Live Ventures Reports Fiscal Third Quarter 2023 Financial Results
- Revenues increased by 34.1% to $91.5 million, driven by acquisitions of Flooring Liquidators and The Kinetic Co.
- Adjusted EBITDA rose by 8.3% to $9.6 million, showcasing the company's ability to navigate through market challenges
- Acquisition of Precision Metal Works for $28 million adds approximately $75 million of revenue per year, aligning with the company's long-term strategy
- Steady progress with recent acquisitions, bolstering capabilities and product offerings, demonstrating dedication to generating long-term value for stockholders
- None.
LAS VEGAS, Aug. 10, 2023 (GLOBE NEWSWIRE) -- 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 of34.1% 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 of8.3% 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
“Amidst challenging economic headwinds during the quarter, revenue increased
“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
Operating income decreased
For the three months ended June 30, 2023, net income was
Third quarter FY 2023 Adjusted EBITDA of
As of June 30, 2023, the Company had total cash availability of
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 results
³ includes Kinetic in FY 2023 results
Retail - Entertainment
Third quarter FY 2023 Retail Entertainment segment revenues of
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
Flooring Manufacturing
Third quarter FY 2023 Flooring Manufacturing Segment revenues of
Steel Manufacturing
Third quarter FY 2023 Steel Manufacturing Segment revenues of
Corporate and Other
Third quarter FY 2023 Corporate and Other Segment revenues decreased by
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
Operating income decreased to
For the nine months ended June 30, 2023, net income was
Adjusted EBITDA for the nine months ended June 30, 2023 was
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 results
³ includes Kinetic in FY 2023 results
Retail - Entertainment
Retail Entertainment segment revenues for the nine months ended June 30, 2023 were approximately
Retail - Flooring
Retail Flooring segment revenues for the nine months ended June 30, 2023 were
Flooring Manufacturing
Revenues for the nine months ended June 30, 2023 were approximately
Steel Manufacturing
Revenues for the nine months ended June 30, 2023 increased by
Corporate and Other
Revenues for the nine months ended June 30, 2023 decreased by
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 Incorporated
Greg Powell, Director of Investor Relations
725.500.5597
gpowell@liveventures.com
www.liveventures.com
Source: Live Ventures Incorporated
LIVE VENTURES INCORPORATED CONSOLIDATED 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 | 27,358 | 25,665 | |||
Inventories, net of reserves of | 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 | 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 | 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, | — | — | |||
Common stock, | 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, INCORPORATED CONSOLIDATED 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 INCORPORATED NON-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 |
FAQ
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