Live Ventures (LIVE) 9 Feb 232023 Q1 Earnings call transcript

Good day, everyone, and welcome to the First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. Later you will have an opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note, this call maybe recorded.

It is now my pleasure to turn today's program over to Greg Powell, Director of Investor Relations. ahead. go Please,

Good Ventures Gretchen. and to welcome Thank XXXX afternoon, first Live fiscal quarter the you, everyone, conference call.

afternoon Officer Verret, Joining our Chief Operating and this for are our call us Jon Eric Chief Althofer, Executive Chief and our David Officer. President; Financial Officer; the Isaac,

the forward-looking material The of XX-Q, of of as our forms, number Some are we statements due actual on outlined based see latest Commission. the are we are the today. results as Securities businesses differ could our to today them those our including making and best with factors, Exchange filed view and in and XX-K

events, no whether or otherwise. changes after We to any update this obligation as forward-looking of call, result statements future in have a assumptions publicly information, new

our to XX-Q Web www.liveventures.com Live Web the this can referenced section Investor you press Ventures or the for You historical and direct on our Relations will release SEC in call filings. our of www.sec.gov site site. I find

will I call to David financial to through over our walk performance. turn now the

of $XX challenging and of Greg, delivered the adjusted company $X.X million of in income revenue, everyone. $X.X EBITDA, spite Overall, you, good in environment. million afternoon, economic net Thank million and a

flooring of our maximize stockholder acquisition our we strategic value. by plan evidenced continue to execute liquidators, buy-build-hold As multi-level to

In of XX,XXX the our shares addition, repurchased quarter. we common stock during

discuss Liquidators acquisition Flooring in let's that the Before briefly we numbers, into jump announced January. the we

Flooring acquisition. the excited are We about Liquidators very

and consumers, retailer leading and a is of California carpets countertops Liquidators installer Nevada. builders Flooring floors, and contractors in and to

home for in established they efficiency years reputation renovation and improvement the have the and Over market. innovation, strong service a

a our Live and issuance approximately representing X.XX% common at of diluted $XX XXX,XXX of through combination cash, of debt of valued the fully stock. dilution transaction stock, a common shares Ventures million was The financed

year. Liquidators a add XXX of stream approximately Flooring new million is expectation significant revenue that, per Our will

look forward are beginning next Liquidators' and with results mobile to Flooring We you strong reports. divisions, in sharing all with growth franchise We store believe builder retail model. the there opportunities our three of earnings

the for our financial compared discuss year down in lower is corporate and quarter Now, in revenue X.X%, results other in I decreased quarter. the Total million decrease flooring first to The XX.X revenues first prior for the to will revenues manufacturing, retail due period. to XX as million, segments. the and

compared Flooring a $XX.X period. as manufacturing decrease approximately revenues due of prior decreased primarily million to economic general year as XX.X% $X.X of or is the reduced million conditions. to The demand result

decrease the result demand chain million mix. inflationary approximately sales million period. year $XX.X The primarily of product prior compared revenues decreased is of X.X the overall in the to pressures, Retail XX.X% reduced issues supply or as to due

as of Steel and approximately manufacturing period. decreased decreased at increased revenues Corporate SW to revenues Financial. the million million $X.X to year or kinetic. compared million due approximately revenues $X.X of the $XX acquisition XX.X% due segment other partly primarily prior the to

is primarily Gross XX.X% $XX.X company the down period. year. our in Flooring This segments. margin from in and due profit year million margins prior the to for XX.X% the $XX.X decrease the was for percentage in the gross decreased million, from The prior to tightening Steel quarter

raw Flooring This demand. manufacturing year. due decrease prior was decreased to profit compared lower to increases in to XX.X% XX.X% segments gross as margin in primarily cost the material and

primarily decrease raw costs compared as prior increases XX.X% as due profit of The as Kinetic. as in margin period. profit Retail manufacturing material segments in to product the increase fluctuations profit primarily at Steel to year margins, the compared XX.X% well XX.X% mix. to increased to in segments year. due margin in in decreased the XX.X% to is gross prior The gross acquisition

decreases acquisition $XX.X X.X% prior is year in offset due the period. and The to professional by increased million the by fees expense general administrative primarily and as administrative increase expenses. kinetic, to and to General approximately compared other partially of

to decrease activity primarily and Selling prior expense $X.X as compared by our flooring in to period. year trade related million probably to segment. the show X% due is convention approximately to manufacturing and decreased The marketing a decrease

decreased of increases. XXXX quarter $X.X a to of income as the million operating million profits decrease is gross attributable period. $XX.X for inflationary the The compared year income lower primarily Operating to in first in to result prior costs as

result million First primarily quarter increase interest due expense year period. to compared as prior Kinetic The increased and to balances increased acquisition is interest increased a as approximately of $X the debt rates. the

income in XX the compared million for year net as per X.X period. quarter in million as Quarter per quarter compared decrease prior Diluted period. adjusted as prior net share was a period. was was million of cents $X.X share for to to first $X.X year first EPS million, year the to income $X.X prior approximately the compared of EBITDA And $X.XX the the

of of quarter liquidity total ended to for cash first $XX.X of lines and Turning various combined our under our $XX we credit a with liquidity, cash million million of availability million. $XX.X

our I like highlight would low of leverage. level to

in As end first months shares purchasing of our times. making while new in businesses months, two EBITDA was businesses. a last last to ratio adjusted of debt and We XX XX quarter, leverage, the of X.X capital the maintained our repurchasing our significant net low investments level

of $XX.X $XX.X XX, XX, We million million as have approximately to XXXX. December XXXX, working September as capital of of compared as

September increased $XXX.X XXXX. compared of increased million to XX, million. $XXX.X million as to $X.X million assets stockholders' Total total $XX.X In as equity

strategy, our from capital believe share time our time. long-term As our to part may value of We make repurchases repurchases represent for stockholders. stock we allocation

XXXX. repurchase As company the previously disclosed, million stock announced in XX a common plan

XX,XXX shares first the of repurchased price share. quarter, per of approximately average an $XX.XX at During common stock we

company XX, this under $X.X had December for the program. repurchases million of approximately available As

significant macroeconomic value. we while create continue capital long disciplined headwinds, term to focused, to manner are we deploy conclusion, smart, stockholder face we positioned a In in continue well believe our to to

from Operator, We line will on questions the call. of questions. those now take open conference you the please for

question Litchfield Research. O'Neill floor the open first we time, questions. comes Theodore our And for will [Operator Hills with Instructions] this from At

Hi.

Hello.

Theodore. Hi,

segments congratulations the do Yeah. inflation quarter Well quarter good this despite abatement flooring segment, guys. of retail the issues and sided the that Hi, here. a here February? on see now we're in quarter, issues for Last and that Sorry. any as you both

some funnel that, to in seeing time for and it's it be able margins. but through, really some going abatement start believe up take we are just to We our to driving

remarks you And revenue over how about coming you flow kind guidance the to the prepared give talked might your any as quarters acquisition, I know flooring the in in is of the us there subsequent beginning, can up? at

just that. so noted mean, We don't – of have we that, million I around expect kind give prorate would guidance I XXX but we per on year,

a start. great it's think I

Okay. That's fine.

that in the here it was figures of end the the None the quarter. because Flooring reflect Liquidators, you of after see queue anything from purchased

Understood.

revenues should flowing could be more, could and you less Flooring release from quarter, put about our level a next we just number. press than Liquidators, in that we be So billion here, see high XXX expect

the – Okay. Thanks, go or – would next manufacturing that guys. that that make few to seasonality business is revenue segment there. In maybe steel would here? Is that any there to up quarters quarter

I the but significantly in don't not there's so. think moderate steel segment. seasonality No,

much. very Thanks Okay.

Thanks, Theodore.

next question [Operator from Kowalsky. Instructions] take Joseph We'll our

I you. you for and have Thank gentlemen the quarter. thank Hi, several good work questions. and hard

share time. than taking my So that's more fair all just If me stop up of if right. I'm

Go ahead.

First one.

are new the to I'm the for understand one a asset the increase is mean, in that we I First just dilution an compared I getting dilution. value. not want accountant. to asset And

of So part it the that share the that that each become owns like asset has portfolio? after stockholders the mean is given some Does more sounds equity new that up. even actually dilution,

the That we I How dilution is number add representative that so and did what and it's connection is no of say – just are outstanding. of that to with strictly shares percentage shares of issued just there's deal in the overall. the – many would that number that we

share the understand. That that asking I the owns, you assets that given is up, understand. did new… That go I'm I actual that each What

Yes, so at yes, have that. that that XX we'll have noticed roughly million, assets. million valued of towards we know, will XX We've allocate that you – assets it's we're additional also

right. My it? Got is… next question All

accretive an is… word It deal. The for looking you're is

That’s yes. I Thank what for… looking you, exactly

Deal there's very what disclosed. issuance for X million small at for a the share around shareholders because we valued

the you will in hopefully cash rising return share be So then the shareholders future per you flows see and hitting, equity will see higher. equity, the future, will

Thank out you was compared was a I looking was for. looking I a the pulling that. I first I I on year? correct you make use what that that is to word I year I It's the sure And That for what read but Why for. just elucidation. from appreciate to appreciate calendar fiscal when it. wanted do it, thought I

a Gosh, we've while. been X/XX at for on always

honestly… So

know… just is Is I a because there you have? benefit the or mean, just is company? I don't there a you know, to detriment,

are question, that Good listed. fiscal of companies of XX/XX not have and them. Many ends of year There's plethora a lots There's that Joe. companies lots

is Apple using or think I June something. XX

I know.

that an they're answer good that. busy don't there's actual that's I I no not real I for doing You times, there's when know, reference. that think prefer because their our auditors super slower XX/XX so we're think mean,

Okay. didn't not. there business All right. That's or was and was why if that's a fine. just I know benefit it done

Okay, headwinds. you mentioned macroeconomic

that wondered in just particular of areas mentioned more expected in in another's? – your if subsidiaries You or and you all it both than areas, that's I in all

different the to I macroeconomic is to but that. Yeah, conditions I mean, really going everyone believe impact levels.

respect of the to the flooring. kind manufacturing interest I which that they've it just particularly demand housing for got think of right flooring, rates with the kind more market we're side, with impact issue seeing will now in increase and of on

guess what know last I purchases so buy Whitney, total fit you. you've the the to several Whitney. I you with actually, first still one, the all. outstanding? it decide management? place? that Thank my them I made. assets that the in And Salomon is made made through other under then to shares What relating question, there are don't questions it And of Salomon remainder you go seems after their to I Number planning are guess, them to

Yes, yes, bunch so in -- there. of a questions

alternatives of the what most to terms of terms the and go makes the shares. ownership remainder strategic of sense we in In plan, assess continue forward review the

the what in was a acquisition liked place, growth. opportunity first saw accretive In for it of we and terms we lot an of

We to invest we have new up historically think like we for provides while attractive ability and able opportunity. manufacturing an to we investment. invest ROI make look So liked on that through acquisitions grow to businesses, continue and focused be open we in and look the there. to asset and to offices further, the been continue always And more intensive

their as far assets currently? as under And management total

earnings that know try the I hasn't next to for off top disclosed. I don't look I have it quarterly of But been the my head. number call. can that certainly

on And brokerage, that was about them, -- still last you that. I asked or I the a I mentioned time is, then it if and question on you smaller focus last case? that's were the appreciate if about wonder RIA them changing that's they

and And No. It's on I misspoke. on and -- in entirely RIA. the fact, not BD I

actually that you because bring misstatement. appreciate was a So up, that

BD sorry, you're RIA, saying, I entirely I'm not hear it's did correctly?

That Correct. is correct.

that considering way, is RIA? to And stay intended that

but on the BD, Again, continuing to is entirely broker dealer. at look focus the opportunities, the all on current

Okay. Thank you very much.

this Appears no further we have at time. questions

the Okay, Thanks. to joining us great. later. Thanks to We on forward speaking you call. for look

And conference. you, gentlemen, and thank ladies this conclude today's does

disconnect. now may You