Live Ventures rporated(US:LIVE)2025-12-11 23:02Financial Data and Key Metrics Changes - Total revenue for Fiscal Year 2025 decreased approximately $27.9 million, or 5.9%, to approximately $444.9 million compared to approximately $472.8 million in the prior year [6] - Operating income increased by $10.2 million, or 231.7%, compared to the prior year, excluding an $18.1 million goodwill impairment recorded in Fiscal Year 2024 [5] - Net income for Fiscal Year 2025 was approximately $22.7 million, with diluted EPS of $4.93, compared to a net loss of approximately $26.7 million and a loss per share of $8.48 in the prior year [14] - Adjusted EBITDA for Fiscal Year 2025 was approximately $33.4 million, an increase of approximately $8.9 million, or 36.3%, compared to $24.5 million in the prior year [15] Business Line Data and Key Metrics Changes - Retail entertainment segment revenue for Fiscal Year 2025 was approximately $77.5 million, an increase of $6.5 million, or 9.1%, compared to the prior year [8] - Retail flooring segment revenue decreased by approximately $14.7 million, or 10.7%, to approximately $122.3 million, primarily due to the disposition of certain stores and decreased consumer demand [9] - Flooring manufacturing segment revenue decreased by approximately $11.5 million, or 8.6%, to approximately $121.6 million, driven by reduced consumer demand [10] - Steel manufacturing segment revenue decreased by approximately $7.2 million, or 5.1%, to approximately $132.6 million, primarily due to lower sales volumes, partially offset by incremental revenue from an acquisition [10] Market Data and Key Metrics Changes - The company reported continued softness in the new home construction and home refurbishment markets, which negatively impacted the retail flooring and flooring manufacturing segments [6][17] - Despite revenue declines, the fourth quarter of 2025 showed year-over-year improvement, generating higher revenues than the fourth quarter of 2024 [7] Company Strategy and Development Direction - The company is focused on driving sustainable profitability and enhancing overall performance across its businesses [18] - Strategic pricing initiatives and targeted cost reduction measures were implemented to strengthen operating disciplines and optimize cost structures [4] - The company aims to build a durable platform of businesses that are resilient in the real economy [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position for continued progress, citing actions taken during the year to strengthen operational discipline [18] - The company anticipates that interest rate reductions will benefit its financial performance, particularly as they may stimulate the housing market [30][31] Other Important Information - Total debt declined approximately $33.5 million in Fiscal Year 2025, leading to a decrease in interest expense by approximately $1.3 million, or 7.7% [13] - The company ended the fiscal year with total cash availability of approximately $38.1 million and working capital of approximately $62.1 million [15] Q&A Session Summary Question: Regarding share repurchases and issuance - Management indicated that shares may be issued in connection with acquisitions and that repurchase levels are monitored based on market conditions [26][28] Question: Debt repayment strategy - Management confirmed a commitment to continue paying down debt, with future evaluations on whether to maintain a certain level of debt for optimal returns [28] Question: Impact of interest rate reductions - Management noted that interest rate cuts have positively impacted the company, reducing interest expenses and potentially stimulating the housing market [30][31]