Live Ventures Incorporated Announces 60 Percent

Increase in Revenues, 1,083 Percent Increase in Earnings

per Share and $120M in
Total Assets for its First Fiscal Quarter 2017

 

LAS VEGAS, (Feb 09, 2017) – Live Ventures Incorporated (Nasdaq:LIVE) (“Live Ventures” or the “Company”), a diversified holding company, today announces financial results for its first fiscal quarter 2017, which ended December 31, 2016.

 

The Company reported record quarterly revenue of $32.1 million, representing an increase of 60.1 percent over the same period last year, and quarterly earnings per basic share of $0.71, an increase of 1,083 percent over last year. When adding back one-time charges related to acquisition costs of Vintage Stock Inc., earnings per basic share of $0.88 increased 1,366 percent over the same period last year.

 

Key highlights of the first fiscal quarter 2017 compared to 2016 include:

·Revenue increase of 60.1 percent
·Gross profit increased by 97.3 percent
·Operating earnings were higher by 251.3 percent
·Net Income was up 711 percent
·Basic earnings per share increased by $0.65 or 1083.3 percent
·Diluted earnings per share increased by $0.32 or 640 percent

 

As of December 31, 2016, Live Ventures reported approximately $1.5 million in cash-on-hand, with an additional $12.5 million in available credit on the Company’s revolving lines of credit.

 

Total Assets for the first time exceeded $120 million. Net cash flow provided by operating activities was approximately $5.0 million for the first quarter. Working capital at December 31, 2016 was approximately $24.3 million. Stockholder’s equity increased approximately $4.8 million or 20 percent to $29 million over the prior quarter.

 

“We are thrilled with the strong results of our first quarter 2017. Revenues, profits and returns surged to record levels as a result of our core businesses and our recent acquisition of Vintage Stock, Inc.,” said Virland Johnson, CFO of Live Ventures Incorporated. “We remain focused on our current corporate strategy, as we have seen its demonstrated success. We are particularly enthusiastic regarding the exceptional returns we have achieved for our stockholders.”

 

The Company will be holding its first quarter conference call at 4:30pm Eastern Standard Time on February 9, 2017. Management will take live questions following the prepared remarks. Interested investors may participate in the conference call by dialing (888) 632-3382 (US domestic) or (785) 424-1677 (international) and providing the operator with the conference ID: LIVE VENTURES.

 

About Live Ventures Incorporated

Live Ventures Incorporated is a diversified holding company with several wholly owned subsidiaries and a strategic focus on acquiring profitable companies that have demonstrated a strong history of earnings power. Live Ventures Incorporated provides, among other businesses, marketing solutions that boost customer awareness and merchant visibility on the Internet. Its subsidiary, Marquis Industries, a specialty, high-performance yarns manufacturer, hard-surfaces re-seller, is a top-10 high-end residential carpet manufacturer in the United States. Marquis Industries, through its A-O Division, utilizes its state-of-the-art yarn extrusion capacity to market monofilament textured yarn products to the artificial turf industry. Marquis is the only manufacturer in the world that can produce certain types of yarn prized by the industry.  Most recently, the company acquired Vintage Stock, Inc., an award-winning entertainment company, featuring movies, classic and new video games, music, collectible comics and toys, and the ability to special order and ship product worldwide to the customer’s doorstep. Vintage Stock is America’s largest entertainment superstore chain. The Company also operates a deal engine, which is a service that connects merchants and consumers via an innovative platform that uses geo-location, enabling businesses to communicate real-time and instant offers to nearby consumers. In addition, it maintains, through its subsidiary, ModernEveryday, an online consumer products retailer.

 

 

 

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LIVE VENTURES INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   December 31,   September 30, 
   2016   2016 
   (Unaudited)     
Assets        
Cash and cash equivalents  $1,586,753   $770,895 
Trade and other receivables, net   8,351,502    8,334,801 
Inventories, net   32,448,126    11,053,085 
Prepaid expenses and other current assets   3,930,027    5,059,981 
Total current assets   46,316,408    25,218,762 
           
Property and equipment, net   20,094,350    14,014,501 
Deposits and other assets   75,330    19,765 
Deferred taxes   11,756,447    12,524,582 
Intangible assets, net   3,029,371    1,689,790 
Goodwill   39,066,061     
Total assets  $120,337,967   $53,467,400 
           
Liabilities and Stockholders' Equity          
Liabilities:          
Accounts payable  $9,024,776   $5,402,654 
Accrued liabilities   6,789,818    6,396,772 
Income taxes payable        
Current portion of long term debt   6,226,454    1,789,290 
Total current liabilities   22,041,048    13,588,716 
           
Notes payable, net of current portion   67,287,070    13,682,872 
Note payable, related party   2,000,000    2,000,000 
Total Liabilities   91,328,118    29,271,588 
           
Commitment and contingencies        
           
Stockholders' equity:          
Series B convertible preferred stock, $0.001 par value, 1,000,000 shares authorized, 214,244 shares issued and outstanding at December 31, 2016 and 0 shares issued and outstanding at September 30, 2016   214     
Series E convertible preferred stock, $0.001 par value, 200,000 shares authorized, 127,840 shares issued and outstanding at December 31, 2016 and September 30, 2016, liquidation preference $38,352   10,866    10,866 
Common stock, $0.001 par value, 10,000,000 shares authorized, 2,085,998 shares issued and 2,055,876 shares outstanding at December 31, 2016; 2,819,327 shares issued and 2,789,205 shares outstanding at September 30, 2016   2,086    2,819 
Paid in capital   56,705,679    53,319,217 
Treasury stock (30,122 shares)   (300,027)   (300,027)
Accumulated deficit   (27,408,969)   (28,837,063)
Total equity   29,009,849    24,195,812 
Total liabilities and equity  $120,337,967   $53,467,400 

 

 

 

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LIVE VENTURES INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

   Three Months Ended December 31, 
   2016   2015 
          
Revenues  $32,188,664   $20,104,434 
Cost of revenues   19,543,432    13,694,559 
Gross profit   12,645,232    6,409,875 
           
Operating expenses:          
General and administrative expenses   7,058,674    2,365,873 
Sales and marketing expenses   1,907,490    2,996,750 
Total operating expenses   8,966,164    5,362,623 
           
Operating income   3,679,068    1,047,252 
Other income (expense):          
Interest expense, net   (1,449,476)   (345,483)
Other income   41,890    12,553 
Total other income (expense), net   (1,407,586)   (332,930)
Income before provision for income taxes    2,271,482    714,322 
Provision for income taxes          
Current tax expense:          
Federal   30,431    353,691 
State   44,343    60,289 
Total Current tax expense   74,774    413,980 
Deferred tax expense:           
Federal   707,492     
State   60,643     
Total Deferred tax expense   768,135     
Total provision (benefit) for income taxes   842,909    413,980 
Net income   1,428,573    300,342 
Net income attributed to noncontrolling interest       124,194 
Net income attributed to Live Ventures, Incorporated  $1,428,573   $176,148 
           
Earnings per share:          
Basic  $0.71   $0.06 
Diluted  $0.37   $0.05 
           
Weighted average common shares outstanding:          
Basic   1,999,983    2,817,516 
Diluted   3,833,523    3,309,782 

 

 

 

 

 

 

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LIVE VENTURES INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

   Three Months Ended December 31, 
   2016   2015 
OPERATING ACTIVITIES:        
Net income  $1,428,573   $300,342 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:                 
Depreciation and amortization   935,047    545,832 
Amortization of debt issuance cost   40,136    4,954 
Stock based compensation expense   1,443    91,227 
Non-cash issuance of common stock for services       7,500 
Provision for uncollectible accounts   66    3,353 
Reserve for obsolete inventory   83,613    32,097 
Change in deferred taxes   768,135     
Changes in assets and liabilities:          
Accounts receivable   96,733    1,327,208 
Prepaid expenses and other current assets   1,990,407    356,751 
Inventories   (1,318,562)   182,270 
Deposits and other assets   (55,565)   55 
Accounts payable   (221,388)   632,708 
Accrued liabilities   1,246,047    (697,589)
Income tax payable       (52,020)
           
Net cash provided by operating activities   4,994,685    2,734,688 
           
INVESTING ACTIVITIES:          
Acquisition of business, net of cash acquired   (57,310,900)    
Purchases of property and equipment   (4,869,153)   (94,439)
           
Net cash used in investing activities   (62,180,053)   (94,439)
           
FINANCING ACTIVITIES:          
Net borrowings under revolver loans   14,056,099    540,354 
Payments of debt issuance costs   (1,155,000)    
Payment for the purchase of the noncontrolling interest       (1,500,000)
Proceeds from issuance of notes payable   45,889,321     
Payments on notes payable   (789,194)   (238,836)
Payments on notes payable, related party       (845,566)
Net cash provided by (used in) financing activities   58,001,226    (2,044,048)
           
           
INCREASE IN CASH AND CASH EQUIVALENTS   815,858    596,201 
           
CASH AND CASH EQUIVALENTS, beginning of period   770,895    2,727,818 
           
CASH AND CASH EQUIVALENTS, end of period  $1,586,753   $3,324,019 
           
Supplemental cash flow disclosures:          
Interest paid  $790,580   $345,483 
Income taxes paid  $   $466,000 
           
Noncash financing and investing activities:          
Conversion of accrued expense liabilities into common stock  $3,384,500   $ 
Accrued and unpaid dividends  $479   $480 
Note payable issued for purchase of noncontrolling interest  $   $500,000 

 

 

 

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Forward-Looking and Cautionary Statements

 

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  In accordance with the safe harbor provisions of this Act, statements contained herein that look forward in time that include everything other than historical information, involve risks and uncertainties that may affect the company’s actual results. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. LiveDeal, Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. There can be no assurance that such statements will prove to be accurate and there are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the company, including, but not limited to, plans and objectives of management for future operations or products, the market acceptance or future success of our products, and our future financial performance.  The company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the company’s Form 10-K for the fiscal year ended September 30, 2016, most recent Form 10-Q, and other filings with the U S. Securities and Exchange Commission (available at http://www.sec.gov). The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.

 

Contact:

Live Ventures Incorporated

Tim Matula, investor relations

425-836-9035

tmatula@live-ventures.com

http://live-ventures.com 

Source: Live Ventures Incorporated

 

 

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