Financial Performance - Revenue for the three months ended December 31, 2024, was $111,508,000, a decrease of 5.8% compared to $117,593,000 for the same period in 2023[151] - Gross profit for the same period was $35,362,000, representing 31.7% of total revenue, compared to $36,327,000 or 30.9% in 2023[151] - Net income for the three months ended December 31, 2024, was $492,000, compared to a net loss of $682,000 in 2023[151] - Total Adjusted EBITDA for the three months ended December 31, 2024, was $5,744,000, down from $8,696,000 in 2023[151] - The consolidated adjusted EBITDA as a percentage of revenue decreased to 5.2% from 7.4% in 2023[151] - Adjusted EBITDA decreased by approximately $3.0 million or 33.9% to $5.7 million for the three months ended December 31, 2024, compared to $8.7 million in the prior year[165] Segment Performance - The Retail-Entertainment segment reported Adjusted EBITDA of $3,810,000, while the Retail-Flooring segment had a loss of $971,000[151] - Steel Manufacturing segment's Adjusted EBITDA remained stable at $2,801,000, consistent with the previous year[151] - Retail-Entertainment segment revenue increased by approximately $0.7 million or 3.3% to $21.3 million for the quarter ended December 31, 2024, driven by increased consumer demand for used products[160] - Retail-Flooring segment revenue decreased by approximately $2.6 million or 7.5% to $31.7 million for the quarter ended December 31, 2024, primarily due to reduced demand[161] - Flooring Manufacturing segment revenue decreased by approximately $3.2 million or 11.1% to $26.0 million for the quarter ended December 31, 2024, attributed to reduced consumer demand[162] - Steel Manufacturing segment revenue decreased by approximately $0.9 million or 2.8% to $32.4 million for the quarter ended December 31, 2024, partially offset by revenue from the acquisition of Central Steel[163] Expenses - General and administrative expenses increased to $30,071,000, representing 27.0% of total revenue, compared to 23.5% in 2023[151] - General and Administrative expenses rose by 8.6% to approximately $30.1 million for the three months ended December 31, 2024, mainly due to increased compensation expenses related to new store openings[155] - Sales and marketing expenses decreased by 11.3% to approximately $4.5 million for the three months ended December 31, 2024, due to reduced activities at Flooring Liquidators[156] - Interest expense for the quarter was $4,162,000, slightly up from $4,163,000 in the same period last year[151] Cash Flow and Financing - As of December 31, 2024, the company had total cash on hand of approximately $7.4 million and $23.7 million available under revolving credit facilities[166] - Cash flows used in investing activities were approximately $1.8 million for the three months ended December 31, 2024, compared to $3.2 million for the same period in 2023[172][174] - Cash flows used in financing activities amounted to approximately $4.8 million for the three months ended December 31, 2024, compared to $3.4 million for the same period in 2023[173][174] - The company utilized net borrowings under revolver loans of approximately $3.1 million during the financing activities for the three months ended December 31, 2024[173] Internal Controls and Compliance - As of December 31, 2024, the company assessed its internal controls over financial reporting as ineffective due to a material weakness identified in the financial reporting and consolidation process[182] - The company plans to improve control policies and procedures over financial reporting and consolidation processes, expecting to conclude these initiatives during the fiscal year ended September 30, 2025[182] - There were no changes in internal control over financial reporting during the three months ended December 31, 2024, that materially affected the controls[184] - The company does not expect its disclosure controls and procedures to prevent or detect all errors and fraud due to inherent limitations[181] Strategic Outlook - The company continues to focus on acquiring profitable and well-managed companies to enhance operational synergies across its segments[130] - The company may require additional debt financing or capital for new acquisitions, refinancing existing debt, or other strategic investments[176] - The company has historically preferred asset-based lending arrangements and mezzanine financing for acquisitions[175] - As of December 31, 2024, the company did not participate in any market risk-sensitive commodity instruments[177]
Live Ventures rporated(LIVE) - 2025 Q1 - Quarterly Report