Live Ventures Incorporated 2024 10-K Review

Introduction

Live Ventures Incorporated, a diversified holding company, has recently released its 10-K filing for the fiscal year ending September 30, 2024. This document provides a comprehensive overview of the company's operations, financial performance, and strategic direction. In this review, we will delve into the key aspects of the 10-K filing, including the business description, financial performance, risk factors, and overall investment potential.

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Business Description

Live Ventures operates as a diversified holding company with a strategic focus on value-oriented acquisitions of domestic middle-market companies. The company's acquisition strategy is industry-agnostic, focusing on well-run, closely held businesses with a track record of earnings growth and cash flow generation. Live Ventures' current portfolio includes companies in the textile, flooring, tools, steel, and entertainment industries.

Segments

1. Retail-Entertainment Segment: This segment includes Vintage Stock, Inc., a specialty entertainment retailer with 73 storefronts across the U.S. Vintage Stock offers a wide range of entertainment products, including movies, video games, and music products.
2. Retail-Flooring Segment: Flooring Liquidators, Inc. is a leading retailer and installer of flooring, carpeting, cabinets, and countertops. The company operates 25 warehouse-format stores and design centers.
3. Flooring Manufacturing Segment: Marquis Industries, Inc. is a leading carpet manufacturer and distributor of carpet and hard-surface flooring products.
4. Steel Manufacturing Segment: Precision Industries, Inc. and its subsidiaries are involved in the production of industrial knives, hardened wear products, and specialized fabricated metal products.
5. Corporate and Other Segment: This segment includes certain corporate general and administrative costs and operations of certain legacy products and service offerings.

Financial Performance

Revenue

For the fiscal year ended September 30, 2024, Live Ventures reported total revenue of approximately $472.8 million, an increase of $117.7 million compared to the previous year. The growth was primarily driven by the Retail-Flooring and Steel Manufacturing segments.

Net Loss

The company reported a net loss of approximately $26.7 million for the year, compared to a net loss of $102,000 in the previous year. The loss was primarily due to a goodwill impairment charge of $18.1 million related to the Retail-Flooring segment.

Adjusted EBITDA

Adjusted EBITDA for the year was approximately $24.5 million, a decrease of $7.1 million from the previous year. The decline was mainly due to reduced operating income across several segments.

Cash Flow

Live Ventures generated approximately $20.6 million in net cash from operating activities, a decrease from $26.0 million in the previous year. The decrease was primarily due to an increase in net loss and changes in working capital.

Risk Factors

The 10-K filing outlines several risk factors that could impact the company's performance, including:

• Fluctuations in demand for products and services.
• Changes in economic conditions and consumer spending.
• Competition in the flooring and entertainment industries.
• Dependence on key customers and suppliers.
• Legal proceedings, including an ongoing SEC investigation.

Investment Potential

Live Ventures' diversified portfolio and strategic acquisition approach provide a solid foundation for growth. However, the company's recent financial performance, particularly the net loss and goodwill impairment, raises concerns about its short-term profitability. The ongoing SEC investigation also adds a layer of uncertainty.

Investment Score: 6.5/10

While Live Ventures has potential for growth, investors should be cautious and consider the risks associated with the company's current financial challenges and legal proceedings.

Conclusion

Live Ventures Incorporated's 2024 10-K filing provides valuable insights into the company's operations and financial performance. While the company has demonstrated growth in revenue, the net loss and ongoing legal issues present challenges that need to be addressed. Investors should weigh these factors carefully when considering an investment in Live Ventures.