Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.20.1
Segment Reporting
6 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting

Note 16:

  Segment Reporting

The Company operates in three segments which are characterized as: (1) Manufacturing, (2) Retail and Online, and (3) Services. The Manufacturing Segment consists of Marquis Industries, the Retail and Online segment consists of Vintage Stock and ApplianceSmart, and the Services segment consists of the directory services business.

The following tables summarize segment information for the three and six months ended March 31, 2020 and 2019:

 

 

 

For the Three Months Ended March 31,

 

 

For the Six Months Ended March 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail and Online

 

$

18,986

 

 

$

25,748

 

 

$

40,474

 

 

$

56,392

 

Manufacturing

 

 

27,301

 

 

 

21,062

 

 

 

47,668

 

 

 

43,445

 

Services

 

 

144

 

 

 

163

 

 

 

290

 

 

 

332

 

 

 

$

46,431

 

 

$

46,973

 

 

$

88,432

 

 

$

100,169

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail and Online

 

$

10,334

 

 

$

12,742

 

 

$

21,454

 

 

$

26,318

 

Manufacturing

 

 

7,308

 

 

 

5,755

 

 

 

12,676

 

 

 

11,357

 

Services

 

 

133

 

 

 

154

 

 

 

271

 

 

 

313

 

 

 

$

17,776

 

 

$

18,651

 

 

$

34,402

 

 

$

37,988

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail and Online

 

$

237

 

 

$

(129

)

 

$

1,183

 

 

$

(368

)

Manufacturing

 

 

2,698

 

 

 

2,021

 

 

 

5,101

 

 

 

4,193

 

Services

 

 

132

 

 

 

154

 

 

 

270

 

 

 

312

 

 

 

$

3,068

 

 

$

2,046

 

 

$

6,555

 

 

$

4,137

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail and Online

 

$

342

 

 

$

882

 

 

$

991

 

 

$

1,671

 

Manufacturing

 

 

888

 

 

 

610

 

 

 

1,486

 

 

 

1,304

 

Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,231

 

 

$

1,492

 

 

$

2,477

 

 

$

2,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail and Online

 

$

830

 

 

$

1,120

 

 

$

1,797

 

 

$

2,296

 

Manufacturing

 

 

440

 

 

 

416

 

 

 

830

 

 

 

893

 

Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,270

 

 

$

1,536

 

 

$

2,627

 

 

$

3,189

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) before provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail and Online

 

$

873

 

 

$

(1,333

)

 

$

(403

)

 

$

(2,605

)

Manufacturing

 

 

2,116

 

 

 

1,854

 

 

 

3,996

 

 

 

5,066

 

Services

 

 

132

 

 

 

154

 

 

 

270

 

 

 

312

 

 

 

$

3,121

 

 

$

675

 

 

$

3,863

 

 

$

2,773

 

 

Chapter 11 Filing of ApplianceSmart, Inc.

On December 9, 2019, ApplianceSmart filed a voluntary petition (the “Chapter 11 Case”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) seeking relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). The bankruptcy affects Live Ventures’ indirect subsidiary ApplianceSmart only and does not affect any other subsidiary of Live Ventures, or Live Ventures itself.  As part of the Chapter 11 process, ApplianceSmart expects to work with its lenders and creditors to restructure and or settle secured and unsecured indebtedness.  

ApplianceSmart expects to continue to operate its business in the ordinary course of business as debtor-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. In addition, the Company reserves its right to file a motion seeking authority to use cash collateral of the lenders under the reserve-based revolving credit facility.

The case is being administrated under the caption In re: ApplianceSmart, Inc. (case number 19-13887). Court filings and other information related to the Chapter 11 Case are available at the PACER Case Locator website for those registered to do so or at the Courthouse located at One Bowling Green, Manhattan, New York 10004.

The Company will continue to consolidate ApplianceSmart as ApplianceSmart remains under the control of management and not the Bankruptcy Court. ApplianceSmart maintains its ability to operate under the normal course of business throughout the bankruptcy proceedings. The Company will continue to evaluate any triggering events that indicate a loss of control that may result in deconsolidation.