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Live Ventures Inc (LIVE) Q3 2024 Earnings Call Highlights: Revenue Surge Amidst Rising Costs

In This Article:

  • Total Revenue: Increased 35.4% to approximately $123.9 million.

  • Retail-Flooring Revenue: Approximately $37 million, an increase of 34.7%.

  • Flooring Manufacturing Revenue: Approximately $31.3 million, an increase of 14%.

  • Steel Manufacturing Revenue: Approximately $39 million, an increase of 112.1%.

  • Gross Profit: $37 million, up from $32.2 million in the prior year period.

  • Gross Margin Percentage: Decreased to 29.9% from 35.2%.

  • General and Administrative Expense: Increased by $6.8 million to $30.1 million.

  • Sales and Marketing Expense: Increased by $2.4 million to $5.9 million.

  • Interest Expense: Increased by approximately $750,000.

  • Net Loss: Approximately $2.9 million, with a loss per share of $0.91.

  • Adjusted EBITDA: Approximately $6.1 million, a decrease of $3.5 million.

  • Total Cash Availability: $34.4 million, consisting of $4.7 million cash on hand and $29.7 million in credit availability.

  • Working Capital: Approximately $57.5 million as of June 30, 2024.

  • Total Assets: $436.8 million.

  • Stockholders Equity: $92.7 million.

  • Share Repurchases: 18,156 shares repurchased; $10 million available under new repurchase program.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Total revenue for the third quarter increased by 35.4% to approximately $123.9 million, driven by strategic acquisitions.

  • The Retail-Flooring segment saw a significant revenue increase of $9.5 million or 34.7% compared to the prior year.

  • Steel Manufacturing revenue surged by 112.1%, primarily due to increased contributions from PMW and Central Steel.

  • The company repurchased 18,156 shares of common stock, indicating confidence in long-term value for shareholders.

  • Live Ventures Inc (NASDAQ:LIVE) maintains a strong liquidity position with total cash availability of $34.4 million.

Negative Points

  • Net loss for the quarter was approximately $2.9 million, compared to a net income of $1.1 million in the prior year period.

  • Gross margin percentage decreased to 29.9% from 35.2% due to lower margins from recent acquisitions.

  • General and administrative expenses increased by $6.8 million, largely due to costs associated with acquisitions.

  • Interest expense rose by $750,000 due to incremental debt from recent acquisitions.

  • PMW was in default of a financial covenant, leading to reclassification of its long-term debt to current liabilities.

Q & A Highlights

Q: Is any of the debt floating rate that you have? A: Yes, we do have floating rate debt. If interest rates go down, that would benefit the company. - David Verret, Chief Financial Officer