Q1 2025 Live Ventures Inc Earnings Call

Speaker Change: [music].

Welcome to the live ventures, FY 2025 first quarter earnings conference call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session.

Greg: I would now like to turn the call over to Greg <unk> Director of Investor Relations. Please go ahead Sir.

Greg: Thank you Jan.

Greg: Good afternoon, and welcome to the live ventures first quarter fiscal year 2025 conference call. Joining us. This afternoon is David Barrett, our Chief Financial Officer.

Greg: Some of the statements we're making today are forward looking and are based on our best view of our businesses as we see them today. The actual results could differ materially due to a number of factors, including those outlined in our latest forms.

Greg: 10-K, and 10-Q as filed with the Securities and Exchange Commission.

Greg: We have no obligation to publicly update any forward looking statements. After this call whether as a result of any new information future events changes in assumptions or otherwise you can find our press release.

Greg: We referenced on this call today in the Investor Relations section of the live ventures website.

Greg: I will direct you to our website why adventures dot com or <unk> dot Gov, our historical SEC filings.

Greg: I will now turn the call over to David to walk you through our financial performance.

David Barrett: Thank you, Greg and good afternoon, everyone.

David Barrett: Let's jump right in and discuss the financial results for the first quarter ended December 31 2024.

David Barrett: Total revenue for the quarter decreased five 2% to approximately 111 5 million.

David Barrett: The decrease is attributable to the flooring manufacturing retail flooring and steel manufacturing segments, which decreased by approximately $6 7 million in the aggregate.

David Barrett: Retail entertainment revenue increased 700000, or three 3% compared to the prior year period to approximately $21 3 million.

David Barrett: The increase in revenue was primarily due to an increase in the number of stores from 70 in Q1 2024 as compared to <unk> 73 in Q1 2025.

David Barrett: Retail flooring segment revenue decreased $2 6 million or seven 5% compared to the prior year period to approximately $31 7 million.

David Barrett: The decrease was primarily due to reduced demand and the flooring industry.

David Barrett: Flooring manufacturing segment revenue decreased $2 2 million or 11, 1% compared to the prior year period to approximately $26 million decrease in revenue was also primarily due to reduced demand and the flooring industry.

David Barrett: Steel manufacturing segment revenue decreased 900000, or two 8% compared to the prior year period to approximately $32 4 million.

David Barrett: The decrease is primarily due to reduced consumer demand, partially offset by revenue of $3 1 million at central steel, which was acquired in May 2024.

David Barrett: Gross profit for the quarter was approximately $35 4 million a decrease of $1 million compared to the prior year period.

David Barrett: The gross margin percentage for the company increased to 31, 7% from 39% in the prior year period.

David Barrett: The increase was primarily attributable to increased margins in our retail entertainment segment as well as the steel manufacturing segment, primarily due to product mix.

David Barrett: General and.

David Barrett: <unk> expense increased approximately $2 4 million to $30 1 million <unk>.

David Barrett: Increase was primarily due to increased compensation and other general administrative expenses in the retail flooring segment.

David Barrett: Sales and marketing expense decreased approximately 600000 to $4 5 million.

David Barrett: This decrease was primarily due to reduced sales and marketing activities in the retail flooring segment.

David Barrett: Interest expense remained constant at $4 2 million in the current quarter as compared to the prior year period.

David Barrett: Net income for the quarter was approximately 500000 and diluted EPS was <unk> 16.

David Barrett: <unk> to net loss of approximately 700000.

David Barrett: Loss per share of <unk> 22 cents in the prior year period.

David Barrett: The increase in net income is primarily attributable to a $2 $8 million gain on the settlement of the earn out liability related to the pmw acquisition.

And zero point $7 million gain on the settlement of Pmw seller notes.

David Barrett: Adjusted EBITDA for the quarter was approximately $5 7 million a decrease of approximately $3 million as compared to the prior year period.

David Barrett: Turning to liquidity, we ended the quarter with total cash availability of $31 1 million consisting of cash on hand of $7 4 million and availability under our various lines of credit totaling $23 7 million.

Our working capital was approximately $51 million as of December 31, 2024, compared to $52 3 million as of September 32024.

David Barrett: As of December 31, total assets were $395 5 million and total stockholders' equity was $73 3 million.

David Barrett: As part of our capital allocation strategy, we may make share repurchases from time to time, we believe our stock repurchases represent long term value for our stockholders.

David Barrett: During the quarter, we repurchased approximately 15700 shares of common stock.

David Barrett: In conclusion, we are pleased that both our retail entertainment and steel manufacturing segments delivered improved operating performance in the first quarter with increases in operating revenue and operating margins as compared to the prior year period.

David Barrett: However, challenging market conditions continue to impact our retail flooring and our foreign manufacturing segments as reduced consumer demand weighed on performance.

David Barrett: To address this we are implementing measures to enhance efficiency of our flooring businesses.

David Barrett: Despite these challenges we remain confident in the long term strategy of.

David Barrett: Our businesses, we will now take questions from those of you on the conference call. Operator, Please open the line for questions.

David Barrett: Thank you at this time, we will conduct a question and answer session.

Speaker Change: I'd like to ask a question. Please press star one on your phone now and Youll be placed into the queue in the order received.

Speaker Change: Once again to ask a question press star one on your phone now.

Speaker Change: Okay.

Speaker Change: And our first question will come from Joseph Kowalsky with JV investments.

Speaker Change: Hello.

Joseph Kowalsky: Nice to see earnings I, just wondered if you could give me some color give us some color on the settlement.

Joseph Kowalsky: What it relates to how it works is there more to it in the future is it a one time thing.

Joseph Kowalsky: Sure Yes.

Joseph Kowalsky: This is a onetime thing.

Joseph Kowalsky: It was our goal to get the sellers kind of completely out of the picture.

Joseph Kowalsky: Going forward.

Joseph Kowalsky: We had approached them on settling it was a $2 $5 million seller notes and as well as eliminating the <unk>.

Joseph Kowalsky: Earned out liability, which was a five year earn out period, and we were able to negotiate with them.

Joseph Kowalsky: Paying off the loan early.

Joseph Kowalsky: At a discount and forgiving the.

Joseph Kowalsky: The earn out.

Joseph Kowalsky: For.

Joseph Kowalsky: Basically that helped us get a about a $3 $5 million gain out of the deal.

Joseph Kowalsky: Alright, nice so without that and into the future.

Joseph Kowalsky: How do things look I mean, obviously, we had losses last year do you anticipate losses, continuing for this year and in which divisions or do you anticipate.

Joseph Kowalsky: Earnings profits.

Joseph Kowalsky: Yeah, I'll start off and we don't kind of give guidance on expectations.

Joseph Kowalsky: And the preferred projections in the future.

Joseph Kowalsky: I will say that.

Joseph Kowalsky: There.

Joseph Kowalsky: There's been a number of initiatives that we have.

Joseph Kowalsky: Ben.

Ben: Implementing across a couple of our entities.

Ben: <unk> performance has have struggled more than others.

Ben: And I think we're pleased with what we're seeing and.

Ben: Yes.

Ben: We're expecting to see some results.

Ben: These initiatives that we're enacting here in the near future.

Speaker Change: Fair enough and then last question.

Ben: Anything on the horizon as far as <unk>.

New company to be added to the portfolio are there are there things that are that.

Ben: Youre working on in the near term as opposed to just you know looking around out there.

Ben: Yeah.

Ben: There's always.

Ben: Opportunities that come up I'll say, if theres really nothing thats.

Ben: Hot at the moment.

Ben: Yeah, It was worthy of discussing.

Ben: Okay. Thank you very much.

Ben: Right.

Ben: And once again, if you'd like to ask a question. Please signal by pressing star one at this time.

Speaker Change: And it appears we have no further questions. Mr. <unk> I will turn the conference back to you for any additional or closing remarks.

Speaker Change: Okay I just want to thank everyone for attending our Q1 earnings call and we look forward to giving you an update in Q2.

Speaker Change: And this does conclude today's conference call. Thank you for attending.

Yeah.

The House: The House has ended this call goodbye.