Live Ventures rporated(US:LIVE)2025-12-17 22:22Acquisitions and Business Operations - Live Ventures acquired Flooring Liquidators, Inc. in January 2023, which operates 25 warehouse-format stores and design centers across California, Arkansas, Missouri, and Nevada[28]. - Marquis Industries, a subsidiary of Live Ventures, operates through ten brands and focuses on residential, niche commercial, and printed hospitality end-markets[34][36]. - Vintage Stock operates 73 storefronts across the U.S. and has a customer list of approximately 900,000 for promotions[23][24]. - Flooring Liquidators offers a wide selection of flooring, cabinets, and countertops, featuring high-quality imported hardwood, laminate, and vinyl products[29]. - Flooring Liquidators utilizes social media and targeted paid search advertising to expand its reach and attract customers[33]. - Flooring Liquidators leases all 25 of its retail stores and warehouses, with a corporate office located in Modesto, California[187]. - Vintage Stock operates 73 stores across various states, with a significant presence in Missouri (19 stores) and Texas (16 stores)[186]. - The company operates in five segments: Retail-Entertainment, Retail-Flooring, Flooring Manufacturing, Steel Manufacturing, and Corporate & Other[206]. Financial Performance and Market Conditions - The U.S. floor covering industry had an estimated $33.2 billion in sales in 2024, with the carpet and rug industry shipments approximately $11.2 billion[40][42]. - The video game industry reported over $59 billion in consumer spending in 2024, with 205 million adults in the U.S. playing video games[26]. - The average video game player in the U.S. is 36 years old, with 64% of American adults playing video games for at least one hour weekly[26]. - Economic conditions in the U.S. could adversely affect demand for the company's products, impacting sales driven by discretionary consumer spending[132]. - The flooring manufacturing segment is sensitive to economic conditions, with potential adverse effects from declines in the U.S. or global economies impacting demand for flooring products[147]. - The steel manufacturing segment's business is cyclical and may be adversely affected by fluctuations in demand from industries such as automotive and construction[165]. Operational Challenges and Risks - The company faces risks related to fluctuating demand for its products and services, which could lead to significant fluctuations in operating results[99]. - The company may struggle to pass on rising costs of raw materials and energy to customers, which could adversely affect its financial results[151]. - Disruptions in the global supply chain, including recent geopolitical conflicts and natural disasters, may lead to increased costs and delays in delivery[152]. - Labor disruptions due to union negotiations could interfere with operations and increase operating expenses[159]. - The company may face challenges in predicting customer preferences and responding to technological developments, which could adversely affect its business[148]. - The company may struggle to renew or enter into new leases on favorable terms, potentially leading to revenue growth decline[138]. - Seasonal sales trends, particularly during winter and holiday periods, could significantly impact financial results[139]. - Results of operations may fluctuate from quarter to quarter due to various uncontrollable factors, making financial predictions challenging[140]. - Failure to effectively manage new store openings could lower sales and profitability, impacting the company's growth strategy[141]. Financial Obligations and Capital Expenditures - As of September 30, 2025, the company had approximately $117.7 million in total consolidated principal indebtedness outstanding, including $48.7 million in floating rate credit borrowings[100][102]. - The company has significant obligations under its consolidated indebtedness, which may limit its ability to react to changing market conditions and could adversely affect its financial flexibility[101]. - The company anticipates needing to make increased capital expenditures to support anticipated growth in operations and infrastructure[104]. - The company may be adversely affected by interest rate changes due to its floating rate credit facilities, which could impact its financial condition[101]. Intellectual Property and Legal Matters - The company relies on trade secrets and unpatented proprietary know-how as its principal method of protecting proprietary technologies, which may impact its competitive edge[93]. - The company is committed to protecting its intellectual property rights, but there is no assurance that these protections will be adequate against third-party infringement[110]. - The company is subject to ongoing legal proceedings that could materially affect its operations and financial condition[172]. - The company is involved in an ongoing SEC investigation, which could divert management's focus and result in substantial investigation expenses[123]. - The SEC complaint alleges various financial, disclosure, and reporting violations related to income and earnings per share data from 2016 through 2018[123]. Stock and Shareholder Information - As of September 30, 2025, the company has 198 holders of record for its common stock and 29 holders for its Series E Preferred Stock[197]. - The Series E Preferred Stock has 47,840 shares issued and outstanding, with dividends of approximately $720 paid during the year ending September 30, 2025[198]. - The company has no current plans to pay cash dividends on its common stock for the foreseeable future, with any future dividends dependent on various financial factors[199]. - A $10 million common stock repurchase program was announced on June 4, 2024, and extended through May 31, 2028[200]. - The company repurchased a total of 59,977 shares of common stock from October 1, 2024, to September 30, 2025, at an average purchase price of $8.88 per share[201]. - As of September 30, 2025, the maximum amount available for future stock repurchases under the announced plan is $9,467,429[201]. Manufacturing and Production Capabilities - Precision Marshall, acquired in July 2020, is the North American leader in pre-finished de-carb-free tool and die steel, serving over 500 steel distributors[51]. - Precision Metal Works, Inc. (PMW) ships over 35 million stampings and assemblies annually, operating across 400,000 square feet of manufacturing space[56]. - Kinetic Co. manufactures over 90 types of knives and employs approximately 100 non-union employees, serving a diverse customer base of around 600[54][67]. - Central Steel Fabricators offers over 2,300 unique products to more than 500 customers, primarily for data centers[57]. - Precision Marshall maintains a national distribution center with over 99% same-day shipment capability for its Precision Ground Flat Stock products[60]. - Kinetic's revenues are primarily derived from replacement knives, with 95% of sales to U.S.-based companies[67]. - PMW has established long-term relationships with major appliance manufacturers, serving the largest and second-largest in North America[75]. - Central Steel's adaptability to new communication technologies positions it well in the evolving data and IP markets[69]. - Precision Marshall's tool and die steel market is highly competitive, requiring significant investment in inventory and service infrastructure[79]. - Marquis has invested in new yarn extrusion capacity to expand into new markets and reduce production costs, enhancing margins[49].