Live Ventures rporated(US:LIVE)2025-05-08 20:50Financial 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]