Live Ventures rporated(US:LIVE)2024-12-13 00:07Financial Data and Key Metrics Changes - Total revenue for fiscal year 2024 increased by 33.1% to approximately $472.8 million [6] - Gross profit for the year was approximately $144.8 million, up from $115.6 million in the prior year, but gross margin percentage decreased to 30.6% from 32.5% [11] - Net loss for the year was approximately $26.7 million, with a loss per share of $8.48, compared to a net loss of approximately $100,000 and a loss per share of $0.03 in fiscal year 2023 [15] - Adjusted EBITDA for the year was approximately $24.5 million, a decrease of approximately $7 million compared to the prior year [16] Business Line Data and Key Metrics Changes - Retail-Entertainment segment revenue decreased by $7.1 million or 9.1% to approximately $71 million due to reduced consumer demand [7] - Retail-Flooring segment revenue increased by $61.1 million or 80.6% to approximately $137 million, primarily due to acquisitions [8] - Flooring Manufacturing segment revenue increased by $15.2 million or 13.8% to approximately $125 million [9] - Steel Manufacturing segment revenue increased by $50.7 million or 57% to approximately $139.6 million, driven by increased revenue from PMW and Central Steel [10] Market Data and Key Metrics Changes - The decrease in revenue in the Retail-Entertainment segment was attributed to a shift in sales mix towards used products, which generally have lower ticket sales prices [8] - Flooring Liquidators faced declining performance due to high interest rates, lingering inflation, and lower consumer confidence affecting the housing market [14] Company Strategy and Development Direction - The company remains confident in its long-term buy, build, hold strategy despite challenging market conditions [20] - The focus is on cost-cutting measures and efficiency studies to address industry-specific economic headwinds [32] - The company is agnostic regarding the industries it targets for acquisitions, focusing on mid-market profitable companies [40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the adverse impacts of broader economic conditions on the flooring industry and expressed hope for a turnaround in the overall economy [34] - The company is actively working to resolve a financial covenant default related to PMW and is in discussions with creditors [18][60] Other Important Information - General and administrative expenses increased by approximately $31.4 million to $118 million, primarily due to acquisitions [12] - The company ended the year with total cash availability of $33.3 million and working capital of approximately $52.3 million [17] Q&A Session Summary Question: Concerns about revenue growth and expenses - Management is implementing cost-cutting and efficiency measures to improve the cost structure and is confident about future impacts [32][34] Question: Specifics on the increase in general and administrative expenses - The increase is attributed to wages, salaries, and leases related to acquisitions [36] Question: Methodology for finding acquisition targets - The company is agnostic to industry and focuses on mid-market profitable companies, often approached by sellers due to its reputation [40][44] Question: Financial covenant default details - The default was related to a fixed charge covenant breached post-acquisition, and management is working closely with banks to resolve it [60]