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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 (GLOBE NEWSWIRE) -- 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. 

/EIN News/ -- 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.

LIVE VENTURES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
       
  December 31,
2016
  September 30,
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  
       
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

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  
       
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

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  
       
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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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