Live Ventures Incorporated Q4 FY2025 earnings call

• Portfolio companies strengthened operating disciplines and optimized cost structures.
• Fiscal year 2025 marked a significant turnaround with actions like hiring new executive team at Flooring Liquidators, strategic pricing initiatives, and cost reduction measures.
• Operating income increased $10.2 million or 231.7% excluding prior year goodwill impairment.
• Adjusted EBITDA increased 36.3% compared to prior year.
• Despite softness in new home construction and home refurbishment markets, segments showed mixed performance.
• Gross profit improved due to increased margins in Retail-Entertainment, Steel Manufacturing, and Flooring Manufacturing segments, partially offset by lower margins in Retail-Flooring.
• General and administrative and selling and marketing expenses decreased due to targeted cost reduction measures.

Total revenue decreased to approximately $444.9 million for the year ended September 30, 2025, from $472.8 million prior year. Retail-Entertainment segment revenue was approximately $77.5 million, an increase of $6.5 million or 9.1% compared to prior year. Retail-Flooring segment revenue was approximately $122.3 million, a decrease of $14.7 million or 10.7% compared to prior year. Flooring Manufacturing segment revenue was approximately $121.6 million, a decrease of $11.5 million or 8.6% compared to prior year. Steel Manufacturing segment revenue was approximately $132.6 million, a decrease of $7.2 million or 5.1% compared to prior year. Gross profit increased approximately $900,000 to $145.7 million, with gross margin increasing 210 basis points to 32.7%. General and administrative expense decreased by approximately $4.3 million or 3.6% to $113.7 million. Selling and marketing expenses decreased by $5.1 million or 22.6% to $17.3 million. Adjusted EBITDA was $33.4 million, an $8.9 million or 36.3% increase compared to prior year. Total debt declined approximately $33.5 million in fiscal year 2025, and interest expense decreased by approximately $1.3 million or 7.7%. Net income was approximately $22.7 million and diluted EPS was $4.93, compared to net loss of $26.7 million and loss per share of $8.48 prior year.

• Actions taken this year position Live Ventures for continued progress.
• Focus on driving sustainable profitability and enhancing overall performance of businesses.

• Actual results could differ materially due to factors outlined in latest Forms 10-K and 10-Q as filed with SEC.

Q: With regard to the shares that are repurchased, have you ever reissued shares either in conjunction with buying a company or otherwise? Or do you have some sort of a collar or price where you'd say this is a good price to buy shares, either PE or PEG or something like that. This is a good price to buy shares. This is a good place to issue shares? Do you do it strategically like that? My second question is with regard to debt. Do you intend to pay down the debt entirely? Is there a certain debt level that you think might be reasonable to keep for the longer term? My third question is, have the interest rate reductions benefited the company in any way?

A: The first question about issuance of shares: May issue shares in connection with acquisitions, and repurchase program is fluid based on market and valuation. With regard to debt paydown: Excited about lowering debt levels, will continue to pay down, and will evaluate where money can be spent for highest return when debt is at moderate level. With regard to interest rates: There have been 3 rate cuts this year, which will improve interest expense, and interest rate deductions in the big beautiful bill will also help, and lower interest rates may stimulate housing market which benefits the company.