Live Ventures rporated(LIVE) - 2025 Q3 - Quarterly Results

Fiscal Third Quarter 2025 Financial Results Overview Live Ventures reported improved operating performance in Q3 FY2025, with higher operating income, expanded gross margins, and more than doubled Adjusted EBITDA Fiscal Third Quarter 2025 Key Highlights Live Ventures reported improved operating performance across all four segments in Q3 FY2025, with higher operating income and margins despite revenue headwinds in certain sectors. Gross margins expanded significantly, and Adjusted EBITDA more than doubled, demonstrating effective cost management and operational optimization - All four operating segments delivered improved performance in Q3 FY2025, reporting higher operating income and operating margin compared to the prior-year period, despite softness in new home construction and refurbishment markets[3][4] - Gross margins expanded by over 400 basis points to 34%, attributed to strategic pricing initiatives and operational excellence programs[4][7] - Adjusted EBITDA more than doubled, increasing $7.1 million or 115.4% to $13.2 million, demonstrating significant margin expansion and cost optimization[5][7] Fiscal Third Quarter 2025 Key Financial Highlights | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | % Change | | :-------------------------- | :------------------- | :------------------- | :------- | | Revenue | $112.5 | $123.9 | -9.2% | | Gross Margin | 34.0% | 29.9% | +410 bps | | Operating Income | $8.0 | $1.1 | +607.6% | | Net Income (Loss) | $5.4 | $(2.9) | N/A | | Diluted EPS (Loss per share)| $1.24 | $(0.91) | N/A | | Adjusted EBITDA | $13.2 | $6.1 | +115.4% | Fiscal Third Quarter 2025 Financial Summary Consolidated revenue decreased in Q3 FY2025, but operating income surged, net income turned positive, and Adjusted EBITDA more than doubled, driven by cost reduction and one-time gains Fiscal Third Quarter 2025 Consolidated Financial Summary Consolidated revenue for Q3 FY2025 decreased by 9.2% YoY, primarily due to declines in Retail-Flooring and Steel Manufacturing. However, operating income surged by 607.6% and net income turned positive, driven by increased revenue in Retail-Entertainment, lower expenses, and one-time gains. Adjusted EBITDA more than doubled, reflecting improved operating performance and cost reduction initiatives Third Quarter Fiscal Year 2025 Financial Summary (in thousands except per share amounts) | Metric | 2025 | 2024 | % Change | | :-------------------------- | :----- | :------- | :------- | | Revenue | $112,530 | $123,878 | -9.2 % | | Operating income | $8,003 | $1,131 | 607.6 % | | Net income (loss) | $5,388 | $(2,855) | N/A | | Diluted earnings (loss) per share | $1.24 | $(0.91) | N/A | | Adjusted EBITDA¹ | $13,188 | $6,123 | 115.4 % | - Revenue decreased by $11.3 million (9.2%) to $112.5 million, mainly due to Retail-Flooring and Steel Manufacturing segments[9] - Net income increased by $8.2 million to $5.4 million, with diluted EPS of $1.24, compared to a net loss of $2.9 million in the prior year. This was due to improved gross and operating margins, lower interest expense, and one-time gains of $1.5 million from Employee Retention Credits and $1.3 million from a holdback liability settlement[11] - As of June 30, 2025, the Company had $37.1 million in total cash availability, comprising $7.6 million cash on hand and $29.5 million under credit facilities[13] Fiscal Third Quarter 2025 Segment Results In Q3 FY2025, Retail-Entertainment saw significant revenue and operating income growth, while Retail-Flooring, Flooring Manufacturing, and Steel Manufacturing experienced revenue declines due to market softness and dispositions, but improved operating income and Adjusted EBITDA through cost reduction and strategic pricing. Corporate & Other also showed a positive shift in operating income Third Quarter Fiscal Year 2025 Segment Revenue (in thousands) | Segment | 2025 | 2024 | % Change | | :--------------------- | :----- | :----- | :------- | | Retail - Entertainment | $19,017 | $16,503 | 15.2 % | | Retail - Flooring | 30,373 | 36,981 | -17.9 % | | Flooring Manufacturing | 29,487 | 31,264 | -5.7 % | | Steel Manufacturing | 33,645 | 39,047 | -13.8 % | | Corporate & Other | 8 | 83 | -90.4 % | | Total Revenue | $112,530 | $123,878 | -9.2 % | Third Quarter Fiscal Year 2025 Segment Operating Income (Loss) (in thousands) | Segment | 2025 | 2024 | % Change | | :--------------------- | :----- | :------- | :------- | | Retail - Entertainment | $2,318 | $1,332 | 74.0 % | | Retail - Flooring | (733) | (1,498) | 51.1 % | | Flooring Manufacturing | 4,135 | 1,856 | 122.8 % | | Steel Manufacturing | 2,277 | 1,370 | 66.2 % | | Corporate & Other | 6 | (1,929) | N/A | | Total Operating Income | $8,003 | $1,131 | 607.6 % | Third Quarter Fiscal Year 2025 Segment Adjusted EBITDA (in thousands) | Segment | 2025 | 2024 | % Change | | :--------------------- | :----- | :------- | :------- | | Retail - Entertainment | $2,573 | $1,575 | 63.4 % | | Retail - Flooring | 590 | (258) | N/A | | Flooring Manufacturing | 4,960 | 2,797 | 77.3 % | | Steel Manufacturing | 4,271 | 3,102 | 37.7 % | | Corporate & Other | 794 | (1,093) | N/A | | Total Adjusted EBITDA¹ | $13,188 | $6,123 | 115.4 % | Retail – Entertainment The Retail-Entertainment segment's revenue increased by 15.2% to $19.0 million, driven by a product mix shift towards higher-priced new products. Operating income significantly improved by 74.0% to $2.3 million, despite a slight decrease in gross margin due to the new product mix - Revenue increased by $2.5 million, or 15.2%, to $19.0 million, primarily due to changes in product mix towards new products with higher selling prices[16][18] - Operating income was approximately $2.3 million, up from $1.3 million in the prior-year period[18] - Gross margin slightly decreased to 57.5% from 57.9% due to the sales of new products with lower margins[18] Retail – Flooring The Retail-Flooring segment's revenue decreased by 17.9% to $30.4 million, mainly due to the disposition of certain stores and decreased consumer demand. Despite a slight drop in gross margin, the operating loss improved by 51.1% to $0.7 million, driven by targeted cost reduction initiatives - Revenue decreased by $6.6 million, or 17.9%, to $30.4 million, primarily due to the disposition of certain Johnson stores and decreased demand from broader economic conditions[19] - Operating loss improved to $0.7 million from $1.5 million in the prior-year period, attributed to lower general and administrative and sales and marketing expenses from cost reduction initiatives[19] - Gross margin was 35.5%, down from 36.6%, primarily due to a change in product mix[19] Flooring Manufacturing The Flooring Manufacturing segment experienced a 5.7% revenue decrease to $29.5 million due to reduced consumer demand and housing market weakness. However, gross margin improved significantly to 29.9%, and operating income more than doubled to $4.1 million, driven by product mix changes and lower operating expenses - Revenue decreased by $1.8 million, or 5.7%, to $29.5 million, primarily due to reduced consumer demand from ongoing weakness in the housing market[20] - Gross margin increased to 29.9% from 24.7%, primarily due to changes in product mix[20] - Operating income improved to $4.1 million from $1.9 million, attributable to lower general and administrative and sales and marketing expenses[20] Steel Manufacturing The Steel Manufacturing segment's revenue declined by 13.8% to $33.6 million, mainly due to lower sales volumes, partially offset by the Central Steel acquisition. Gross margin significantly increased to 23.1%, and operating income grew by 66.2% to $2.3 million, driven by strategic price increases and the higher-margin acquisition - Revenue decreased by $5.4 million, or 13.8%, to $33.6 million, driven by lower sales volumes, partially offset by $5.0 million incremental revenue from the Central Steel Fabricators acquisition[21] - Gross margin increased to 23.1% from 15.8%, primarily due to strategic price increases and the acquisition of Central Steel, which has higher margins[21] - Operating income was approximately $2.3 million, up from $1.4 million in the prior-year period[21] Corporate and Other The Corporate and Other segment shifted from an operating loss of $1.9 million in the prior year to an operating income of $6,000 in Q3 FY2025. This improvement is due to the reallocation of certain costs to segment levels and a reduction in overall expenses - Operating income for the quarter ended June 30, 2025, was approximately $6,000, compared to an operating loss of $1.9 million in the prior-year period[22] - The change in operating income is due to the reallocation of certain costs from the Corporate holding company level to the segment level, along with a reduction in expenses[24] Nine Months Fiscal Year 2025 Financial Summary For the nine months, consolidated revenue decreased, but operating income surged, net income turned significantly positive, and Adjusted EBITDA increased by 31.7% Nine Months Fiscal Year 2025 Consolidated Financial Summary For the nine months ended June 30, 2025, consolidated revenue decreased by 8.1%, primarily from Flooring Manufacturing, Retail-Flooring, and Steel Manufacturing. However, operating income surged by 183.2%, and net income turned significantly positive, driven by improved operating performance, cost reduction initiatives, and substantial one-time gains. Adjusted EBITDA increased by 31.7% Nine Months Fiscal Year 2025 Financial Summary (in thousands except per share amounts) | Metric | 2025 | 2024 | % Change | | :-------------------------- | :------- | :------- | :------- | | Revenue | $331,051 | $360,097 | -8.1 % | | Operating income | $10,857 | $3,834 | 183.2 % | | Net income (loss) | $21,746 | $(6,818) | N/A | | Diluted earnings (loss) per share | $4.97 | $(2.16) | N/A | | Adjusted EBITDA¹ | $25,379 | $19,275 | 31.7 % | - Revenue decreased by $29.0 million (8.1%) to $331.1 million, mainly due to Flooring Manufacturing, Retail-Flooring, and Steel Manufacturing segments, partially offset by Retail-Entertainment[26] - Net income was $21.7 million, with diluted EPS of $4.97, compared to a net loss of $6.8 million in the prior year. This increase includes a $22.8 million gain on modification of the Flooring Liquidators seller note, a $2.8 million gain on settlement of PMW earnout liability, and a $0.7 million gain on settlement of PMW seller notes, in addition to Q3 gains[28] - Adjusted EBITDA increased by $6.1 million (31.7%) to $25.4 million, reflecting improved operating performance and targeted cost reduction initiatives[29] Nine Months Fiscal Year 2025 Segment Results For the nine months, Retail-Entertainment showed revenue and operating income growth. Retail-Flooring, Flooring Manufacturing, and Steel Manufacturing experienced revenue declines but improved operating income (except Retail-Flooring's increased loss) and Adjusted EBITDA, largely due to cost reduction efforts and strategic acquisitions/pricing. Corporate & Other significantly reduced its operating loss Nine Months Fiscal Year 2025 Segment Revenue (in thousands) | Segment | 2025 | 2024 | % Change | | :--------------------- | :------- | :------- | :------- | | Retail - Entertainment | $58,758 | $53,930 | 9.0 % | | Retail - Flooring | 89,519 | 103,332 | -13.4 % | | Flooring Manufacturing | 85,302 | 94,689 | -9.9 % | | Steel Manufacturing | 97,402 | 107,889 | -9.7 % | | Corporate & Other | 70 | 257 | -72.8 % | | Total Revenue | $331,051 | $360,097 | -8.1 % | Nine Months Fiscal Year 2025 Segment Operating Income (Loss) (in thousands) | Segment | 2025 | 2024 | % Change | | :--------------------- | :------- | :------- | :------- | | Retail - Entertainment | $8,223 | $6,305 | 30.4 % | | Retail - Flooring | (5,648) | (4,433) | -27.4 % | | Flooring Manufacturing | 5,536 | 4,779 | 15.8 % | | Steel Manufacturing | 5,639 | 3,225 | 74.9 % | | Corporate & Other | (2,893) | (6,042) | 52.1 % | | Total Operating Income | $10,857 | $3,834 | 183.2 % | Nine Months Fiscal Year 2025 Segment Adjusted EBITDA (in thousands) | Segment | 2025 | 2024 | % Change | | :--------------------- | :------- | :------- | :------- | | Retail - Entertainment | $9,139 | $7,441 | 22.8 % | | Retail - Flooring | (2,159) | (803) | -168.9 % | | Flooring Manufacturing | 7,983 | 7,571 | 5.4 % | | Steel Manufacturing | 10,814 | 8,235 | 31.3 % | | Corporate & Other | (398) | (3,169) | 87.4 % | | Total Adjusted EBITDA¹ | $25,379 | $19,275 | 31.7 % | Retail – Entertainment For the nine months, Retail-Entertainment revenue increased by 9.0% to $58.8 million, driven by product mix changes. Gross margin slightly improved to 57.7%, and operating income grew by 30.4% to $8.2 million - Revenue increased by $4.8 million, or 9.0%, to $58.8 million, primarily due to changes in product mix towards new products with higher selling prices[32] - Operating income was approximately $8.2 million, up from $6.3 million in the prior-year period[32] - Gross margin slightly increased to 57.7% from 57.3%[32] Retail – Flooring The Retail-Flooring segment's revenue decreased by 13.4% to $89.5 million for the nine months, mainly due to store dispositions and decreased demand. The operating loss increased by 27.4% to $5.6 million, primarily due to revenue and gross margin declines, partially offset by cost reduction initiatives - Revenue decreased by $13.8 million, or 13.4%, to $89.5 million, primarily due to the disposition of certain Johnson stores and decreased demand[33] - Operating loss increased to $5.6 million from $4.4 million, primarily due to decreased revenues and gross margin, partially offset by cost reduction initiatives[33] - Gross margin was 35.7%, down from 37.0%, primarily driven by a change in product mix[33] Flooring Manufacturing Flooring Manufacturing revenue decreased by 9.9% to $85.3 million for the nine months due to reduced consumer demand. However, gross margin improved to 26.4%, and operating income increased by 15.8% to $5.5 million, driven by product mix changes - Revenue decreased by $9.4 million, or 9.9%, to $85.3 million, primarily due to reduced consumer demand from ongoing weakness in the housing market[34] - Gross margin increased to 26.4% from 24.2%, primarily due to changes in product mix[34] - Operating income was approximately $5.5 million, up from $4.8 million in the prior-year period[34] Steel Manufacturing Steel Manufacturing revenue decreased by 9.7% to $97.4 million for the nine months, mainly due to lower sales volumes, partially offset by the Central Steel acquisition. Gross margin significantly improved to 20.9%, and operating income grew by 74.9% to $5.6 million, driven by strategic price increases and the acquisition of Central Steel - Revenue decreased by $10.5 million, or 9.7%, to $97.4 million, driven by lower sales volumes, partially offset by $11.9 million incremental revenue from the Central Steel acquisition[35] - Gross margin increased to 20.9% from 15.3%, primarily due to strategic price increases and the acquisition of Central Steel[35] - Operating income was approximately $5.6 million, up from $3.2 million in the prior-year period[35] Corporate and Other The Corporate and Other segment's operating loss significantly decreased by 52.1% to $2.9 million for the nine months, compared to $6.0 million in the prior year. This improvement is attributed to cost reallocation to segment levels and overall expense reduction - Operating loss was approximately $2.9 million, a 52.1% improvement from $6.0 million in the prior-year period[36][31] - The change in operating loss is due to the reallocation of certain costs from the Corporate holding company level to the segment level and a reduction in expenses[37] Consolidated Financial Statements The consolidated financial statements reflect decreased total assets, increased stockholders' equity, and a significant turnaround from net loss to net income Consolidated Balance Sheets As of June 30, 2025, Live Ventures reported total assets of $387.5 million and stockholders' equity of $94.3 million. Current assets decreased, primarily due to lower trade receivables, while total liabilities also decreased, driven by reductions in current liabilities such as accounts payable and current portion of long-term debt Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | September 30, 2024 | | :------------------------------------ | :------------ | :----------------- | | Cash | $7,625 | $4,601 | | Trade receivables, net | 39,038 | 46,861 | | Inventories, net | 126,350 | 120,456 | | Total current assets | 169,885 | 181,935 | | Total assets | 387,464 | 407,547 | | Accounts payable | 25,109 | 31,002 | | Total current liabilities | 103,256 | 129,659 | | Total liabilities | 293,207 | 334,658 | | Total stockholders' equity | 94,257 | 72,889 | - Total assets decreased from $407.5 million at September 30, 2024, to $387.5 million at June 30, 2025[45] - Total stockholders' equity increased from $72.9 million at September 30, 2024, to $94.3 million at June 30, 2025[45] Consolidated Statements of Income The consolidated statements of income show a significant turnaround from a net loss in the prior year to net income in both Q3 and the nine months ended June 30, 2025. This was driven by substantial increases in gross profit and operating income, coupled with various one-time gains, despite a decrease in overall revenue Consolidated Statements of Income Highlights (in thousands) | Metric | Q3 FY2025 | Q3 FY2024 | YTD FY2025 | YTD FY2024 | | :-------------------------------- | :-------- | :-------- | :--------- | :--------- | | Revenue | $112,530 | $123,878 | $331,051 | $360,097 | | Cost of revenue | 74,243 | 86,833 | 222,254 | 251,258 | | Gross profit | 38,287 | 37,045 | 108,797 | 108,839 | | Operating income | 8,003 | 1,131 | 10,857 | 3,834 | | Net income (loss) | $5,388 | $(2,855) | $21,746 | $(6,818) | | Diluted earnings (loss) per share | $1.24 | $(0.91) | $4.97 | $(2.16) | - Gross profit increased in Q3 FY2025 to $38.3 million from $37.0 million in Q3 FY2024, despite lower revenue, indicating improved margins[47] - Total other income (expense), net, significantly improved, moving from an expense of $(4.95) million in Q3 FY2024 to an expense of $(0.55) million in Q3 FY2025, and from an expense of $(13.06) million to an income of $18.27 million for the nine months, largely due to various gains[47] Non-GAAP Financial Information This section defines Adjusted EBITDA as a non-GAAP measure for evaluating operational performance and provides its reconciliation from net income (loss) Adjusted EBITDA Definition Adjusted EBITDA is a non-GAAP financial measure defined as net income (loss) before interest expense, interest income, income taxes, depreciation, amortization, stock-based compensation, and other non-cash or nonrecurring charges. It is used by management and financial analysts to evaluate operational strength, performance, and ability to fund capital expenditures and service debt, but should not be considered a substitute for GAAP measures - 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[38] - Management uses Adjusted EBITDA to evaluate operating results, perform analytical comparisons, and identify strategies to improve performance, believing it is useful for investors in analyzing operating performance[38] - Adjusted EBITDA is a non-GAAP measure and should not be construed as an alternative to net income or loss, nor indicative of cash flow available to fund cash needs[38] Adjusted EBITDA Reconciliation The reconciliation shows how Net Income (Loss) is adjusted to arrive at Adjusted EBITDA. For Q3 FY2025, Net Income of $5.388 million was adjusted to $13.188 million Adjusted EBITDA. For the nine months, Net Income of $21.746 million was adjusted to $25.379 million Adjusted EBITDA, with significant adjustments for non-recurring gains Adjusted EBITDA Reconciliation (in thousands) | Metric | Q3 FY2025 | Q3 FY2024 | YTD FY2025 | YTD FY2024 | | :-------------------------------- | :-------- | :-------- | :--------- | :--------- | | Net income (loss) | $5,388 | $(2,855) | $21,746 | $(6,818) | | Depreciation and amortization | 4,546 | 4,349 | 13,362 | 12,832 | | Stock-based compensation | 50 | 174 | 150 | 274 | | Interest expense, net | 3,854 | 4,233 | 11,949 | 12,563 | | Income tax expense (benefit) | 2,067 | (968) | 7,385 | (2,409) | | Gain on modification of seller note | — | — | (22,784) | — | | Gain on settlement of earnout liability | — | — | (2,840) | — | | Gain on settlement of holdback | (1,282) | — | (1,186) | — | | Gain on Employee Retention Credits| (1,469) | — | (1,824) | — | | Acquisition costs | — | 889 | — | 1,762 | | Disposition of Johnson | — | 301 | — | 301 | | Adjusted EBITDA | $13,188 | $6,123 | $25,379 | $19,275 | - Adjusted EBITDA for Q3 FY2025 was $13.188 million, a 115.4% increase from $6.123 million in Q3 FY2024[49] - Adjusted EBITDA for the nine months ended June 30, 2025, was $25.379 million, a 31.7% increase from $19.275 million in the prior-year period[49] Forward-Looking and Cautionary Statements This section contains forward-looking statements, identified by words like "will," "expects," and "anticipates," which are subject to risks and uncertainties. Actual results may differ materially due to various factors, including management plans, market acceptance of products, and future financial performance. The company cautions that these statements are qualified by factors in its Annual Report on Form 10-K and undertakes no obligation to update them - The press release contains forward-looking information, identified by words such as "will," "expects," "anticipates," and similar statements, intended to be covered by safe harbor provisions[39] - Actual results could differ materially from forward-looking statements due to factors including management plans, market acceptance of products, and future financial performance[39] - The company cautions that forward-looking statements are qualified by factors set forth in its Annual Report on Form 10-K and undertakes no obligation to publicly update them[39][41] About Live Ventures Incorporated Live Ventures Incorporated is a diversified holding company focused on value-oriented acquisitions of domestic middle-market companies. Its strategy is sector-agnostic, targeting well-run businesses with a track record of earnings growth and cash flow generation, aiming to build stockholder value through a disciplined buy-build-hold approach. Founded in 1968, the company's portfolio includes textile, flooring, tools, steel, and entertainment industries - Live Ventures is a diversified holding company with a strategic focus on value-oriented acquisitions of domestic middle-market companies[42] - The acquisition strategy is sector-agnostic, targeting well-run, closely held businesses with demonstrated earnings growth and cash flow generation[42] - The company's current portfolio includes subsidiaries in the textile, flooring, tools, steel, and entertainment industries[42] Contact Information For investor relations inquiries, contact Greg Powell, Director of Investor Relations at Live Ventures Incorporated, via phone at 725.500.5597 or email at gpowell@liveventures.com. Additional information is available on their website, www.liveventures.com - Contact: Greg Powell, Director of Investor Relations, Live Ventures Incorporated[43] - Phone: 725.500.5597, Email: gpowell@liveventures.com[43] - Website: **www.liveventures.com**[43](index=43&type=chunk)