Live Ventures Incorporated Q3 FY2025 earnings call

· All 4 operating segments delivered improved performance in Q3 2025 with higher operating income and margin despite headwinds in new home construction and home refurbishment. · Appointed new executive leadership team for Retail-Flooring to implement cost-saving initiatives. · Gross profit increased $1.2 million or 3.4% to $38.3 million, gross margin up 410 basis points to 34%. · General and administrative expense decreased approximately $3.8 million or 12.6% to $26.3 million; sales and marketing expense decreased approximately $1.8 million or 31.5% to $4 million. · Net income was approximately $5.4 million, diluted EPS $1.24; adjusted EBITDA approximately $13.2 million, up approximately $7.1 million from prior year. · Ended Q3 with total cash availability $37.1 million, working capital approximately $65.9 million, total assets $387.5 million, stockholders' equity $94.3 million. Repurchased 12,695 shares during the quarter.

Total revenue for the quarter decreased $11.2 million or 9.2% to approximately $112.5 million. Retail Entertainment segment revenue increased $2.5 million or 15.2% to approximately $19 million. Retail-Flooring segment revenue decreased $6.6 million or 17.9% to approximately $30.4 million. Flooring Manufacturing segment revenue decreased $1.8 million or 5.7% to approximately $31.3 million. Steel Manufacturing segment revenue decreased $5.4 million or 13.8% to approximately $33.6 million. Gross profit increased $1.2 million or 3.4% to $38.3 million, with gross margin increasing by 410 basis points to 34%.

· Continued focus on operational excellence and strategic pricing actions. · No specific forward-looking guidance beyond ongoing focus on cost management and efficiency.

· Softness in new home construction and home refurbishment markets impacting Retail-Flooring and Flooring Manufacturing segments. · Volatility in steel tariffs and potential minor impact on costs. · Uncertainties in interest rates, housing market, and broader economic conditions affecting revenue.

Q: Regarding active role in flooring vs. general acquisition strategy.

A: Strategy is to keep management in place if delivering performance; will intervene if gaps exist.

Q: Acquisition focus areas.

A: Will look at anything/everything, focus on bolt-on acquisitions with strong management teams.

Q: Margin improvement outlook.

A: Still room for improvement, especially in Retail-Flooring with ongoing initiatives.

Q: Impact of tariffs on segments.

A: Minor impact so far, but diversifying vendors to mitigate risks.

Q: Revenue outlook in next 3-12 months.

A: Uncertainties due to interest rates, housing market, but positioned well; focus on efficiencies.

Q: Commercial flooring opportunities.

A: Yes, with areas like data center racking from Central Steel acquisition; also commercial and residential.

Q: Dividend consideration.

A: Not currently considering, focus on paying down debt and driving shareholder value through share price increase.