LAS VEGAS, Feb. 10, 2022 (GLOBE NEWSWIRE) -- Live Ventures Incorporated LIVE, a diversified holding company, today announced financial results for its first quarter ended December 31, 2021.
Q1 FY2022 Key Highlights:
- Revenues of $75.2 million increased 20.3% over the prior year period;
- Gross profit of $27.6 million increased 24.0% over the prior year period;
- Operating income of $10.4 million increased 42.7% over the prior year period;
- Interest Expense of $1.0 million decreased 30.8% over the prior year period;
- Net income of $6.5 million increased 24.0% over the prior year period;
- Adjusted EBTIDA1 of $12.1 million increased 21.9% over the prior year period;
- Q1 2022 Basic and Fully Diluted EPS were $4.14 and $2.04, respectively, increased 20.0% and 25.4%, respectively, over the prior year period;
- Total assets of $219.0 million; and
- Approximately $38.8 million of cash and availability under our credit facilities.
"I continue to be pleased with the result of Live Ventures' efforts, as demonstrated by our strong financial performance for the first fiscal quarter of this year," Jon Isaac, President and CEO of Live Ventures commented. "Live Ventures has continued to execute upon its strategic plan, deliver meaningful financial results, and demonstrate resiliency in uncertain times."
Live Ventures reported revenues of $75.2 million, and basic earnings per share ("EPS") of $4.14, which represents an increase of 20.3% and 20.0%, respectively, over the prior year period. The company also reported operating income of $10.4 million and net income of $6.5 million, representing an increase of 42.7% and 24.0%, respectively, over the same period last year.
Net income for the quarter includes approximately $0.8 million from SW Financial, which is included as part of the company's Corporate & other segment. As of December 31, 2021, the company reported total assets of $219.0 million, and total cash and cash availability under its various lines of credit of $38.8 million. Stockholders' equity attributable to Live Ventures' stockholders was approximately $82.1 million as of December 31, 2021.
Each of the company's three main reporting segments continued to demonstrate meaningful growth on a topline and operating income basis compared to the prior year period.
"We started our fiscal 2022 in a fantastic position with each of our diverse reporting segments continuing to provide meaningful contribution and providing Live Ventures continued liquidity and availability to invest in both new acquisitions and our existing operations," Mr. Isaac concluded.
________________________
1 Adjusted EBTIDA is a non-GAAP measure. A reconciliation of the non-GAAP measure is included below.
Q1 FY2022 Financial Summary (in thousands)
| During the three months ended December 31, | ||||||||
| 2021 | 2020 | % Change | ||||||
| Revenues | $ | 75,158 | $ | 62,454 | 20.3 | % | ||
| Operating Income | $ | 10,407 | $ | 7,291 | 42.7 | % | ||
| Net income applicable to common stock | $ | 6,546 | $ | 5,413 | 20.9 | % | ||
| Basic earnings per share | $ | 4.14 | $ | 3.45 | 20.0 | % | ||
| During the three months ended December 31, | ||||||||
| 2021 | 2020 | % Change | ||||||
| Revenues | ||||||||
| Retail | $ | 26,211 | $ | 22,370 | 17.2 | % | ||
| Flooring Manufacturing | $ | 32,872 | $ | 30,222 | 8.8 | % | ||
| Steel Manufacturing | $ | 12,366 | $ | 9,735 | 27.0 | % | ||
| Corporate & other | $ | 3,709 | $ | 127 | 2820.5 | % | ||
| Total | $ | 75,158 | $ | 62,454 | 20.3 | % | ||
| During the three months ended December 31, | ||||||||||
| 2021 | 2020 | % Change | ||||||||
| Operating income (loss) | ||||||||||
| Retail | $ | 4,810 | $ | 4,493 | 7.1 | % | ||||
| Flooring Manufacturing | $ | 4,608 | $ | 4,150 | 11.0 | % | ||||
| Steel Manufacturing | $ | 1,654 | $ | 144 | 1048.6 | % | ||||
| Corporate & other | $ | (665 | ) | $ | (1,496 | ) | 55.5 | % | ||
| Total | $ | 10,407 | $ | 7,291 | 42.7 | % | ||||
| For the Three Months Ended December 31, 2021 | For the Three Months Ended December 31, 2020 | ||||||
| Adjusted EBITDA | |||||||
| Retail business | $ | 5,202 | $ | 5,182 | |||
| Flooring Manufacturing business | 5,255 | 5,098 | |||||
| Steel Manufacturing business | 1,844 | 497 | |||||
| Corporate & Other | (199 | ) | (847 | ) | |||
| Total Adjusted EBITDA | $ | 12,102 | $ | 9,930 | |||
| Adjusted EBITDA as a percentage of revenue | |||||||
| Retail business | 19.8 | % | 23.2 | % | |||
| Flooring Manufacturing business | 16.0 | % | 16.9 | % | |||
| Steel Manufacturing business | 14.9 | % | 5.1 | % | |||
| Corporate & Other | -5.4 | % | -664.0 | % | |||
| Consolidated adjusted EBITDA as a percentage of revenue | 16.1 | % | 15.9 | % | |||
Retail
Retail Segment Revenue for the three months ended December 31, 2021 increased by approximately $4.0 million or 17.2%, over the prior year period, primarily due to increased retail pricing and additional locations added at Vintage Stock, offset by decreasing sales by ApplianceSmart primarily due to decreases in sales resulting from increased competition. Retail price increases were primarily due to higher product costs relating to inflationary pressures that were passed on to customers. Cost of revenue increased proportionately with the increase in revenue. Operating income for the three months ended December 31, 2021 was approximately $4.8 million, as compared to operating income of approximately $4.5 million for the prior year period.
Flooring Manufacturing
Flooring Manufacturing Segment Revenue for the three months ended December 31, 2021 increased by approximately $2.7 million, or 8.8%, over the prior year period, primarily due to greater demand for various grades of flooring, as well increases in sales prices. The shift in demand in flooring grades was generally toward higher priced product. Sales price increases were primarily due to higher product costs relating to inflationary pressures that were passed on to customers. Cost of revenue for the three months ended December 31, 2021 increased proportionately with revenue, as compared to the prior year period. Operating income for the three months ended December 31, 2021 was approximately $4.6 million, as compared to operating income of approximately $4.2 million for the prior year period.
Steel Manufacturing
Steel Manufacturing Segment Revenue for the three months ended December 31, 2021 increased by $2.6 million, or 27%, as compared to the prior year period, primarily due to increased sales prices resulting from rising costs. Cost of revenue for the three months ended December 31, 2021 decreased as a percentage of sales due to improved manufacturing efficiencies and increased revenue due to price increases, over the prior year period. Operating income for the three months ended December 31, 2021 was approximately $1.7 million, as compared to operating income of approximately $0.1 million in the prior year period. The increase in operating income is primarily due to an increase in gross profit.
Corporate and Other
The increase in Corporate and Other Revenue is primarily attributable to the consolidation of Salomon Whitney in June 2021. Operating loss for the three months ended December 31, 2021 decreased by approximately $0.8 million as compared to the prior year period.
Non-GAAP Financial Information
Adjusted EBTIDA
We evaluate the performance of our operations based on financial measures such as revenue and "Adjusted EBITDA." Adjusted EBITDA is defined as net income (loss) before interest expense, interest income, income taxes, depreciation, amortization, stock-based compensation, and other non-cash or nonrecurring charges. We believe that Adjusted EBITDA is an important indicator of the operational strength and performance of the business, including the business' ability to fund acquisitions and other capital expenditures, and to service its debt. Additionally, this measure is used by management to evaluate operating results and perform analytical comparisons and identify strategies to improve performance. Adjusted EBITDA is also a measure that is customarily used by financial analysts to evaluate a company's financial performance, subject to certain adjustments. Adjusted EBITDA does not represent cash flows from operations, as defined by generally accepted accounting principles ("GAAP"), and should not be construed as an alternative to net income or loss and is indicative neither of our results of operations, nor of cash flows available to fund all of our cash needs. It is, however, a measurement that the Company believes is useful to investors in analyzing its operating performance. Accordingly, Adjusted EBITDA should be considered in addition to, but not as a substitute for, net income, cash flow provided by operating activities, and other measures of financial performance prepared in accordance with GAAP. Adjusted EBITDA is a non-GAAP financial measure. As companies often define non-GAAP financial measures differently, Adjusted EBITDA, as calculated by Live Ventures, Incorporated, should not be compared to any similarly titled measures reported by other companies.
About Live Ventures
Live Ventures Incorporated LIVE ("Live Ventures" or the "Company") is a rapidly growing, diversified holding company with a strategic focus on value-oriented acquisitions of domestic middle-market companies. Live Venture's acquisition strategy is sector agnostic, and focuses on well-run, closely held businesses with a demonstrated track record of earnings growth and cash flow generation. The Company looks for opportunities to partner with management to build increased shareholder value through a disciplined buy-build-hold long-term focused strategy. Live Ventures was founded in 1968 and refocused in 2011 under our CEO and strategic investor, Jon Isaac. The Company's current portfolio of diversified operating subsidiaries includes companies in the textile, flooring, tools, steel, entertainment, and financial services industries.
About Our Main Operating Subsidiaries
Marquis Industries
Based in Chatsworth, GA, and acquired by Live Ventures in 2015, Marquis Industries ("Marquis") is a leading manufacturer of residential and commercial carpets sold primarily in North America and focused on residential, niche commercial, and hospitality end-markets. In addition to a diverse offering of carpeting products, Marquis Industries also designs, sources, and sells hard-surface flooring products.
Vintage Stock
Based in Joplin, MO and acquired by Live Ventures in 2016, Vintage Stock Inc. ("Vintage Stock") is an award-winning entertainment retailer that sells new and pre-owned movies, classic and current generation video games and systems, music on CD & LP, collectible comics, books, toys, and more through a unique buy-sell-trade model. Vintage Stock sells through its 60+ retail stores and its website, allowing the company to ship product worldwide directly to the customer's doorstep.
ApplianceSmart
ApplianceSmart® ("ApplianceSmart") is based in Columbus, Ohio and was acquired by Live Ventures in 2017. ApplianceSmart sells new major household appliances in the United States through its retail store. ApplianceSmart is the first independent retailer in the nation to become a voluntary member of the Environmental Protection Agency's Responsible Appliance Disposal (RAD) Program. On December 9, 2019, ApplianceSmart filed a voluntary petition in the United States Bankruptcy Court for the Southern District of New York, seeking relief under Chapter 11 of Title 11 of the United States Code.
Precision Marshall
Based in Washington, PA and acquired by Live Ventures in 2020, Precision Industries, Inc. ("Precision Marshall") is a leading manufacturer of premium steel tools and specialty alloys. Precision Marshall manufactures pre-finished decarb-free tool and die steel. For over 70 years, Precision Marshall has been known by steel distributors for its quick and accurate service and has led the industry with exemplary availability and value-added processing.
Salomon Whitney
Based in Melville, NY, Salomon Whitney LLC ("Salomon Whitney") is a licensed broker-dealer and investment bank offering clients a broad range of products and services, including broker retailing of corporate equity and debt securities, private placement of securities, corporate finance consulting regarding mergers and acquisitions, broker selling of variable life insurance or annuities, and broker retailing of U.S. government and municipal securities. Salomon Whitney has over 70 registered representatives and is licensed to operate in all 50 states. As of December 31, 2021, Live Ventures owns a 24.9% interest in Salomon Whitney. However, Salomon Whitney is consolidated into Live Ventures financial statements as a variable interest entity.
Contact:
Live Ventures Incorporated
Tim Matula, Investor Relations
(425) 836-9035
tmatula@liveventures.com
http://liveventures.com
Source: Live Ventures Incorporated
| LIVE VENTURES INCORPORATED CONSOLIDATED BALANCE SHEETS (dollars in thousands) | ||||||||
| December 31, 2021 | September 30, 2021 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Cash | $ | 10,031 | $ | 4,664 | ||||
| Trade receivables, net of allowance for doubtful accounts of $61 at December 31, 2021 and September 30, 2021 | 19,117 | 21,559 | ||||||
| Inventories, net of reserves of approximately $1.9 million at December 31, 2021, and approximately $1.8 million at September 30, 2021 | 73,898 | 70,747 | ||||||
| Prepaid expenses and other current assets | 2,042 | 1,640 | ||||||
| Debtor in possession assets | 143 | 180 | ||||||
| Total current assets | 105,231 | 98,790 | ||||||
| Property and equipment, net of accumulated depreciation of approximately $21.8 million at December 31, 2021, and approximately $20.6 million at September 30, 2021 | 37,440 | 35,632 | ||||||
| Right of use asset - operating leases | 29,090 | 30,466 | ||||||
| Deposits and other assets | 1,345 | 682 | ||||||
| Intangible assets, net of accumulated amortization of approximately $2.5 million at December 31, 2021 and approximately $2.2 million at September 30, 2021 | 4,410 | 4,697 | ||||||
| Goodwill | 41,471 | 41,471 | ||||||
| Total assets | $ | 218,987 | $ | 211,738 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Liabilities: | ||||||||
| Accounts payable | $ | 9,713 | $ | 10,644 | ||||
| Accrued liabilities | 14,304 | 17,048 | ||||||
| Income taxes payable | 734 | 876 | ||||||
| Current portion of lease obligations - operating leases | 7,196 | 7,202 | ||||||
| Current portion of long-term debt | 17,553 | 16,055 | ||||||
| Current portion of notes payable related parties | 2,000 | 2,000 | ||||||
| Debtor-in-possession liabilities | 11,184 | 11,135 | ||||||
| Total current liabilities | 62,684 | 64,960 | ||||||
| Long-term debt, net of current portion | 40,305 | 37,559 | ||||||
| Lease obligation long term - operating leases | 28,008 | 29,343 | ||||||
| Notes payable related parties, net of current portion | 2,000 | 2,000 | ||||||
| Deferred taxes | 4,346 | 2,796 | ||||||
| Total liabilities | 137,343 | 136,658 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Series B convertible preferred stock, $0.001 par value, 1,000,000 shares authorized, 315,790 shares issued and outstanding at December 31, 2021 and September 30, 2021, respectively | — | — | ||||||
| Series E convertible preferred stock, $0.001 par value, 200,000 shares authorized, 47,840 shares issued and outstanding at December 31, 2021 and September 30, 2021, respectively, with a liquidation preference of $0.30 per share outstanding | — | — | ||||||
| Common stock, $0.001 par value, 10,000,000 shares authorized, 1,582,334 and 1,582,334 shares issued and outstanding at December 31, 2021 and September 30, 2021, respectively | 2 | 2 | ||||||
| Paid in capital | 65,302 | 65,284 | ||||||
| Treasury stock common 534,520 shares as of December 31, 2021 and September 30, 2021, respectively | (4,519 | ) | (4,519 | ) | ||||
| Treasury stock Series E preferred 50,000 shares as of December 31, 2021 and of September 30, 2021, respectively | (7 | ) | (7 | ) | ||||
| Retained earnings | 21,314 | 14,768 | ||||||
| Equity attributable to Live stockholders | 82,092 | 75,528 | ||||||
| Non-controlling interest | (448 | ) | (448 | ) | ||||
| Total stockholders' equity | 81,644 | 75,080 | ||||||
| Total liabilities and stockholders' equity | $ | 218,987 | $ | 211,738 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
| LIVE VENTURES, INCORPORATED CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share) | |||||||||
| For the Three Months Ended December 31, | |||||||||
| 2021 | 2020 | ||||||||
| Revenues | $ | 75,158 | $ | 62,454 | |||||
| Cost of revenues | 47,542 | 40,185 | |||||||
| Gross profit | 27,616 | 22,269 | |||||||
| Operating expenses: | |||||||||
| General and administrative expenses | 14,157 | 12,279 | |||||||
| Sales and marketing expenses | 3,052 | 2,699 | |||||||
| Total operating expenses | 17,209 | 14,978 | |||||||
| Operating income | 10,407 | 7,291 | |||||||
| Other (expense) income: | |||||||||
| Interest expense, net | (1,017 | ) | (1,470 | ) | |||||
| Gain on disposal of fixed assets | — | 129 | |||||||
| Loss on bankruptcy settlement | (10 | ) | — | ||||||
| Other income (expense) | 126 | 779 | |||||||
| Total other (expense) income, net | (901 | ) | (562 | ) | |||||
| Income before provision for income taxes | 9,506 | 6,729 | |||||||
| Provision for income taxes | 2,960 | 1,450 | |||||||
| Net income | 6,546 | 5,279 | |||||||
| Net loss attributable to non-controlling interest | - | 134 | |||||||
| Net income attributable to Live stockholders | $ | 6,546 | $ | 5,413 | |||||
| Income per share: | |||||||||
| Basic | $ | 4.14 | $ | 3.45 | |||||
| Diluted | $ | 2.04 | $ | 1.63 | |||||
| Weighted average common shares outstanding: | |||||||||
| Basic | 1,582,334 | 1,568,213 | |||||||
| Diluted | 3,202,057 | 3,319,088 | |||||||
| Dividends declared - series B convertible preferred stock | $ | — | $ | — | |||||
| Dividends declared - series E convertible preferred stock | $ | — | $ | — | |||||
| Dividends declared - common stock | $ | — | $ | — | |||||
LIVE VENTURES INCORPORATED
NON-GAAP MEASURES RECONCILIATION
(dollars in thousands, except per share)
Adjusted EBITDA
The following table provides a reconciliation of Net (loss) income to total Adjusted EBITDA for the periods indicated (amounts in thousands):
| For the Three Months Ended | |||||
| December 31, 2021 | December 31, 2020 | ||||
| Net income | $ | 6,546 | $ | 5,279 | |
| Depreciation and amortization | 1,549 | 1,714 | |||
| Stock-based compensation | 18 | 17 | |||
| Interest expense, net | 1,017 | 1,470 | |||
| Income tax expense (benefit) | 2,960 | 1,450 | |||
| Other | 12 | — | |||
| Adjusted EBITDA | $ | 12,102 | $ | 9,930 | |
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Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
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