Live Ventures rporated(US:LIVE)2026-02-12 21:55Revenue Performance - Revenue for the three months ended December 31, 2025, was $108,544,000, a decrease of 2.4% from $111,508,000 in the same period of 2024[132]. - Total revenue for the three months ended December 31, 2025, was approximately $108.5 million, a decrease of 2.7% from $111.5 million in the prior year[134]. Gross Profit and Margins - Gross profit for the same period was $35,353,000, representing 32.6% of total revenue, compared to $35,362,000 or 31.7% in 2024[132]. - Gross profit remained approximately $35.4 million, with an increase in gross margin to 32.6% from 31.7% in the prior year, driven by improved efficiencies and product mix[135]. Adjusted EBITDA - Total Adjusted EBITDA increased to $7,792,000, up 35.6% from $5,744,000 in the prior year[132]. - Adjusted EBITDA as a percentage of revenue improved to 7.2%, up from 5.2% in the prior year[132]. - Adjusted EBITDA increased by approximately $2.0 million, or 35.7%, to $7.8 million for the three months ended December 31, 2025[148]. Segment Performance - The Retail-Entertainment segment reported Adjusted EBITDA of $4,967,000, a 30.3% increase from $3,810,000 in 2024[132]. - Retail-Entertainment segment revenue increased by 11.0% to approximately $23.6 million, with operating income rising to approximately $4.7 million[140]. - Retail-Flooring segment revenue decreased by 20.2% to approximately $25.3 million, resulting in an operating loss of approximately $3.7 million[141]. - Flooring Manufacturing segment's Adjusted EBITDA rose to $3,275,000, compared to $1,633,000 in the previous year, marking a significant improvement[132]. - Flooring Manufacturing segment revenue was approximately $28.9 million, a slight decrease of 1.1%, with gross margin improving to 25.0%[142]. - Steel Manufacturing segment's Adjusted EBITDA was $3,314,000, slightly up from $3,187,000 in 2024[132]. - Steel Manufacturing segment revenue decreased by 4.3% to approximately $31.9 million, with gross margin increasing to 19.9%[145]. Expenses and Losses - General and administrative expenses decreased to $27,842,000, down from $30,071,000, reflecting a reduction in operational costs[132]. - General and Administrative expenses decreased by 7.4% to approximately $27.8 million, primarily due to targeted cost-reduction initiatives[136]. - Net loss for the quarter was $64,000, compared to a net income of $492,000 in the same quarter of 2024[132]. Cash and Financing - Working capital increased to approximately $69.1 million as of December 31, 2025, compared to $62.1 million as of September 30, 2025[152]. - Cash on hand as of December 31, 2025, was approximately $15.1 million, with net cash provided by operations at approximately $9.8 million[153]. - Cash flows used in financing activities for the three months ended December 31, 2024, totaled approximately $4.8 million, including net borrowings under revolver loans of about $3.1 million and cash paid for the settlement of seller notes of $1.9 million[157]. - The company prefers asset-based lending arrangements and mezzanine financing for acquisitions, rather than issuing common shares for liquidity purposes[158]. - Future financing may include additional debt financing or capital for new acquisitions, which could dilute existing stockholders' ownership interests[159]. Market Risk - As of December 31, 2025, the company did not participate in any market risk-sensitive commodity instruments and believes it is not materially subject to market risks such as foreign currency exchange risk[160].