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,
2023.
Fiscal Second Quarter 2023 Key Highlights:
- Revenues were $91.1 million, as compared with $69.7 million, an
increase of 30.7% over the prior year period
- Adjusted EBITDA¹ was $9.2 million, as compared with $10.3
million in the prior year period
- Net income was $1.6 million and diluted earnings per share
(“EPS”) were $0.49 per diluted share, as compared with $15.4
million and diluted EPS of $4.84 per diluted share in the prior
year period. Prior year period included a benefit of approximately
$11.4 million or $3.58 per diluted share for a gain on bankruptcy
settlement
- Stockholders’ equity of $103.2 million at the end of the
quarter
- Acquired Flooring Liquidators, Inc. (“Flooring Liquidators”)
for approximately $78.7 million during the quarter
- Total assets of $365.4 million at the
end of the quarter
- Approximately $25.9 million of cash and availability under the
Company’s credit facilities at the end of the quarter
“For the second quarter, we delivered revenue of $91.1 million,
net income of $1.6 million, and adjusted EBITDA of $9.2 million. We
were able to report these results despite a tough market
environment characterized by rising interest rates, inflation, and
weakening consumer demand. These results reflect our commitment to
disciplined execution, strategic investments, operational
excellence, and capital allocation, which have positioned us well
for continued success,” commented David Verret, Chief Financial
Officer of Live Ventures.
“With the Flooring Liquidators acquisition, we continue to
execute our multi-lever ‘buy-build-hold’ strategic plan while also
investing in our existing businesses,” stated Jon Isaac, President
and CEO of Live Ventures. “We remain committed to creating
long-term value for our stockholders. To achieve this, we focus on
strategic, well-planned acquisitions and investments aligning with
our growth objectives and generating sustainable returns. We
believe our financial strength and strategic focus position us well
to weather near-term headwinds and emerge as a stronger, more
resilient company in the long run.”
1 Adjusted EBITDA is a non-GAAP measure. A reconciliation
of the non-GAAP measures is included below.
Second Quarter FY 2023 Financial Summary (in thousands
except per share amounts)
|
During the three months ended March 31, |
|
|
2023 |
|
|
2022 |
|
% Change |
Revenues |
$ |
91,122 |
|
$ |
69,706 |
|
30.7% |
Operating Income |
$ |
4,952 |
|
$ |
8,449 |
|
-41.4% |
Net income |
$ |
1,558 |
|
$ |
15,358 |
|
-89.9% |
Diluted earnings per
share |
$ |
0.49 |
|
$ |
4.84 |
|
-89.9% |
Second quarter FY 2023 revenues of $91.1 million increased
30.7%. The increase is primarily attributable to the acquisitions
of Flooring Liquidators and The Kinetic Co., Inc. (“Kinetic”),
partially offset by decreased revenues in the other businesses. The
decrease in revenues is primarily due to reduced demand.
Operating income decreased to $5.0 million for the second
quarter of FY 2023, as compared to $8.4 million in the prior year
period. The decrease in operating income is attributable to lower
gross profit margins as a result of cost increases, increased
general and administrative expenses due to the acquisitions of
Flooring Liquidators and Kinetic as well as one-time
acquisition-related costs.
For the three months ended March 31, 2023, net income was $1.6
million and diluted EPS was $0.49 per diluted share, as compared
with net income of $15.4 million and diluted EPS was $4.84 per
diluted share in the prior year period. The decrease in net income
is attributable to lower operating income and increased interest
expense, which is primarily related to the incremental debt
incurred in the Flooring Liquidators and Kinetic acquisitions. In
addition, the prior year’s net income included a benefit of
approximately $11.4 million or $3.58 per diluted share for a gain
on bankruptcy settlement.
Second quarter FY 2023 adjusted EBITDA of $9.2 million decreased
approximately $1.1 million, or 10.4%, as compared to the prior year
period. The decrease is primarily due to decreases in gross profit
and operating income, as discussed above.
As of March 31, 2023, the Company had total cash availability of
$25.9 million, consisting of cash on hand of $4.2 million and cash
availability under its various lines of credit of $21.7
million.
Second Quarter FY 2023 Segment Results (in
thousands)
|
During the three months ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Revenues |
|
|
|
|
|
Retail - Entertainment |
$ |
19,188 |
|
|
$ |
20,741 |
|
|
-7.5% |
Retail - Flooring ² |
|
20,769 |
|
|
|
- |
|
|
N/A |
Flooring Manufacturing |
|
30,340 |
|
|
|
32,772 |
|
|
-7.4% |
Steel Manufacturing ³ |
|
19,916 |
|
|
|
14,027 |
|
|
42.0% |
Corporate & other |
|
909 |
|
|
|
2,166 |
|
|
-58.0% |
|
$ |
91,122 |
|
|
$ |
69,706 |
|
|
30.7% |
|
|
|
|
|
|
|
During the three months ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Operating Income
(loss) |
|
|
|
|
|
Retail - Entertainment |
$ |
2,327 |
|
|
$ |
3,132 |
|
|
-25.7% |
Retail - Flooring ² |
|
(216 |
) |
|
|
- |
|
|
N/A |
Flooring Manufacturing |
|
2,406 |
|
|
|
3,875 |
|
|
-37.9% |
Steel Manufacturing ³ |
|
2,814 |
|
|
|
2,719 |
|
|
3.5% |
Corporate & other |
|
(2,379 |
) |
|
|
(1,277 |
) |
|
N/A |
|
$ |
4,952 |
|
|
$ |
8,449 |
|
|
-41.4% |
|
|
|
|
|
|
|
During the three months ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Adjusted
EBITDA |
|
|
|
|
|
Retail - Entertainment |
$ |
2,652 |
|
|
$ |
3,610 |
|
|
-26.5% |
Retail - Flooring ² |
$ |
1,111 |
|
|
|
- |
|
|
N/A |
Flooring Manufacturing |
|
3,363 |
|
|
|
4,579 |
|
|
-26.6% |
Steel Manufacturing ³ |
|
3,670 |
|
|
|
2,828 |
|
|
29.8% |
Corporate & other |
|
(1,609 |
) |
|
|
(762 |
) |
|
N/A |
Total Adjusted EBITDA |
$ |
9,187 |
|
|
$ |
10,255 |
|
|
-10.4% |
|
|
|
|
|
|
Adjusted
EBITDA as a percentage of revenue |
|
|
|
|
Retail - Entertainment |
|
13.8% |
|
|
17.4% |
|
|
Retail - Flooring ² |
|
5.4% |
|
|
- |
|
|
|
Flooring Manufacturing |
|
11.1% |
|
|
14.0% |
|
|
Steel Manufacturing ³ |
|
18.4% |
|
|
20.2% |
|
|
Corporate & other |
|
N/A |
|
|
N/A |
|
|
Consolidated adjusted EBITDA |
|
10.1% |
|
|
14.7% |
|
|
as a percentage of revenue |
|
|
|
|
|
² includes Flooring Liquidators in FY 2023 results³ includes
Kinetic in FY 2023 results
Retail - Entertainment
Second quarter FY 2023 Retail Entertainment segment revenues of
$19.2 million decreased approximately $1.6 million, or 7.5%, as
compared to the prior year. Revenues decreased due to reduced
demand, and overall product mix. Second quarter cost of revenue as
a percentage of revenue was 44.5% for the second quarter, as
compared to 46.4% for the prior year period. Operating income for
the second quarter was approximately $2.3 million, as compared to
operating income of approximately $3.1 million for the prior year
period.
Retail - Flooring
The Retail Flooring segment consists of Flooring Liquidators,
which was acquired in January 2023. Second quarter FY 2023 Retail
Flooring Segment revenues were $20.8 million and cost of revenue as
a percentage of revenue was 62.7%. Operating loss for the three
months ended March 31, 2023 was approximately $0.2 million.
Flooring Manufacturing
Second quarter FY 2023 Flooring Manufacturing Segment revenues
of $30.3 million decreased by approximately $2.4 million, or 7.4%,
as compared to the prior year period, primarily due to reduced
customer demand. Second quarter cost of revenue as a percentage of
revenue was 75.8%, as compared to 73.8% for the prior year period.
Operating income for the second quarter was approximately $2.4
million, as compared to operating income of approximately $3.9
million for the prior year period.
Steel Manufacturing
Second quarter FY 2023 Steel Manufacturing Segment revenues of
$19.9 million increased by approximately $5.9 million, or 42.0%, as
compared to the prior year period, primarily due to the acquisition
of Kinetic. Second quarter cost of revenue as a percentage of
revenue was 71.6%, as compared to 69.7% in the prior year period.
Operating income for the three months ended March 31, 2023 was
approximately $2.8 million, as compared to operating income of
approximately $2.7 million in the prior period.
Corporate and Other
Second quarter FY 2023 Corporate and Other Segment revenues
decreased by $1.3 million, or 58.0%, primarily due to decreased
revenue for SW Financial. The decrease in revenue was primarily due
to weakness at SW Financial. Operating loss for the three months
ended March 31, 2023 was approximately $2.4 million, as compared to
a loss of approximately $1.3 million in the prior period.
Six Months FY 2023 Financial Summary (in thousands
except per share amounts)
|
During the six months ended March 31, |
|
|
2023 |
|
|
2022 |
|
% Change |
Revenues |
$ |
160,108 |
|
$ |
144,864 |
|
10.5% |
Operating Income |
$ |
9,519 |
|
$ |
18,856 |
|
-49.5% |
Net income |
$ |
3,402 |
|
$ |
21,904 |
|
-84.5% |
Diluted earnings per
share |
$ |
1.08 |
|
$ |
6.87 |
|
-84.3% |
Revenues increased approximately $15.2 million, or 10.5%, to
$160.1 million for the six months ended March 31, 2023, as compared
to the prior year period. The increase is primarily attributable to
the Flooring Liquidators and Kinetic acquisitions, partially offset
by decreased revenues in the other businesses. The decrease in
revenues is primarily due to reduced demand.
Operating income decreased to $9.5 million for the six months
ended March 31, 2023, as compared to $18.9 million in the prior
year period. The decrease in operating income is attributable to
lower gross profit margins as a result of inflationary cost
increases, increased general and administrative expenses due to the
acquisitions of Flooring Liquidators and Kinetic as well as
one-time acquisition-related costs.
For the six months ended March 31, 2023, net income was $3.4
million and diluted EPS was $1.08 per diluted share, as compared
with net income of $21.9 million and diluted EPS was $6.87 per
diluted share 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.
Adjusted EBITDA for the six months ended March 31, 2023 was
$16.7 million a decrease of approximately $5.6 million, or 25.2%,
as compared to the prior year period. The decrease is primarily due
to decreases in gross profit and operating income.
Six Months FY 2023 Segment Results (in
thousands)
|
During the six months ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Revenues |
|
|
|
|
|
Retail - Entertainment |
$ |
42,461 |
|
|
$ |
46,952 |
|
|
-9.6% |
Retail - Flooring ² |
|
20,769 |
|
|
|
- |
|
|
N/A |
Flooring Manufacturing |
|
56,772 |
|
|
|
65,644 |
|
|
-13.5% |
Steel Manufacturing ³ |
|
37,897 |
|
|
|
26,393 |
|
|
43.6% |
Corporate & other |
|
2,209 |
|
|
|
5,875 |
|
|
-62.4% |
|
$ |
160,108 |
|
|
$ |
144,864 |
|
|
10.5% |
|
|
|
|
|
|
|
During the six months ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Operating Income
(loss) |
|
|
|
|
|
Retail - Entertainment |
$ |
5,991 |
|
|
$ |
7,942 |
|
|
-24.6% |
Retail - Flooring ² |
|
(216 |
) |
|
|
- |
|
|
N/A |
Flooring Manufacturing |
|
3,158 |
|
|
|
8,483 |
|
|
-62.8% |
Steel Manufacturing ³ |
|
4,270 |
|
|
|
4,373 |
|
|
-2.4% |
Corporate & other |
|
(3,684 |
) |
|
|
(1,942 |
) |
|
N/A |
|
$ |
9,519 |
|
|
$ |
18,856 |
|
|
-49.5% |
|
|
|
|
|
|
|
During the six months ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Adjusted
EBITDA |
|
|
|
|
|
Retail - Entertainment |
$ |
6,656 |
|
|
$ |
8,813 |
|
|
-24.5% |
Retail - Flooring ² |
$ |
1,111 |
|
|
|
- |
|
|
N/A |
Flooring Manufacturing |
|
5,147 |
|
|
|
9,834 |
|
|
-47.7% |
Steel Manufacturing ³ |
|
6,195 |
|
|
|
4,672 |
|
|
32.6% |
Corporate & other |
|
(2,382 |
) |
|
|
(964 |
) |
|
N/A |
Total Adjusted EBITDA |
$ |
16,727 |
|
|
$ |
22,355 |
|
|
-25.2% |
|
|
|
|
|
|
Adjusted
EBITDA as a percentage of revenue |
|
|
|
|
Retail - Entertainment |
|
15.7% |
|
|
18.8% |
|
|
Retail - Flooring ² |
|
5.4% |
|
|
- |
|
|
|
Flooring Manufacturing |
|
9.1% |
|
|
15.0% |
|
|
Steel Manufacturing ³ |
|
16.3% |
|
|
17.7% |
|
|
Corporate & other |
|
N/A |
|
|
N/A |
|
|
Consolidated adjusted
EBITDA |
|
10.4% |
|
|
15.4% |
|
|
as a percentage of
revenue |
|
|
|
|
|
² includes Flooring Liquidators in FY 2023 results³ includes
Kinetic in FY 2023 results
Retail - Entertainment
Retail Entertainment segment revenues for the six months ended
March 31, 2023 decreased approximately $4.5 million, or 9.6%, as
compared to the prior year. Revenues decreased due to reduced
demand, and overall product mix. Cost of revenue as a percentage of
revenue was 46.2% for the six months ended March 31, 2023, as
compared to 47.8% in the prior year period. Operating income for
the six months ended March 31, 2023 was approximately $6.0 million,
as compared to operating income of approximately $7.9 million for
the prior year period.
Retail - Flooring
Retail Flooring segment revenues for the six months ended March
31, 2023 were $20.8 million and cost of revenue as a percentage of
revenue was 62.7%. Operating loss for the six months ended March
31, 2023 was $0.2 million.
Flooring Manufacturing
Revenues for the six months ended March 31, 2023 decreased by
approximately $8.9 million, or 13.5%, as compared to the prior year
period, primarily due to reduced customer demand as a result of
inflationary factors. Cost of revenue as a percentage of revenue
was 78.9% for the six months ended March 31, 2023, as compared to
73.2% for the prior year period. Operating income for the six
months ended March 31, 2023 was approximately $3.2 million, as
compared to operating income of approximately $8.5 million for the
prior year period.
Steel Manufacturing
Revenues for the six months ended March 31, 2023 increased by
$11.5 million, or 43.6%, as compared to the prior year period,
primarily due to the acquisition of Kinetic. Cost of revenue as a
percentage of revenue was 73.5% for the six months ended March 31,
2023, as compared to 70.2% for the prior year period. Operating
income for the six months ended March 31, 2023 was approximately
$4.3 million, as compared to operating income of approximately $4.4
in the prior period.
Corporate and Other
Revenues for the six months ended March 31, 2023 decreased by
$3.7 million primarily due to decreased revenue for SW Financial.
The decrease in revenue was primarily due to weakness at SW
Financial. Operating loss for the six months ended March 31, 2023
was approximately $3.7 million, as compared to a loss of
approximately $1.9 million in the prior period.
Non-GAAP Financial Information
Adjusted EBITDA
We evaluate the performance of our operations based on financial
measures, such as revenues 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 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. 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.
Forward-Looking and Cautionary Statements
The use of the word “company” or “Company” refers to Live
Ventures Incorporated 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 future
investments, deployment of capital, growth, 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
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, entertainment, and financial services industries.
About Live Ventures 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 70 retail
stores and its website, allowing the company to ship products
worldwide directly to the customer’s doorstep.
Flooring Liquidators
Based in Modesto, CA, and acquired by Live Ventures in January
2023, Flooring Liquidators is a leading provider of floors,
cabinets, countertops, and installation services in California and
Nevada, operating 20 warehouse-format stores and a design center.
Flooring Liquidators has established a strong reputation for
innovation, efficiency, and service in the home renovation and
improvement market. Flooring Liquidators serves retail and builder
customers through three businesses: retail customers through its
Flooring Liquidators retail stores, builder and contractor
customers through Elite Builder Services, Inc., and residential and
business customers through 7 Day Stone, Inc.
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. In
June 2022, Precision Marshall acquired The Kinetic Co., Inc. a
highly regarded brand name in the production of industrial knives
and hardened wear products.
Salomon Whitney
Based in Melville, NY, and acquired by Live Ventures in June
2021, SW Financial 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. SW Financial has over 70 registered representatives and
is licensed to operate in all 50 states. As of March 31, 2023, Live
Ventures owns a 24.9% interest in SW Financial. However, SW
Financial 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(UNAUDITED)(dollars in
thousands, except per share
amounts) |
|
March 31, 2023 |
|
|
September 30, 2022 |
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
Cash |
$ |
4,168 |
|
|
$ |
4,600 |
|
Trade receivables, net of
allowance for doubtful accounts of $482,000 at March 31, 2023 and
$132,000 at September 30, 2022 |
|
29,703 |
|
|
|
25,665 |
|
Inventories, net of reserves of
$2.6 million at March 31, 2023 and $2.4 million at September 30,
2022 |
|
115,050 |
|
|
|
97,659 |
|
Income taxes receivable |
|
4,237 |
|
|
|
4,403 |
|
Prepaid expenses and other
current assets |
|
2,748 |
|
|
|
2,477 |
|
Total current assets |
|
155,906 |
|
|
|
134,804 |
|
Property and equipment, net of
accumulated depreciation of $31.7 million at March 31, 2023, and
$26.7 million at September 30, 2022 |
|
67,098 |
|
|
|
64,590 |
|
Right of use asset - operating
leases |
|
45,504 |
|
|
|
33,659 |
|
Right of use asset - finance
leases |
|
387 |
|
|
|
— |
|
Deposits and other assets |
|
1,741 |
|
|
|
647 |
|
Intangible assets, net of
accumulated amortization of $3.4 million at March 31, 2023 and $2.1
million at September 30, 2022 |
|
25,249 |
|
|
|
3,844 |
|
Goodwill |
|
69,506 |
|
|
|
41,093 |
|
Total assets |
$ |
365,391 |
|
|
$ |
278,637 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Accounts payable |
$ |
12,420 |
|
|
$ |
10,899 |
|
Accrued liabilities |
|
21,465 |
|
|
|
16,486 |
|
Current portion of lease obligations - operating leases |
|
10,688 |
|
|
|
7,851 |
|
Current portion of lease obligations - finance leases |
|
341 |
|
|
|
217 |
|
Current portion of long-term debt |
|
30,288 |
|
|
|
18,935 |
|
Current portion of notes payable related parties |
|
— |
|
|
|
2,000 |
|
Total current liabilities |
|
75,202 |
|
|
|
56,388 |
|
Long-term debt, net of current
portion |
|
67,530 |
|
|
|
59,704 |
|
Lease obligation long term -
operating leases |
|
39,611 |
|
|
|
30,382 |
|
Lease obligation long term -
finance leases |
|
19,930 |
|
|
|
19,568 |
|
Notes payable related parties,
net of current portion |
|
45,675 |
|
|
|
5,000 |
|
Deferred taxes |
|
12,986 |
|
|
|
8,818 |
|
Other non-current
obligations |
|
1,222 |
|
|
|
1,615 |
|
Total liabilities |
|
262,156 |
|
|
|
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 March
31, 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,
3,165,890 and 3,074,833 shares issued and outstanding at March 31,
2023 and September 30, 2022, respectively |
|
2 |
|
|
|
2 |
|
Paid in capital |
|
68,630 |
|
|
|
65,321 |
|
Treasury stock common 646,355 and 620,971 shares as of March 31,
2023 and September 30, 2022, respectively |
|
(7,853 |
) |
|
|
(7,215 |
) |
Treasury stock Series E preferred 80,000 shares as of March 31,
2023 and of September 30, 2022, respectively |
|
(7 |
) |
|
|
(7 |
) |
Retained earnings |
|
42,911 |
|
|
|
39,509 |
|
Equity attributable to Live stockholders |
|
103,683 |
|
|
|
97,610 |
|
Non-controlling interest |
|
(448 |
) |
|
|
(448 |
) |
Total stockholders' equity |
|
103,235 |
|
|
|
97,162 |
|
Total liabilities and stockholders' equity |
$ |
365,391 |
|
|
$ |
278,637 |
|
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, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenues |
$ |
91,122 |
|
|
$ |
69,706 |
|
|
$ |
160,108 |
|
|
$ |
144,864 |
|
Cost of revenues |
|
59,514 |
|
|
|
44,753 |
|
|
|
106,556 |
|
|
|
92,295 |
|
Gross profit |
|
31,608 |
|
|
|
24,953 |
|
|
|
53,552 |
|
|
|
52,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
22,617 |
|
|
|
13,154 |
|
|
|
37,217 |
|
|
|
27,311 |
|
Sales and marketing expenses |
|
4,039 |
|
|
|
3,350 |
|
|
|
6,816 |
|
|
|
6,402 |
|
Total operating expenses |
|
26,656 |
|
|
|
16,504 |
|
|
|
44,033 |
|
|
|
33,713 |
|
Operating income |
|
4,952 |
|
|
|
8,449 |
|
|
|
9,519 |
|
|
|
18,856 |
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(3,235 |
) |
|
|
(858 |
) |
|
|
(5,282 |
) |
|
|
(1,875 |
) |
Loss on debt extinguishment |
|
— |
|
|
|
(363 |
) |
|
|
— |
|
|
|
(363 |
) |
Gain on disposal of fixed assets |
|
7 |
|
|
|
(1 |
) |
|
|
7 |
|
|
|
(1 |
) |
Gain on bankruptcy settlement |
|
— |
|
|
|
11,362 |
|
|
|
— |
|
|
|
11,352 |
|
Other income (expense) |
|
384 |
|
|
|
292 |
|
|
|
323 |
|
|
|
418 |
|
Total other expense, net |
|
(2,844 |
) |
|
|
10,432 |
|
|
|
(4,952 |
) |
|
|
9,531 |
|
Income before provision for
income taxes |
|
2,108 |
|
|
|
18,881 |
|
|
|
4,567 |
|
|
|
28,387 |
|
Provision for income taxes |
|
550 |
|
|
|
3,523 |
|
|
|
1,165 |
|
|
|
6,483 |
|
Net income |
|
1,558 |
|
|
|
15,358 |
|
|
|
3,402 |
|
|
|
21,904 |
|
Net income attributable to
non-controlling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income attributable to Live
stockholders |
$ |
1,558 |
|
|
$ |
15,358 |
|
|
$ |
3,402 |
|
|
$ |
21,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.50 |
|
|
$ |
4.90 |
|
|
$ |
1.10 |
|
|
$ |
6.96 |
|
Diluted |
$ |
0.49 |
|
|
$ |
4.84 |
|
|
$ |
1.08 |
|
|
$ |
6.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
3,143,911 |
|
|
|
3,134,540 |
|
|
|
3,101,007 |
|
|
|
3,148,059 |
|
Diluted |
|
3,184,982 |
|
|
|
3,172,881 |
|
|
|
3,137,625 |
|
|
|
3,187,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared - series B
convertible preferred stock |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Dividends declared - series E
convertible preferred stock |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Dividends declared - common
stock |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
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 Six Months Ended |
|
|
March 31, 2023 |
|
|
March 31, 2022 |
|
|
March 31, 2023 |
|
|
March 31, 2022 |
|
Net income |
$ |
1,558 |
|
|
$ |
15,358 |
|
|
$ |
3,402 |
|
|
$ |
21,904 |
|
Depreciation and
amortization |
|
3,647 |
|
|
|
1,496 |
|
|
|
6,298 |
|
|
|
3,045 |
|
Stock-based compensation |
|
109 |
|
|
|
19 |
|
|
|
109 |
|
|
|
37 |
|
Interest expense, net |
|
3,235 |
|
|
|
858 |
|
|
|
5,282 |
|
|
|
1,875 |
|
Income tax expense |
|
550 |
|
|
|
3,523 |
|
|
|
1,165 |
|
|
|
6,483 |
|
Gain on bankruptcy
settlement |
|
— |
|
|
|
(11,362 |
) |
|
|
— |
|
|
|
(11,352 |
) |
Loss on extinguishment of
debt |
|
— |
|
|
|
363 |
|
|
|
— |
|
|
|
363 |
|
SW Financial settlement gain |
|
(1,000 |
) |
|
|
— |
|
|
|
(1,000 |
) |
|
|
— |
|
Non-recurring costs for
acquisitions |
|
1,088 |
|
|
|
— |
|
|
|
1,471 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
9,187 |
|
|
$ |
10,255 |
|
|
$ |
16,727 |
|
|
$ |
22,355 |
|
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