Financial Data and Key Metrics Changes - Total revenue for Q2 2025 decreased by $9.8 million to approximately $107 million, primarily due to declines in retail flooring, flooring manufacturing, and steel manufacturing segments [6][7] - Net income for the quarter was approximately $15.9 million, with diluted EPS of $5.5, compared to a net loss of approximately $3.3 million and a loss per share of $1.04 in the prior year period [9] - Adjusted EBITDA for the quarter increased by approximately $2 million to around $6.4 million, driven by the acquisition of Central Steel and cost reduction initiatives [9] Business Line Data and Key Metrics Changes - Retail entertainment segment revenue increased by $1.6 million or 9.6% to approximately $18.5 million, attributed to higher consumer demand for new products [6] - Retail flooring segment revenue decreased by $4.6 million or 14.5% to approximately $27.4 million, mainly due to the disposition of certain stores [7] - Flooring manufacturing segment revenue decreased by $4.4 million or 12.8% to approximately $29.8 million, driven by reduced consumer demand [7] - Steel manufacturing segment revenue decreased by $4.2 million or 11.7% to approximately $31.3 million, impacted by lower sales volumes, partially offset by revenue from Central Steel [7] Market Data and Key Metrics Changes - The company faced challenges in the flooring business due to ongoing softness in new home construction and home refurbishment markets, as well as economic uncertainty [5] - The retail flooring and flooring manufacturing segments were particularly affected by reduced consumer demand [10] Company Strategy and Development Direction - The company is focusing on operational excellence and has implemented targeted cost reduction initiatives in the flooring retail segments [10] - A new executive management team has been brought in to enhance performance through top-line growth and operational efficiency in the retail flooring segment [5] - The company is considering share repurchases as part of its capital allocation strategy, believing it represents long-term value for shareholders [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the business despite current market challenges [10] - The company is actively monitoring potential impacts from tariffs and is diversifying vendor relationships to mitigate risks [17][20] Other Important Information - The company successfully negotiated a $19 million reduction in flooring liquidators seller notes, resulting in a $22.8 million gain [5][8] - Total cash availability at the end of the quarter was $26.6 million, with working capital of approximately $49.1 million [9] Q&A Session Summary Question: Was the modification of the note anticipated in the original agreement? - Management clarified that the modification was not anticipated in the original agreement and was a new renegotiation [15][16] Question: How might tariffs affect the business? - Management stated that there have been no negative impacts from tariffs to date and that they are diversifying vendor relationships to prepare for potential changes [17][20]

Financial Performance - Revenue for the three months ended March 31, 2025, was $107,013,000, a decrease of 9.5% compared to $118,626,000 for the same period in 2024[147] - Gross profit for the three months ended March 31, 2025, was $35,148,000, representing 32.8% of total revenue, compared to $35,467,000 or 29.9% in 2024[147] - Net income for the three months ended March 31, 2025, was $15,866,000, compared to a net loss of $3,281,000 in the same period of 2024[147] - Total revenue for the three months ended March 31, 2025, was approximately $107.0 million, a decrease of $11.6 million or 9.8% compared to $118.6 million in the prior year period[149] - For the six months ended March 31, 2025, total revenue was $218.5 million, a decrease of $17.7 million or 7.5% compared to $236.2 million in the prior year[157] - Net income for the six months ended March 31, 2025, was $16.4 million, compared to a net loss of $4.0 million in the prior year[154] Segment Performance - The Steel Manufacturing segment reported Adjusted EBITDA of $3,742,000, up from $2,331,000 in the prior year, reflecting a significant improvement[147] - The Retail-Flooring segment reported an Adjusted EBITDA loss of $(1,778,000), slightly improved from a loss of $(1,849,000) in 2024[147] - Retail-Entertainment segment revenue increased by approximately $1.6 million or 9.6% to $18.5 million for the quarter ended March 31, 2025, driven by higher consumer demand for new products[164] - Retail-Flooring segment revenue for Q1 2025 was approximately $27.4 million, a decrease of 14.5% from $32.0 million in Q1 2024[165] - Flooring Manufacturing segment revenue for Q1 2025 was approximately $29.8 million, a decrease of 12.8% from $34.2 million in Q1 2024[166] - Steel Manufacturing segment revenue for Q1 2025 was approximately $31.3 million, a decrease of 11.7% from $35.5 million in Q1 2024[167] - Retail-Entertainment segment revenue for the six months ended March 31, 2025 was approximately $39.7 million, an increase of 6.2% from $37.4 million in the prior year[171] - Retail-Flooring segment revenue for the six months ended March 31, 2025 was approximately $59.1 million, a decrease of 10.9% from $66.4 million in the prior year[172] - Flooring Manufacturing segment revenue for the six months ended March 31, 2025 was approximately $55.8 million, a decrease of 12.0% from $63.4 million in the prior year[173] - Steel Manufacturing segment revenue for the six months ended March 31, 2025 was approximately $63.8 million, a decrease of 7.4% from $68.8 million in the prior year[174] Adjusted EBITDA - Total Adjusted EBITDA for the three months ended March 31, 2025, was $6,446,000, an increase of 44.7% from $4,457,000 in 2024[147] - Adjusted EBITDA as a percentage of revenue for the consolidated company was 6.0% for the three months ended March 31, 2025, compared to 3.8% in 2024[147] - Adjusted EBITDA for Q1 2025 was approximately $6.4 million, an increase of 44.6% from $4.5 million in Q1 2024[176] Expenses and Cash Flow - General and Administrative expenses decreased by 5% to approximately $28.3 million for the three months ended March 31, 2025, compared to the same period in 2024[151] - Sales and marketing expenses decreased by 27% to approximately $4.7 million for the three months ended March 31, 2025, due to reduced activities at Flooring Liquidators[152] - Interest expense, net, decreased by approximately 5.6% to $3.9 million for the three months ended March 31, 2025, due to lower average debt balances[153] - Cash flows used in financing activities for the six months ended March 31, 2025, were approximately $3.0 million, including payments on notes payable of approximately $3.4 million and finance leases of approximately $2.0 million[184] - For the six months ended March 31, 2024, cash flows used in financing activities were also approximately $3.0 million, with net borrowings under revolver loans amounting to approximately $7.7 million[185] Company Strategy and Investments - The company continues to seek acquisition opportunities to enhance synergies within its diversified business model[127] - The company has made recent investments in additional capacity for its Flooring Manufacturing segment to support growth in attractive product lines[134] - The acquisition of Central Steel in May 2024 contributed to improved margins in the Steel Manufacturing segment[150] - The company is not currently issuing common shares for liquidity purposes, preferring asset-based lending and mezzanine financing for acquisitions[186] - Future financing needs may include additional debt financing or capital for new acquisitions and refinancing existing debt, which could dilute existing stockholders' ownership[187] Risk Management - As of March 31, 2025, the company did not participate in any market risk-sensitive commodity instruments and believes it is not materially exposed to foreign currency exchange risk or commodity price risk[188] Working Capital - Total cash on hand as of March 31, 2025 was approximately $6.9 million, with $19.7 million available under revolving credit facilities[178] - Working capital as of March 31, 2025 was approximately $49.1 million, a decrease of $3.2 million from $52.3 million as of September 30, 2024[180]

Core Insights - Live Ventures Incorporated reported financial results for the fiscal second quarter of 2025, showing a mixed performance across its segments, with notable improvements in Retail-Entertainment and Steel Manufacturing, while Retail-Flooring and Flooring Manufacturing faced challenges due to reduced consumer demand [1][3][4]. Financial Performance - Revenue for the second quarter decreased by approximately $11.6 million, or 9.8%, to $107.0 million compared to $118.6 million in the prior year [6][8]. - Operating income increased by approximately $2.9 million to $2.1 million, compared to an operating loss of $0.8 million in the prior year [7][8]. - Net income for the quarter was $15.9 million, a significant improvement from a net loss of $3.3 million in the prior year [8][39]. - Adjusted EBITDA rose by approximately $2.0 million, or 44.6%, to $6.4 million compared to $4.5 million in the prior year [10][39]. Segment Performance - **Retail-Entertainment**: Revenue increased by approximately $1.6 million, or 9.6%, to $18.5 million, driven by a favorable product mix [13]. - **Retail-Flooring**: Revenue decreased by approximately $4.6 million, or 14.5%, to $27.4 million, primarily due to the closure of certain stores [14]. - **Flooring Manufacturing**: Revenue decreased by approximately $4.4 million, or 12.8%, to $29.8 million, attributed to reduced consumer demand [15]. - **Steel Manufacturing**: Revenue decreased by approximately $4.2 million, or 11.7%, to $31.3 million, with a notable increase in gross margin to 21.2% [16]. Balance Sheet and Cash Position - As of March 31, 2025, total assets were $393.6 million, with stockholders' equity of $88.9 million [11][36]. - The company had approximately $26.6 million in cash and availability under credit facilities [11][39]. Six-Month Performance Summary - For the six months ended March 31, 2025, revenue decreased by approximately $17.7 million, or 7.5%, to $218.5 million [19]. - Operating income increased by approximately 5.6% to $2.9 million compared to the prior year [20]. - Adjusted EBITDA for the six months was approximately $12.2 million, a decrease of 7.3% compared to the prior year [22].

Company Overview - Live Ventures Incorporated is a diversified holding company focused on value-oriented acquisitions of domestic middle-market companies [2] - The company's acquisition strategy is sector agnostic, targeting well-run, closely held businesses with a proven track record of earnings growth and cash flow generation [2] - Live Ventures aims to partner with management teams of acquired businesses to enhance stockholder value through a disciplined buy-build-hold long-term strategy [2] - Founded in 1968, the company was refocused into a diversified holding company in late 2011 under the leadership of CEO Jon Isaac [2] - The current portfolio includes subsidiaries in the textile, flooring, tools, steel, and entertainment industries [2] Upcoming Financial Results - Live Ventures will release its financial results for the fiscal second quarter ended March 31, 2025, before the market opens on May 8, 2025 [1] - A conference call to discuss the results is scheduled for May 8, 2025, at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) [1] - Interested parties are encouraged to dial in at least 15 minutes in advance to ensure connection [1]

Core Viewpoint - Live Energy Minerals Corp. has entered into an option agreement allowing a purchaser to acquire a 100% interest in two mineral claims totaling approximately 5,355 hectares in Saskatchewan [1][2]. Group 1: Option Agreement Details - The purchaser must issue 5,500,000 common shares to the company within five days of TSX Venture Exchange approval and pay $50,000 in cash within three years of the agreement's effective date [2]. - The company has granted the purchaser the right to buy back a 3% net smelter return royalty by issuing an additional 5,500,000 shares to the royalty holder, subject to TSXV acceptance [3]. Group 2: Company Overview - Live Energy Minerals Corp. is focused on exploring clean energy minerals in North and South America, holding interests in uranium, vanadium, and molybdenum projects in the Colorado Plateau, USA, and the McDermitt Lithium East Project in Nevada [4]. - The company aims to create shareholder value through quality projects and proven exploration strategies [4].

Company Overview - Live Ventures Incorporated is a diversified holding company focused on value-oriented acquisitions of domestic middle-market companies [4] - The company's acquisition strategy is sector-agnostic, targeting well-run, closely held businesses with a proven track record of earnings growth and cash flow generation [4] - Live Ventures was founded in 1968 and has a portfolio that includes companies in the textile, flooring, tools, steel, and entertainment industries [4] Recent Developments - Jon Isaac, President and CEO of Live Ventures, acquired 55,796 shares of the company's common stock in open market transactions valued at approximately $385,000 [1][2] - The share purchases occurred on March 25, 26, and 27, 2025, and were reported in a Form 4 filed with the Securities and Exchange Commission [2]

Core Viewpoint - Live Ventures Incorporated's President and CEO, Jon Isaac, has purchased 55,796 shares of the company's common stock for approximately $385,000, reflecting his confidence in the company's long-term value creation for shareholders [1][2]. Company Overview - Live Ventures is a diversified holding company focused on value-oriented acquisitions of domestic middle-market companies, employing a sector-agnostic acquisition strategy [4]. - The company seeks well-run, closely held businesses with a proven track record of earnings growth and cash flow generation, aiming to partner with management teams to enhance shareholder value through a disciplined buy-build-hold strategy [4]. - Founded in 1968, Live Ventures was refocused into a diversified holding company in 2011 under the leadership of Jon Isaac, who joined the Board of Directors [4]. - The current portfolio includes subsidiaries in various industries such as textiles, flooring, tools, steel, and entertainment [4].

Revenue Performance - Revenue for the first quarter of fiscal 2025 was $111.5 million, a decrease of 5.2% from $117.6 million in the prior year period[5]. - Total revenue for the three months ended December 31, 2024, was $111.5 million, a decrease of 5.8% from $117.6 million in the same period of 2023[31]. Income and Profitability - Operating income fell to $0.8 million, down 78.5% from $3.5 million in the prior year period, primarily due to decreased revenue and increased expenses[8]. - Net income for the quarter was $0.5 million, compared to a net loss of $0.7 million in the prior year, driven by a $2.8 million gain from the settlement of earnout liabilities related to the PMW acquisition[9]. - Gross profit for the same period was $35.4 million, down from $36.3 million, resulting in a gross margin of 31.7%[31]. - Operating income decreased significantly to $762,000 from $3.5 million year-over-year[31]. - Net income for the quarter was $492,000, compared to a net loss of $682,000 in the prior year[31]. - Adjusted EBITDA was $5.7 million, a decrease of 33.9% from $8.7 million in the prior year period, reflecting overall reduced operating income[10]. - Adjusted EBITDA for the three months ended December 31, 2024, was $5.7 million, down from $8.7 million in the same period of 2023[33]. - The company reported a basic income per share of $0.16, compared to a loss per share of $0.22 in the previous year[31]. Segment Performance - Retail-Entertainment segment revenue increased by 3.3% to $21.3 million, while Retail-Flooring revenue decreased by 7.5% to $31.7 million due to reduced demand[15][16]. - Steel Manufacturing revenue decreased by 2.8% to $32.4 million, partially offset by $3.1 million in incremental revenue from the acquisition of Central Steel[19]. - The Retail-Flooring segment reported an operating loss of approximately $2.2 million, compared to a small operating income in the prior year, due to increased wages and administrative costs[16]. Assets and Liabilities - Total assets as of December 31, 2024, were $395.5 million, with stockholders' equity at $73.3 million[5]. - Total current assets decreased to $172.4 million from $181.9 million, primarily due to a reduction in trade receivables[27]. - Total liabilities decreased to $322.2 million from $334.7 million, reflecting a reduction in current liabilities[27]. - Cash increased to $7.4 million from $4.6 million, indicating improved liquidity[27]. - Retained earnings increased to $12.8 million from $12.3 million, showing positive growth in accumulated profits[28]. Operational Efficiency - Live Ventures is implementing measures to enhance efficiency in its flooring businesses to address industry-specific challenges[4].

Financial Performance - Revenue for the three months ended December 31, 2024, was $111,508,000, a decrease of 5.8% compared to $117,593,000 for the same period in 2023[151] - Gross profit for the same period was $35,362,000, representing 31.7% of total revenue, compared to $36,327,000 or 30.9% in 2023[151] - Net income for the three months ended December 31, 2024, was $492,000, compared to a net loss of $682,000 in 2023[151] - Total Adjusted EBITDA for the three months ended December 31, 2024, was $5,744,000, down from $8,696,000 in 2023[151] - The consolidated adjusted EBITDA as a percentage of revenue decreased to 5.2% from 7.4% in 2023[151] - Adjusted EBITDA decreased by approximately $3.0 million or 33.9% to $5.7 million for the three months ended December 31, 2024, compared to $8.7 million in the prior year[165] Segment Performance - The Retail-Entertainment segment reported Adjusted EBITDA of $3,810,000, while the Retail-Flooring segment had a loss of $971,000[151] - Steel Manufacturing segment's Adjusted EBITDA remained stable at $2,801,000, consistent with the previous year[151] - Retail-Entertainment segment revenue increased by approximately $0.7 million or 3.3% to $21.3 million for the quarter ended December 31, 2024, driven by increased consumer demand for used products[160] - Retail-Flooring segment revenue decreased by approximately $2.6 million or 7.5% to $31.7 million for the quarter ended December 31, 2024, primarily due to reduced demand[161] - Flooring Manufacturing segment revenue decreased by approximately $3.2 million or 11.1% to $26.0 million for the quarter ended December 31, 2024, attributed to reduced consumer demand[162] - Steel Manufacturing segment revenue decreased by approximately $0.9 million or 2.8% to $32.4 million for the quarter ended December 31, 2024, partially offset by revenue from the acquisition of Central Steel[163] Expenses - General and administrative expenses increased to $30,071,000, representing 27.0% of total revenue, compared to 23.5% in 2023[151] - General and Administrative expenses rose by 8.6% to approximately $30.1 million for the three months ended December 31, 2024, mainly due to increased compensation expenses related to new store openings[155] - Sales and marketing expenses decreased by 11.3% to approximately $4.5 million for the three months ended December 31, 2024, due to reduced activities at Flooring Liquidators[156] - Interest expense for the quarter was $4,162,000, slightly up from $4,163,000 in the same period last year[151] Cash Flow and Financing - As of December 31, 2024, the company had total cash on hand of approximately $7.4 million and $23.7 million available under revolving credit facilities[166] - Cash flows used in investing activities were approximately $1.8 million for the three months ended December 31, 2024, compared to $3.2 million for the same period in 2023[172][174] - Cash flows used in financing activities amounted to approximately $4.8 million for the three months ended December 31, 2024, compared to $3.4 million for the same period in 2023[173][174] - The company utilized net borrowings under revolver loans of approximately $3.1 million during the financing activities for the three months ended December 31, 2024[173] Internal Controls and Compliance - As of December 31, 2024, the company assessed its internal controls over financial reporting as ineffective due to a material weakness identified in the financial reporting and consolidation process[182] - The company plans to improve control policies and procedures over financial reporting and consolidation processes, expecting to conclude these initiatives during the fiscal year ended September 30, 2025[182] - There were no changes in internal control over financial reporting during the three months ended December 31, 2024, that materially affected the controls[184] - The company does not expect its disclosure controls and procedures to prevent or detect all errors and fraud due to inherent limitations[181] Strategic Outlook - The company continues to focus on acquiring profitable and well-managed companies to enhance operational synergies across its segments[130] - The company may require additional debt financing or capital for new acquisitions, refinancing existing debt, or other strategic investments[176] - The company has historically preferred asset-based lending arrangements and mezzanine financing for acquisitions[175] - As of December 31, 2024, the company did not participate in any market risk-sensitive commodity instruments[177]

Live Ventures Incorporated (NASDAQ:LIVE) Q1 2025 Earnings Conference Call February 5, 2025 5:00 PM ET Company Participants Greg Powell - Director, IR David Verret - CFO Conference Call Participants Joseph Kowalsky - JD Investments Operator Welcome to the Live Ventures FY 2025 First Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Greg Powell, Director of Investor Relations. Please go ahead, sir. Greg Powell Thank you, Jen. Good afternoon, and welcome to the ...