Company Overview - Live Ventures Incorporated is a diversified holding company focused on value-oriented acquisitions of domestic middle-market companies [2] - The company's acquisition strategy is sector agnostic, targeting well-run, closely held businesses with a proven track record of earnings growth and cash flow generation [2] - Live Ventures aims to partner with management teams of acquired businesses to enhance stockholder value through a disciplined buy-build-hold long-term strategy [2] - Founded in 1968, the company was refocused into a diversified holding company in 2011 under the leadership of CEO Jon Isaac [2] - The current portfolio includes subsidiaries in the textile, flooring, tools, steel, and entertainment industries [2] Upcoming Financial Results - Live Ventures will release its financial results for the fiscal third quarter ended June 30, 2025, before the market opens on August 7, 2025 [1] - A conference call to discuss the results is scheduled for August 7, 2025, at 2:00 p.m. Pacific Daylight Time (5:00 p.m. Eastern Daylight Time) [1] - Investors can access a recording of the discussion on the company's Investor Relations page after the call [1]

Core Viewpoint - Live Energy Minerals Corp. has successfully closed an option agreement with a purchaser for mineral claims in Saskatchewan, which includes the issuance of common shares and a cash payment requirement [1][2]. Group 1: Option Agreement Details - The option agreement allows the purchaser to acquire a 100% undivided interest in two mineral claims totaling approximately 5,355 hectares in Saskatchewan [2]. - The purchaser issued 5,500,000 common shares as part of the consideration and is required to pay $50,000 in cash within three years of the agreement's effective date [2]. - The company has granted the purchaser the right to buy a 3% net smelter return royalty by issuing an additional 5,500,000 shares to a third-party royalty holder, subject to regulatory acceptance [3]. Group 2: Regulatory and Compliance Information - The consideration shares are subject to a statutory four-month hold period under Canadian Securities Laws, and no finder's fees were paid for this arm's length agreement [4]. - A copy of the option agreement has been filed under the company's profile on SEDAR+ [4]. Group 3: Company Overview - Live Energy Minerals Corp. is focused on exploring clean energy minerals in North and South America, holding interests in uranium, vanadium, and molybdenum projects in the USA [5]. - The company aims to create shareholder value through quality projects and proven exploration strategies [5].

Revenue Performance - Revenue for the second quarter of FY 2025 was $107.0 million, a decrease of 9.8% from $118.6 million in the prior year period[4] - For the six months ended March 31, 2025, total revenue was $218.5 million, a decrease of 7.5% from $236.2 million in the prior year period[23] - Revenue for the three months ended March 31, 2025, was $107.013 million, a decrease of 9.5% compared to $118.626 million for the same period in 2024[46] Segment Performance - Retail-Entertainment segment revenue increased by 9.6% to $18.5 million, driven by a favorable product mix[14] - Retail-Flooring segment revenue decreased by 14.5% to $27.4 million, primarily due to the disposition of certain stores[15] - Steel Manufacturing segment revenue decreased by 11.7% to $31.3 million, with a gross margin increase to 21.2% due to strategic price increases[19] - Retail-Entertainment segment revenue increased by approximately $2.3 million, or 6.2%, to $39.7 million for the six months ended March 31, 2025, compared to $37.4 million in the prior year[31] - Retail-Flooring segment revenue decreased by approximately $7.2 million, or 10.9%, to $59.1 million for the six months ended March 31, 2025, primarily due to the disposition of certain stores[32] - Flooring Manufacturing segment revenue decreased by approximately $7.6 million, or 12.0%, to $55.8 million for the six months ended March 31, 2025, attributed to reduced consumer demand[34] - Steel Manufacturing segment revenue decreased by approximately $5.0 million, or 7.4%, to $63.8 million for the six months ended March 31, 2025, with lower sales volumes partially offset by revenue from the acquisition of Central Steel[35] Income and Profitability - Operating income increased to $2.1 million, compared to an operating loss of $0.8 million in the prior year period, reflecting a $2.9 million improvement[5] - Income before provision for income taxes was $21.1 million, compared to a loss of $4.5 million in the prior year period, primarily due to a $22.8 million gain on the modification of the Flooring Liquidators seller note[9] - Adjusted EBITDA for the second quarter was $6.4 million, an increase of 44.6% from $4.5 million in the prior year period[10] - Total Adjusted EBITDA decreased by 7.3% to $12.191 million for the six months ended March 31, 2025, compared to $13.153 million in the prior year[30] - Gross profit for the six months ended March 31, 2025, was $70.510 million, down from $71.794 million in 2024, reflecting a decline of 1.8%[46] - Operating income for the six months ended March 31, 2025, was $2.854 million, compared to $2.703 million in 2024, showing a growth of 5.6%[46] Cash and Assets - Total assets as of March 31, 2025, were $393.6 million, with stockholders' equity of $88.9 million[5] - Cash increased to $6.931 million as of March 31, 2025, compared to $4.601 million as of September 30, 2024[43] - Total assets decreased to $393.581 million as of March 31, 2025, from $407.547 million as of September 30, 2024[43] Shareholder Information - The company repurchased 31,323 shares of common stock at an average price of $8.28 per share[5] - Basic income per share for the three months ended March 31, 2025, was $5.10, compared to a loss of $1.04 per share in the same period of 2024[46] - The weighted average common shares outstanding for diluted earnings was 3,138,717 for the three months ended March 31, 2025[46] Expenses and Interest - Total operating expenses for the three months ended March 31, 2025, were $33.056 million, a decrease of 8.5% from $36.305 million in 2024[46] - Interest expense for the six months ended March 31, 2025, was $8.095 million, slightly down from $8.330 million in 2024[46] Gains - The company reported a gain on modification of seller note amounting to $22.784 million for the six months ended March 31, 2025[46]

Financial Data and Key Metrics Changes - Total revenue for the second quarter decreased by $9.8 million to approximately $107 million, primarily due to declines in the retail flooring, flooring manufacturing, and steel manufacturing segments [6][7] - Gross profit remained consistent at $35.1 million, with gross margin percentage increasing to 32.8% from 29.9% in the prior year period [7][8] - Net income was approximately $15.9 million for the quarter, with diluted EPS of $5.5 compared to a net loss of approximately $3.3 million and a loss per share of $1.04 in the prior year period [9] Business Line Data and Key Metrics Changes - Retail entertainment segment revenue increased by $1.6 million or 9.6% to approximately $18.5 million, driven by increased consumer demand for new products [6] - Retail flooring segment revenue decreased by $4.6 million or 14.5% to approximately $27.4 million, primarily due to the disposition of certain stores [6][7] - Flooring manufacturing segment revenue decreased by $4.4 million or 12.8% to approximately $29.8 million, attributed to reduced consumer demand [7] - Steel manufacturing segment revenue decreased by $4.2 million or 11.7% to approximately $31.3 million, driven by lower sales volumes, partially offset by revenue from Central Steel [7] Market Data and Key Metrics Changes - The company faced challenges in the flooring businesses due to ongoing softness in new home construction and home refurbishment markets, as well as economic uncertainty [5] - The steel manufacturing segment showed improved efficiencies following the acquisition of Central Steel, which historically generated higher margins [8] Company Strategy and Development Direction - The company is implementing operational initiatives to enhance performance in the retail flooring segment, including a new executive management team and targeted cost reduction initiatives [5][10] - The focus remains on operational excellence and long-term fundamentals of the business, with potential share repurchases as part of the capital allocation strategy [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the business despite challenging market conditions impacting the retail flooring and flooring manufacturing segments [10] - The company is actively monitoring potential impacts from tariffs and diversifying vendor relationships to mitigate risks [20][22] Other Important Information - The company successfully negotiated a $19 million reduction in flooring liquidators seller notes, resulting in a $22.8 million gain [5][9] - Total cash availability at the end of the quarter was $26.6 million, with working capital of approximately $49.1 million [9] Q&A Session Summary Question: About the modification of the note - The modification of the note was not anticipated in the original agreement and was a result of renegotiation [16][17] Question: Impact of tariffs on the business - The company has not experienced negative impacts from tariffs to date and is preparing for potential future changes by diversifying vendor relationships [20][22]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 decreased by $9.8 million to approximately $107 million, primarily due to declines in retail flooring, flooring manufacturing, and steel manufacturing segments [6][7] - Net income for the quarter was approximately $15.9 million, with diluted EPS of $5.5, compared to a net loss of approximately $3.3 million and a loss per share of $1.04 in the prior year period [9] - Adjusted EBITDA for the quarter increased by approximately $2 million to around $6.4 million, driven by the acquisition of Central Steel and cost reduction initiatives [9] Business Line Data and Key Metrics Changes - Retail entertainment segment revenue increased by $1.6 million or 9.6% to approximately $18.5 million, attributed to higher consumer demand for new products [6] - Retail flooring segment revenue decreased by $4.6 million or 14.5% to approximately $27.4 million, mainly due to the disposition of certain stores [7] - Flooring manufacturing segment revenue decreased by $4.4 million or 12.8% to approximately $29.8 million, driven by reduced consumer demand [7] - Steel manufacturing segment revenue decreased by $4.2 million or 11.7% to approximately $31.3 million, impacted by lower sales volumes, partially offset by revenue from Central Steel [7] Market Data and Key Metrics Changes - The company faced challenges in the flooring business due to ongoing softness in new home construction and home refurbishment markets, as well as economic uncertainty [5] - The retail flooring and flooring manufacturing segments were particularly affected by reduced consumer demand [10] Company Strategy and Development Direction - The company is focusing on operational excellence and has implemented targeted cost reduction initiatives in the flooring retail segments [10] - A new executive management team has been brought in to enhance performance through top-line growth and operational efficiency in the retail flooring segment [5] - The company is considering share repurchases as part of its capital allocation strategy, believing it represents long-term value for shareholders [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the business despite current market challenges [10] - The company is actively monitoring potential impacts from tariffs and is diversifying vendor relationships to mitigate risks [17][20] Other Important Information - The company successfully negotiated a $19 million reduction in flooring liquidators seller notes, resulting in a $22.8 million gain [5][8] - Total cash availability at the end of the quarter was $26.6 million, with working capital of approximately $49.1 million [9] Q&A Session Summary Question: Was the modification of the note anticipated in the original agreement? - Management clarified that the modification was not anticipated in the original agreement and was a new renegotiation [15][16] Question: How might tariffs affect the business? - Management stated that there have been no negative impacts from tariffs to date and that they are diversifying vendor relationships to prepare for potential changes [17][20]

Financial Performance - Revenue for the three months ended March 31, 2025, was $107,013,000, a decrease of 9.5% compared to $118,626,000 for the same period in 2024[147] - Gross profit for the three months ended March 31, 2025, was $35,148,000, representing 32.8% of total revenue, compared to $35,467,000 or 29.9% in 2024[147] - Net income for the three months ended March 31, 2025, was $15,866,000, compared to a net loss of $3,281,000 in the same period of 2024[147] - Total revenue for the three months ended March 31, 2025, was approximately $107.0 million, a decrease of $11.6 million or 9.8% compared to $118.6 million in the prior year period[149] - For the six months ended March 31, 2025, total revenue was $218.5 million, a decrease of $17.7 million or 7.5% compared to $236.2 million in the prior year[157] - Net income for the six months ended March 31, 2025, was $16.4 million, compared to a net loss of $4.0 million in the prior year[154] Segment Performance - The Steel Manufacturing segment reported Adjusted EBITDA of $3,742,000, up from $2,331,000 in the prior year, reflecting a significant improvement[147] - The Retail-Flooring segment reported an Adjusted EBITDA loss of $(1,778,000), slightly improved from a loss of $(1,849,000) in 2024[147] - Retail-Entertainment segment revenue increased by approximately $1.6 million or 9.6% to $18.5 million for the quarter ended March 31, 2025, driven by higher consumer demand for new products[164] - Retail-Flooring segment revenue for Q1 2025 was approximately $27.4 million, a decrease of 14.5% from $32.0 million in Q1 2024[165] - Flooring Manufacturing segment revenue for Q1 2025 was approximately $29.8 million, a decrease of 12.8% from $34.2 million in Q1 2024[166] - Steel Manufacturing segment revenue for Q1 2025 was approximately $31.3 million, a decrease of 11.7% from $35.5 million in Q1 2024[167] - Retail-Entertainment segment revenue for the six months ended March 31, 2025 was approximately $39.7 million, an increase of 6.2% from $37.4 million in the prior year[171] - Retail-Flooring segment revenue for the six months ended March 31, 2025 was approximately $59.1 million, a decrease of 10.9% from $66.4 million in the prior year[172] - Flooring Manufacturing segment revenue for the six months ended March 31, 2025 was approximately $55.8 million, a decrease of 12.0% from $63.4 million in the prior year[173] - Steel Manufacturing segment revenue for the six months ended March 31, 2025 was approximately $63.8 million, a decrease of 7.4% from $68.8 million in the prior year[174] Adjusted EBITDA - Total Adjusted EBITDA for the three months ended March 31, 2025, was $6,446,000, an increase of 44.7% from $4,457,000 in 2024[147] - Adjusted EBITDA as a percentage of revenue for the consolidated company was 6.0% for the three months ended March 31, 2025, compared to 3.8% in 2024[147] - Adjusted EBITDA for Q1 2025 was approximately $6.4 million, an increase of 44.6% from $4.5 million in Q1 2024[176] Expenses and Cash Flow - General and Administrative expenses decreased by 5% to approximately $28.3 million for the three months ended March 31, 2025, compared to the same period in 2024[151] - Sales and marketing expenses decreased by 27% to approximately $4.7 million for the three months ended March 31, 2025, due to reduced activities at Flooring Liquidators[152] - Interest expense, net, decreased by approximately 5.6% to $3.9 million for the three months ended March 31, 2025, due to lower average debt balances[153] - Cash flows used in financing activities for the six months ended March 31, 2025, were approximately $3.0 million, including payments on notes payable of approximately $3.4 million and finance leases of approximately $2.0 million[184] - For the six months ended March 31, 2024, cash flows used in financing activities were also approximately $3.0 million, with net borrowings under revolver loans amounting to approximately $7.7 million[185] Company Strategy and Investments - The company continues to seek acquisition opportunities to enhance synergies within its diversified business model[127] - The company has made recent investments in additional capacity for its Flooring Manufacturing segment to support growth in attractive product lines[134] - The acquisition of Central Steel in May 2024 contributed to improved margins in the Steel Manufacturing segment[150] - The company is not currently issuing common shares for liquidity purposes, preferring asset-based lending and mezzanine financing for acquisitions[186] - Future financing needs may include additional debt financing or capital for new acquisitions and refinancing existing debt, which could dilute existing stockholders' ownership[187] Risk Management - As of March 31, 2025, the company did not participate in any market risk-sensitive commodity instruments and believes it is not materially exposed to foreign currency exchange risk or commodity price risk[188] Working Capital - Total cash on hand as of March 31, 2025 was approximately $6.9 million, with $19.7 million available under revolving credit facilities[178] - Working capital as of March 31, 2025 was approximately $49.1 million, a decrease of $3.2 million from $52.3 million as of September 30, 2024[180]

Core Insights - Live Ventures Incorporated reported financial results for the fiscal second quarter of 2025, showing a mixed performance across its segments, with notable improvements in Retail-Entertainment and Steel Manufacturing, while Retail-Flooring and Flooring Manufacturing faced challenges due to reduced consumer demand [1][3][4]. Financial Performance - Revenue for the second quarter decreased by approximately $11.6 million, or 9.8%, to $107.0 million compared to $118.6 million in the prior year [6][8]. - Operating income increased by approximately $2.9 million to $2.1 million, compared to an operating loss of $0.8 million in the prior year [7][8]. - Net income for the quarter was $15.9 million, a significant improvement from a net loss of $3.3 million in the prior year [8][39]. - Adjusted EBITDA rose by approximately $2.0 million, or 44.6%, to $6.4 million compared to $4.5 million in the prior year [10][39]. Segment Performance - **Retail-Entertainment**: Revenue increased by approximately $1.6 million, or 9.6%, to $18.5 million, driven by a favorable product mix [13]. - **Retail-Flooring**: Revenue decreased by approximately $4.6 million, or 14.5%, to $27.4 million, primarily due to the closure of certain stores [14]. - **Flooring Manufacturing**: Revenue decreased by approximately $4.4 million, or 12.8%, to $29.8 million, attributed to reduced consumer demand [15]. - **Steel Manufacturing**: Revenue decreased by approximately $4.2 million, or 11.7%, to $31.3 million, with a notable increase in gross margin to 21.2% [16]. Balance Sheet and Cash Position - As of March 31, 2025, total assets were $393.6 million, with stockholders' equity of $88.9 million [11][36]. - The company had approximately $26.6 million in cash and availability under credit facilities [11][39]. Six-Month Performance Summary - For the six months ended March 31, 2025, revenue decreased by approximately $17.7 million, or 7.5%, to $218.5 million [19]. - Operating income increased by approximately 5.6% to $2.9 million compared to the prior year [20]. - Adjusted EBITDA for the six months was approximately $12.2 million, a decrease of 7.3% compared to the prior year [22].

Company Overview - Live Ventures Incorporated is a diversified holding company focused on value-oriented acquisitions of domestic middle-market companies [2] - The company's acquisition strategy is sector agnostic, targeting well-run, closely held businesses with a proven track record of earnings growth and cash flow generation [2] - Live Ventures aims to partner with management teams of acquired businesses to enhance stockholder value through a disciplined buy-build-hold long-term strategy [2] - Founded in 1968, the company was refocused into a diversified holding company in late 2011 under the leadership of CEO Jon Isaac [2] - The current portfolio includes subsidiaries in the textile, flooring, tools, steel, and entertainment industries [2] Upcoming Financial Results - Live Ventures will release its financial results for the fiscal second quarter ended March 31, 2025, before the market opens on May 8, 2025 [1] - A conference call to discuss the results is scheduled for May 8, 2025, at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time) [1] - Interested parties are encouraged to dial in at least 15 minutes in advance to ensure connection [1]

Core Viewpoint - Live Energy Minerals Corp. has entered into an option agreement allowing a purchaser to acquire a 100% interest in two mineral claims totaling approximately 5,355 hectares in Saskatchewan [1][2]. Group 1: Option Agreement Details - The purchaser must issue 5,500,000 common shares to the company within five days of TSX Venture Exchange approval and pay $50,000 in cash within three years of the agreement's effective date [2]. - The company has granted the purchaser the right to buy back a 3% net smelter return royalty by issuing an additional 5,500,000 shares to the royalty holder, subject to TSXV acceptance [3]. Group 2: Company Overview - Live Energy Minerals Corp. is focused on exploring clean energy minerals in North and South America, holding interests in uranium, vanadium, and molybdenum projects in the Colorado Plateau, USA, and the McDermitt Lithium East Project in Nevada [4]. - The company aims to create shareholder value through quality projects and proven exploration strategies [4].

Company Overview - Live Ventures Incorporated is a diversified holding company focused on value-oriented acquisitions of domestic middle-market companies [4] - The company's acquisition strategy is sector-agnostic, targeting well-run, closely held businesses with a proven track record of earnings growth and cash flow generation [4] - Live Ventures was founded in 1968 and has a portfolio that includes companies in the textile, flooring, tools, steel, and entertainment industries [4] Recent Developments - Jon Isaac, President and CEO of Live Ventures, acquired 55,796 shares of the company's common stock in open market transactions valued at approximately $385,000 [1][2] - The share purchases occurred on March 25, 26, and 27, 2025, and were reported in a Form 4 filed with the Securities and Exchange Commission [2]