Live Ventures Post 30% Hike In Q2 Sales As Acquisitions Boost

Live Ventures Inc LIVE reported second-quarter FY24 sales growth of 30.2% year-on-year to $118.626 million, beating the analyst consensus estimate of $105 million.

“Our second quarter revenue increased 30.2% compared to the prior year period, primarily driven by the strategic acquisitions of Flooring Liquidators, Inc. (“Flooring Liquidators”), and Precision Metal Works, Inc. (“PMW”), both of which were acquired in fiscal year 2023, as well as an increase in revenue in our Flooring Manufacturing segment,” said CFO David Verret.

Gross profit increased 12.2% to $35.5 million with a margin of 30%. Operating expenses for the quarter jumped 36.2% to $36.3 million.

The company incurred an operating loss of $(838,000) compared to an operating income of $4.9 million. The decrease in operating income is primarily attributable to the Retail-Flooring segment’s temporary inefficiencies associated with the acquisitions of Carpet Remnant Outlet, Inc. and Johnson Floor & Home by Flooring Liquidators.

Adjusted EBITDA declined 51% Y/Y to $4.5 million with an adjusted EBITDA margin of 3.8%. EPS of $(1.04) missed the analyst consensus estimate of $1.50.

The company repurchased 11,849 shares of its common stock at an average price of $25.16 per share in the quarter. Live Ventures held $4.5 million in cash and equivalents as of March-end.

Jon Isaac, President and Chief Executive Officer of Live Ventures, said, “Despite industry-specific headwinds, we are committed to adapting to market changes, maintaining operational efficiency, and enhancing customer satisfaction.”

Price Action: LIVE shares are trading higher by 1.09% at $25.95 at the last check Monday.

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