Live Ventures Clocks FY23 Revenue Growth, CFO Highlights Acquisitions as Key Driver

Live Ventures Inc (NASDAQ: LIVE) reported FY23 sales growth of 23.8% year-on-year to $355.17 million, beating the consensus of $353.6 million.

Retail Entertainment segment revenues of $78.12 million decreased by 9.3% Y/Y due to reduced demand. Retail Flooring segment revenues were $75.87 million.

Flooring Manufacturing Segment revenues of $109.77 million decreased by 16.1% Y/Y primarily due to reduced customer demand.

Steel Manufacturing Segment revenues of $88.91 million increased by 46.7% Y/Y primarily due to the acquisition of Kinetic.

EPS loss of $(0.03) missed the consensus of $2.85. 

Gross profit improved 18.1% Y/Y to $115.57 million, while the operating income for the quarter fell 40.4% to $15.45 million.

The company attributed the decrease in operating income to lower gross profit margins due to inflationary cost increases and lower operating margins primarily due to higher general and administrative expenses related to Flooring Liquidators, Kinetic, and PMW acquisitions.

Adjusted EBITDA for the quarter increased 8.3% to $9.6 million, primarily due to the acquisitions of Flooring Liquidators and Kinetic.

As of September 30, 2023, the company had a total cash availability of $37.1 million.

"During fiscal year 2023, revenues increased 23.8%, largely driven by the strategic acquisitions of Flooring Liquidators and PMW acquired during fiscal year 2023 and The Kinetic Co., Inc. ("Kinetic") acquired in late fiscal year 2022, together contributed in excess of $115 million in revenue and approximately $8.5 million in Adjusted EBITDA," commented David Verret, CFO of Live Ventures.

The FY24 revenue consensus is $421 million. The stock has lost 21% year-to-date.

Price Action: LIVE shares are trading higher by 1.50% at $25.70 on the last check Wednesday.