Live Ventures Reports Fiscal Year 2024 Financial Results

LAS VEGAS, Dec. 12, 2024 (GLOBE NEWSWIRE) -- Live Ventures Incorporated (Nasdaq: LIVE) ("Live Ventures" or the "Company"), a diversified holding company, today announced financial results for its fiscal year ended September 30, 2024.

Fiscal Year 2024 Key Highlights:

   -- Revenue increased 33.1% to $472.8 million, compared to $355.2 million in 
      the prior year 
 
   -- Gross profit increased 25.3% to $144.8 million, compared to $115.6 
      million in the prior year 
 
   -- Net loss was $26.7 million and loss per share was $8.48, compared to the 
      prior year net loss of $0.1 million and loss per share of $0.03. Net loss 
      for fiscal year 2024 includes an $18.1 million goodwill impairment charge 
      in the Retail-Flooring segment 
 
   -- Adjusted EBITDA(1) was $24.5 million, compared to $31.5 million in the 
      prior year 
 
   -- Total assets of $407.5 million and stockholders' equity of $72.9 million 
      as of September 30, 2024 
 
   -- Approximately $33.3 million of cash and availability under the Company's 
      credit facilities as of September 30, 2024 

"Revenue increased 33.1% for fiscal year 2024 as compared to the prior year, primarily driven by the strategic acquisitions of Flooring Liquidators, Inc. ("Flooring Liquidators") and Precision Metal Works, Inc. ("PMW") in fiscal year 2023, as well as CSF Holdings, LLC ("Central Steel"), which was acquired in fiscal year 2024 and an increase in revenue in our Flooring Manufacturing segment," commented David Verret, Chief Financial Officer of Live Ventures.

"Our fiscal year 2023 acquisitions drove substantial revenue and gross profit growth in fiscal year 2024," stated Jon Isaac, President and Chief Executive Officer of Live Ventures. "However, challenging market conditions in our Retail-Flooring and Steel Manufacturing segments adversely affected the operating results of these businesses. Despite these industry-specific headwinds, we remain confident in our businesses and our long-term 'buy-build-hold' strategy."

 
FY 2024 Financial Summary (in thousands except per 
 share amounts) 
                                For the year ended September 30, 
                           ------------------------------------------ 
                                  2024            2023      % Change 
                           ---  ---------       --------   ---------- 
Revenue                      $    472,840      $ 355,171     33.1% 
Operating (loss) income      $    (13,644)     $  15,449          N/A 
Net loss                     $    (26,685)     $    (102)         N/A 
Loss per share               $      (8.48)     $   (0.03)         N/A 
Adjusted EBITDA(1)           $     24,497      $  31,538    -22.3% 
 
 

Revenue increased approximately $117.7 million, or 33.1%, to approximately $472.8 million for the year ended September 30, 2024, compared to revenue of approximately $355.2 million in the prior year. The increase is primarily attributable to the acquisitions of Flooring Liquidators and PMW, both of which were acquired during fiscal year 2023, and Central Steel, which was acquired in May 2024, that collectively added approximately $118.3 million, as well as an increase of approximately $15.2 million in the Flooring Manufacturing segment. The increase was partially offset by decreased revenue of approximately $13.7 million in the Company's other businesses primarily due to general economic conditions.

Operating loss was approximately $13.6 million for the year ended September 30, 2024, compared with operating income of approximately $15.4 million in the prior year. The increase in operating loss is primarily attributable to the Retail-Flooring segment's $18.1 million goodwill impairment charge and increased selling, general and administrative expenses in the Retail-Flooring segment. The increase in operating loss was also attributable to the Steel Manufacturing segment's reduced production efficiencies as a result of lower demand and lower revenue in the Retail-Entertainment segment.

For the year ended September 30, 2024, net loss was approximately $26.7 million, and loss per share was $8.48, compared with net loss of approximately $0.1 million and loss per share of $0.03 in the prior year. The increase in net loss is primarily attributable to the goodwill impairment charge in the Retail-Flooring segment, lower operating income, and higher interest expense.

Adjusted EBITDA(1) for the year ended September 30, 2024 was approximately $24.5 million, a decrease of approximately $7.0 million, or 22.3%, compared to the prior year. The decrease in adjusted EBITDA is primarily due to an overall decrease in operating income.

As of September 30, 2024 the Company had total cash availability of $33.3 million, consisting of cash on hand of $4.6 million and availability under its various lines of credit of $28.7 million.

FY 2024 Segment Results (in thousands)

 
                                  For the year ended September 30, 
                            -------------------------------------------- 
                                   2024           2023         % Change 
                            ---  --------  ---   -------      ---------- 
Revenue 
Retail - Entertainment        $    71,023       $ 78,124        -9.1% 
Retail - Flooring                 136,989         75,872        80.6% 
Flooring Manufacturing            124,929        109,770        13.8% 
Steel Manufacturing               139,566         88,912        57.0% 
Corporate & Other                     333          2,493       -86.6% 
                            ---  --------  ---   -------      ------ 
  Total Revenue               $   472,840       $355,171        33.1% 
                            ---  --------  ---   ------- 
 
                                  For the year ended September 30, 
                            -------------------------------------------- 
                                     2024           2023       % Change 
                            ---  --------  ---   -------      ---------- 
Operating Income (loss) 
Retail - Entertainment        $     7,177       $  9,265       -22.5% 
Retail - Flooring                 (25,520)          (292)            N/A 
Flooring Manufacturing              8,240          6,061        36.0% 
Steel Manufacturing                 4,584          7,978       -42.5% 
Corporate & Other                  (8,125)        (7,563)       -7.4% 
                            ---  --------        -------      ------ 
  Total Operating Income      $   (13,644)      $ 15,449             N/A 
                            ---  --------        ------- 
 
                                  For the year ended September 30, 
                            -------------------------------------------- 
                                     2024           2023       % Change 
                            ---  --------  ---   -------      ---------- 
Adjusted EBITDA(1) 
Retail - Entertainment        $     8,407       $ 10,581       -20.5% 
Retail - Flooring                  (2,357)         3,321      -171.0% 
Flooring Manufacturing             11,868         10,100        17.5% 
Steel Manufacturing                11,039         12,210        -9.6% 
Corporate & Other                  (4,460)        (4,674)        4.6% 
                            ---  --------        -------      ------ 
  Total Adjusted EBITDA(1)    $    24,497       $ 31,538       -22.3% 
                            ---  --------  ---   ------- 
 
Adjusted EBITDA(1) as a percentage of revenue 
Retail - Entertainment               11.8%          13.5% 
Retail - Flooring                    -1.7%           4.4% 
Flooring Manufacturing                9.5%           9.2% 
Steel Manufacturing                   7.9%          13.7% 
Corporate & Other                          N/A           N/A 
                            ------------------  ------------ 
  Total Adjusted EBITDA(1)            5.2%           8.9% 
    as a percentage of 
     revenue 
                            ------------------  ------------ 
 
 

Retail -- Entertainment

Retail-Entertainment segment revenue for the year ended September 30, 2024 was approximately $71.0 million, a decrease of approximately $7.1 million, or 9.1%, compared to prior year revenue of approximately $78.1 million. Revenue decreased primarily due to reduced consumer demand and a shift in sales mix toward used products, which generally have lower ticket sales with higher margins. The shift in sales mix also contributed to the increase in gross margin to 57.6% for the year ended September 30, 2024, compared to 54.7% for the prior year. Operating income for the year ended September 30, 2024 was approximately $7.2 million, compared to operating income of approximately $9.3 million for the prior year.

Retail -- Flooring

The Retail-Flooring segment revenue for the year ended September 30, 2024, was approximately $137.0 million, an increase of approximately $61.1 million, or 80.6%, compared to the prior year revenue of approximately $75.9 million. The increase is primarily due to the acquisition of Flooring Liquidators in the second quarter of fiscal year 2023, increased revenue in Flooring Liquidator's builder design and installation segment, Elite Builder Services, and the acquisition of Carpet Remnant Outlet, Inc. ("CRO") during the first quarter of fiscal year 2024. Gross margin for the year ended September 30, 2024 was 35.9%, compared to 36.6% for the prior year. Operating loss for the year ended September 30, 2024 was approximately $25.5 million, compared to operating loss of approximately $0.3 million for the prior year. The increase in operating loss was primarily due to the recognition of the $18.1 million goodwill impairment, temporary inefficiencies associated with the acquisition of CRO, and increased selling, general and administrative expenses.

Flooring Manufacturing

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