|
Debtor in
possession assets |
|
|
180 |
|
|
|
520 |
|
Total current assets |
|
|
98,790 |
|
|
|
95,928 |
|
Property and
equipment, net |
|
|
35,632 |
|
|
|
31,725 |
|
Right of use
asset - operating leases |
|
|
30,466 |
|
|
|
29,545 |
|
Deposits and
other assets |
|
|
682 |
|
|
|
223 |
|
Deferred
taxes |
|
|
— |
|
|
|
1,021 |
|
Intangible
assets, net |
|
|
4,697 |
|
|
|
1,063 |
|
Goodwill |
|
|
41,471 |
|
|
|
37,754 |
|
Total assets |
|
$ |
211,738 |
|
|
$ |
197,259 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
Liabilities: |
|
|
|
|
Accounts payable |
|
$ |
10,644 |
|
|
$ |
9,117 |
|
Accrued liabilities |
|
|
17,048 |
|
|
|
14,822 |
|
Income taxes payable |
|
|
876 |
|
|
|
736 |
|
Current portion of long-term debt |
|
|
16,055 |
|
|
|
11,986 |
|
Current portion of notes payable related parties |
|
|
2,000 |
|
|
|
1,297 |
|
Current portion of lease obligations - operating leases |
|
|
7,202 |
|
|
|
7,176 |
|
Debtor in possession liabilities |
|
|
11,135 |
|
|
|
12,228 |
|
Total current liabilities |
|
|
64,960 |
|
|
|
57,362 |
|
Long-term debt, net of current portion |
|
|
37,559 |
|
|
|
63,390 |
|
Lease obligation long term - operating leases |
|
|
29,343 |
|
|
|
28,101 |
|
Notes payable related parties, net of current portion |
|
|
2,000 |
|
|
|
4,000 |
|
Deferred tax liability |
|
|
2,796 |
|
|
|
— |
|
Other non-current obligations |
|
|
— |
|
|
|
734 |
|
Total liabilities |
|
|
136,658 |
|
|
|
153,587 |
|
Commitments
and contingencies |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Series B convertible preferred stock, $0.001 par value, 1,000,000
shares authorized, 315,790 and 214,244 shares issued and
outstanding at September 30, 2021 and September 30, 2020,
respectively |
|
|
— |
|
|
|
— |
|
Series E convertible preferred stock, $0.001 par value, 200,000
shares authorized, 47,840 and 47,840 issued and outstanding at
September 30, 2021 and September 30, 2020, respectively, with a
liquidation preference of $0.30 per share |
|
|
— |
|
|
|
— |
|
Common stock, $0.001 par value, 10,000,000 shares authorized,
1,582,334 shares issued and outstanding at September 30, 2021;
1,589,101 issued and outstanding at September 30, 2020 |
|
|
2 |
|
|
|
2 |
|
Paid-in capital |
|
|
65,284 |
|
|
|
64,472 |
|
Treasury stock common 499,085 shares as of September 30, 2021 and
262,177 shares as of September 30, 2020 |
|
|
(4,519 |
) |
|
|
(4,098 |
) |
Treasury stock Series E preferred 50,000 shares as of September 30,
2021 and September 30, 2020 |
|
|
(7 |
) |
|
|
(7 |
) |
Accumulated earnings (deficit) |
|
|
14,768 |
|
|
|
(16,429 |
) |
Equity attributable to Live stockholders |
|
|
75,528 |
|
|
|
43,940 |
|
Non-controlling interest |
|
|
(448 |
) |
|
|
(268 |
) |
Total stockholders' equity |
|
|
75,080 |
|
|
|
43,672 |
|
Total liabilities and stockholders' equity |
|
$ |
211,738 |
|
|
$ |
197,259 |
|
|
|
|
|
|
The accompanying notes are an integral part of
these consolidated financial statements.
LIVE VENTURES,
INCORPORATEDCONSOLIDATED STATEMENTS OF INCOME
(LOSS)(dollars in thousands, except per share)
|
|
Years Ended September 30, |
|
|
|
2021 |
|
|
|
2020 |
|
Revenues |
|
$ |
272,981 |
|
|
$ |
191,720 |
|
Cost of
revenues |
|
|
173,518 |
|
|
|
116,403 |
|
Gross
profit |
|
|
99,463 |
|
|
|
75,317 |
|
Operating
expenses: |
|
|
|
|
General and administrative expenses |
|
|
52,246 |
|
|
|
43,561 |
|
Sales and marketing expenses |
|
|
11,427 |
|
|
|
11,334 |
|
Total operating expenses |
|
|
63,673 |
|
|
|
54,895 |
|
Operating
income |
|
|
35,790 |
|
|
|
20,422 |
|
Other
(expense) income: |
|
|
|
|
Interest expense, net |
|
|
(5,205 |
) |
|
|
(5,254 |
) |
Gain on lease settlement, net |
|
|
— |
|
|
|
307 |
|
Gain on Payroll Protection Program loan forgiveness |
|
|
6,150 |
|
|
|
— |
|
Gain on bankruptcy settlement |
|
|
1,765 |
|
|
|
— |
|
Bargain purchase gain |
|
|
— |
|
|
|
1,507 |
|
Impairment charges |
|
|
— |
|
|
|
(525 |
) |
Other income (loss) |
|
|
1,179 |
|
|
|
(841 |
) |
Total other (expense) income, net |
|
|
3,889 |
|
|
|
(4,806 |
) |
Income
before income taxes |
|
|
39,679 |
|
|
|
15,616 |
|
Provision
for income taxes |
|
|
8,662 |
|
|
|
4,957 |
|
Net
income |
|
|
31,017 |
|
|
|
10,659 |
|
Net loss
attributable to non-controlling interest |
|
|
180 |
|
|
|
268 |
|
Net income
attributable to Live stockholders |
|
$ |
31,197 |
|
|
$ |
10,927 |
|
Income per
share: |
|
|
|
|
Basic |
|
$ |
19.92 |
|
|
$ |
6.40 |
|
Diluted |
|
$ |
9.80 |
|
|
$ |
3.09 |
|
Weighted
average common shares outstanding: |
|
|
|
|
Basic |
|
|
1,566,288 |
|
|
|
1,706,561 |
|
Diluted |
|
|
3,182,546 |
|
|
|
3,534,936 |
|
Dividends
declared - Series B convertible preferred stock |
|
$ |
— |
|
|
$ |
— |
|
Dividends
declared - Series E convertible preferred stock |
|
$ |
— |
|
|
$ |
1 |
|
Dividends
declared - Common stock |
|
$ |
— |
|
|
$ |
— |
|
LIVE VENTURES
INCORPORATEDNON-GAAP MEASURE
RECONCILIATION(dollars in thousands, except per share)
|
|
|
September
30, |
September
30, |
|
|
|
2021 |
2020 |
Net income applicable to Live Ventures’ stockholders |
|
$ |
31,197 |
|
10,927 |
|
Basic
weighted average common shares outstanding |
|
|
1,566,288 |
|
1,706,561 |
|
Basic
earnings per share |
|
$ |
19.92 |
|
6.40 |
|
|
|
|
|
|
|
|
|
|
|
Net income
applicable to Live Ventures’ stockholders |
|
$ |
31,197 |
|
10,927 |
|
Common
Stock |
|
|
2 |
|
2 |
|
Paid in
capital |
|
|
65,284 |
|
64,472 |
|
Treasury
stock common |
|
|
(4,519 |
) |
(4,098 |
) |
Treasury
stock Series E |
|
|
(7 |
) |
(7 |
) |
Accumulated
deficit as of September 30, 2020 |
|
|
(16,429 |
) |
(27,335 |
) |
Total
stockholders’ equity attributable to Live Ventures’
stockholders |
|
$ |
75,528 |
|
43,961 |
|
Basic
weighted average common shares outstanding |
|
|
1,566,288 |
|
1,706,561 |
|
Stockholders’ equity per basic common share |
|
$ |
48.22 |
|
25.76 |
|
|
|
|
|
|
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