Release Date: February 06, 2025

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

Positive Points

• Retail entertainment revenue increased by 3.3% to approximately $21.3 million due to an increase in the number of stores.
• Gross margin percentage improved to 31.7% from 30.9% in the prior year period, driven by increased margins in retail entertainment and steel manufacturing segments.
• Net income for the quarter was approximately $500,000, a significant improvement from a net loss of $700,000 in the prior year period.
• The company achieved a $2.8 million gain on the settlement of the earnout liability related to the PMW acquisition.
• Live Ventures Inc (NASDAQ:LIVE) repurchased approximately 15,700 shares of common stock, indicating confidence in long-term value for stockholders.

Negative Points

• Total revenue for the quarter decreased by 0.2% to approximately $111.5 million.
• The flooring manufacturing, retail flooring, and steel manufacturing segments saw a combined revenue decrease of approximately $6.7 million.
• Retail flooring segment revenue decreased by 7.5% to approximately $31.7 million due to reduced demand.
• Manufacturing segment revenue decreased by 11.1% to approximately $26 million, also due to reduced demand.
• Adjusted EBITDA for the quarter decreased by approximately $3 million compared to the prior year period.

Q & A Highlights

• Warning! GuruFocus has detected 8 Warning Signs with LIVE.

Q: Can you provide more details on the settlement related to the earnout liability and seller notes? Is this a one-time event? A: Yes, this is a one-time event. Our goal was to completely remove the sellers from the picture. We negotiated to settle a $2.5 million seller note and eliminate the earnout liability, resulting in a $3.5 million gain for us. David Barrett, CFO

Q: Looking forward, do you anticipate continued losses or a return to profitability? A: We do not provide specific guidance on future projections. However, we have implemented several initiatives across our entities that have struggled, and we are optimistic about seeing positive results from these efforts soon. David Barrett, CFO

Q: Are there any new acquisitions or companies being considered for addition to your portfolio in the near term? A: While opportunities do arise, there is currently nothing significant or imminent that we are actively pursuing. David Barrett, CFO

Q: How did the retail entertainment segment perform this quarter? A: The retail entertainment segment saw a revenue increase of $700,000 or 3.3% compared to the prior year, reaching approximately $21.3 million. This was primarily due to an increase in the number of stores from 70 to 73. David Barrett, CFO

Q: What measures are being taken to address the challenges in the retail flooring and flooring manufacturing segments? A: We are implementing measures to enhance the efficiency of our flooring businesses to address the reduced consumer demand impacting these segments. Despite challenges, we remain confident in our long-term strategy. David Barrett, CFO

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