Live: Press Release Financial Results

The following excerpt is from the company's SEC filing.

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) – 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.

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 shar e 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

September 30,

(Unaudited)

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

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

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

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

Paid in capital

56,705,679

53,319,217

Treasury stock (30,122 shares)

(300,027

Accumulated deficit

(27,408,969

(28,837,063

Total equity

29,009,849

24,195,812

Total liabilities and equity

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended December 31,

32,188,664

20,104,434

Cost of revenues

19,543,432

13,694,559

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

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

44,343

60,289

Total Current tax expense

74,774

413,980

Deferred tax expense:

707,492

60,643

Total Deferred tax expense

768,135

Total provision (benefit) for income taxes

842,909

Net income

1,428,573

300,342

Net income attributed to noncontrolling interest

124,194

Net income attributed to Live Ventures, Incorporated

176,148

Earnings per share:

Weighted average common shares outstanding:

1,999,983

2,817,516

3,833,523

3,309,782

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

OPERATING ACTIVITIES:

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

Stock based compensation expense

91,227

Non-cash issuance of common stock for services

Provision for uncollectible accounts

Reserve for obsolete inventory

83,613

32,097

Change in deferred taxes

Changes in assets and liabilities:

Accounts receivable

96,733

1,327,208

1,990,407

356,751

(1,318,562

182,270

(55,565

(221,388

632,708

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

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

2,727,818

CASH AND CASH EQUIVALENTS, end of period

3,324,019

Supplemental cash flow disclosures:

Interest paid

790,580

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

Note payable issued for purchase of noncontrolling interest

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 

). 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:

Tim Matula, investor relations

425-836-9035

tmatula@live-ventures.com

http://live-ventures.com 

Source: Live Ventures Incorporated

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

Major owner of Live Ventures just picked up 500 shares - June 26, 2017

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