LIVE VENTURES Inc Q4 FY2024 earnings call

• Total revenue increase due to acquisitions of Flooring Liquidators, PMW, and Central Steel, offset by some business decreases. - Retail-Flooring segment had goodwill impairment charge of $18.1 million due to economic conditions. - Implemented cost-cutting measures in Flooring Retail and Steel Manufacturing segments. - Companies often approach Live Ventures due to its reputation and long-term approach to ownership.

Total revenue for fiscal year ended September 30, 2024 increased 33.1% to approximately $472.8 million. Retail-Entertainment segment revenue decreased $7.1 million or 9.1% to approximately $71 million. Retail-Flooring segment revenue increased $61.1 million or 80.6% to approximately $137 million. Flooring Manufacturing segment revenue increased $15.2 million or 13.8% to approximately $125 million. Steel Manufacturing segment revenue increased $50.7 million or 57% to approximately $139.6 million. Gross profit was approximately $144.8 million, gross margin percentage decreased to 30.6%. General and administrative expense increased approximately $31.4 million. Sales and marketing expense increased approximately $8.9 million. Net loss was approximately $26.7 million. Adjusted EBITDA was approximately $24.5 million.

• Focus on cost-cutting measures to address industry-specific economic headwinds. - Confidence in long-term buy, build, hold strategy despite current challenges.

• PMW was in default of a financial covenant, with long-term debt reclassified to current liabilities. - Economic conditions affecting Retail-Flooring and Steel Manufacturing segments, impacting operating results.

Q: Inquired about general and administrative expense increase and cost-cutting measures.

A: Did cost-cutting, efficiency studies in Flooring Retail and Steel Manufacturing, with expected impact in future years.

Q: Asked about method to find companies to acquire.

A: Companies approach due to reputation, agnostic to industry, look for mid-market profitable companies.

Q: Questioned about PMW's financial covenant default.

A: Breach was post-acquisition, related to fixed charge ratio covenant, working with banks to resolve.