Live Ventures Announces New $10 Million Common Stock Repurchase Program
Live Ventures has announced a new $10 million common stock repurchase program, which replaces the previous one that expired on June 1, 2024. The program will remain in effect until May 31, 2025, unless the Board of Directors decides otherwise. Under the program, shares can be repurchased at management's discretion through various methods including open market transactions and privately negotiated deals. CEO Jon Isaac stated that the program reflects confidence in the company's long-term growth and a commitment to stockholder value. Live Ventures, a diversified holding company, focuses on acquiring domestic middle-market companies with strong earnings and cash flow. Their portfolio spans textiles, flooring, tools, steel, and entertainment industries.
- New $10 million stock repurchase program indicates confidence in long-term growth.
- Program allows flexibility with share repurchases through multiple transaction types.
- Commitment to delivering value to stockholders reinforced.
- Company's acquisition strategy focuses on profitable middle-market businesses.
- Diverse portfolio in various industries: textiles, flooring, tools, steel, and entertainment.
- Previous stock repurchase program expired on June 1, 2024.
- The new program's success depends on effective management discretion.
- Potential fluctuation in stock price due to repurchase activities.
Insights
The announcement of a $10 million stock repurchase program by Live Ventures can be seen as a positive sign for investors. Stock buybacks often indicate that the company believes its shares are undervalued and that it has sufficient cash flow to support such an investment. This action may lead to a reduction in the number of outstanding shares, potentially increasing
For investors, it is important to consider the relative size of the buyback. Live Ventures' market capitalization should provide context for the impact of a $10 million repurchase. If the market cap is relatively low, this buyback could be more significant. Additionally, understanding how the buyback will be financed (e.g., through existing cash reserves or debt) is important to assess any potential risks to the company's financial health.
Overall, this program might signal management's confidence in long-term growth and commitment to returning value to shareholders, aligning with Live Ventures' historical strategy of disciplined growth and value orientation.
From a market research perspective, the repurchase program reflects a strategic move by Live Ventures to influence its stock price positively. Open market and negotiated transactions allow flexibility, ensuring the company can act opportunistically based on market conditions. However, there’s always a risk that the buyback could signal to the market that the company lacks better investment opportunities for its cash, suggesting limited growth prospects outside of share repurchases.
Investors should also consider the sector agnostic acquisition strategy of Live Ventures. The diversification across various sectors could mitigate risks associated with single-industry downturns. However, it can also mean the company is juggling multiple business models, each with unique challenges and opportunities. Understanding the performance and strategic alignment of these diversified businesses is critical for evaluating the long-term impact of the buyback program.
This move could also be a method for the company to manage its share price volatility, potentially increasing investor confidence and attracting new investors who view the buyback as a signal of inherent value in the company’s diversified portfolio.
LAS VEGAS, June 07, 2024 (GLOBE NEWSWIRE) -- Live Ventures Incorporated (Nasdaq: LIVE), a diversified holding company (“Live Ventures” or “Company”), today announced that its Board of Directors approved a new stock repurchase program authorizing the Company to repurchase up to
“Establishing a new repurchase program underscores our confidence in the long-term growth prospects of Live Ventures and our commitment to delivering value to our stockholders,” commented Jon Issac, President and Chief Executive Officer of Live Ventures.
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 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.
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 within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, that are intended to be covered by the “safe harbor” created by those sections. Words such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and similar statements are intended to identify forward-looking statements. Live Ventures may also make 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, 2023. Additionally, new risk factors emerge from time to time, and it is not possible for us to predict all such risk factors, or to assess the impact such risk factors might have on our business. Live Ventures undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
Contact:
Live Ventures Incorporated
Greg Powell, Director of Investor Relations
725.500.5597
gpowell@liveventures.com
www.liveventures.com
Source: Live Ventures Incorporated
FAQ
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