LIVE VENTURES Inc Q1 FY2025 earnings call

• Total revenue decreased 5.2% to ~$111.5 million. - Retail-Entertainment revenue up 3.3% to ~$21.3 million due to more stores. - Retail-Flooring and Flooring Manufacturing segments down due to reduced flooring industry demand. - Steel Manufacturing down 2.8% partly offset by Central Steel acquisition. - Gross margin increased to 31.7% from 30.9%. - General and administrative expense up ~$2.4 million. - Sales and marketing expense down ~$600,000. - Net income up from prior year loss. - Ended quarter with $31.1 million cash availability. - Repurchased ~15,700 shares. - Implementing measures to enhance efficiency of Flooring businesses.

Total revenue for the quarter was approximately $111.5 million, a 5.2% decrease. Retail-Entertainment revenue increased $700,000 to approximately $21.3 million (3.3% increase). Retail-Flooring segment revenue decreased $2.6 million to approximately $31.7 million (7.5% decrease). Flooring Manufacturing segment revenue decreased $3.2 million to approximately $26 million (11.1% decrease). Steel Manufacturing segment revenue decreased $900,000 to approximately $32.4 million (2.8% decrease). Gross profit was approximately $35.4 million, a $1 million decrease. Gross margin percentage increased to 31.7% from 30.9%. General and administrative expense increased to $30.1 million. Sales and marketing expense decreased to $4.5 million. Net income was approximately $500,000. Ended the quarter with total cash availability of $31.1 million and working capital of approximately $51 million.

David Verret stated they don't give guidance on future projections but mentioned there are initiatives being implemented across struggling entities and expect results from these initiatives in the near future.

Challenging market conditions continue to impact the Retail-Flooring and Flooring Manufacturing segments due to reduced consumer demand.

Q: Could you give color on the settlement? How it works? Is there more to it in the future? Is it a onetime thing?

A: This is a onetime thing. It involved paying off a $2.5 million seller note early at a discount and eliminating a 5-year earn-out liability, resulting in a ~$3.5 million gain.

Q: Without that, how do things look? Anticipate losses continuing? Or earnings profits?

A: They don't give guidance on future projections but mentioned initiatives are being implemented across struggling entities and expect results soon.

Q: Anything on the horizon as far as new company to be added to the portfolio?

A: There are always opportunities, but nothing hot at the moment worthy of discussing