Breaking Down Live Ventures Incorporated (LIVE) Financial Health: Key Insights for Investors

Are you keeping a close watch on Live Ventures Incorporated (LIVE) and wondering about its financial stability? Did you know that in fiscal year 2024, the company's revenue surged by 33.1%, reaching $472.8 million, compared to $355.2 million the previous year? But, with a net loss of $26.7 million, how should investors interpret these figures? Dive in to explore a detailed breakdown of LIVE's financial health, uncovering key insights for informed investment decisions.

Live Ventures Incorporated (LIVE) Revenue Analysis

Understanding Live Ventures Incorporated's revenue streams is crucial for investors seeking to assess the company's financial health and future prospects. A detailed breakdown of revenue sources, growth rates, and segment contributions provides valuable insights.

Live Ventures Incorporated, a diversified holding company, reported a significant increase in revenue for the fiscal year 2024. The company operates in five segments:

• Retail-Entertainment
• Retail-Flooring
• Flooring Manufacturing
• Steel Manufacturing
• Corporate and Other

Here's a breakdown of Live Ventures' revenue streams based on the 2024 fiscal year:

Primary Revenue Sources:

• The company's revenue is generated through its various business segments, including retail entertainment, retail flooring, flooring manufacturing, and steel manufacturing.
• The Retail-Entertainment segment offers a range of entertainment products, such as movies, video games, music, books, comics, toys, and collectibles.

Year-over-Year Revenue Growth:

• Live Ventures reported a 33.1% increase in revenue for fiscal year 2024, with revenue reaching $472.8 million compared to $355.2 million in the prior year.

Segment Contribution:

• In the first quarter of fiscal year 2025, the Retail-Entertainment segment saw a revenue increase of 3.3%, reaching approximately $21.3 million, driven by higher consumer demand for used products.

Key Financial Data (Fiscal Year Ended September 30, 2024):

Significant Changes in Revenue Streams:

• In the first quarter of fiscal year 2025, total revenue decreased by approximately 5.2% to $111.5 million, compared to $117.6 million in the prior year period.
• The Steel Manufacturing segment experienced substantial revenue growth, primarily due to increased revenue at PMW (Precision Metal Works) and Central Steel.
• The Retail-Flooring and Flooring Manufacturing segments were impacted by industry-specific challenges, including high interest rates and a slowdown in the housing market.
• The closure of SW Financial in May 2023 led to a decrease in revenue for the Corporate and Other segment.

For more insights into Live Ventures' mission, vision, and core values, visit: Mission Statement, Vision, & Core Values of Live Ventures Incorporated (LIVE).

Live Ventures Incorporated (LIVE) Profitability Metrics

Understanding Live Ventures Incorporated's profitability involves examining several key metrics that reflect the company's financial health and operational efficiency. By analyzing gross profit, operating profit, and net profit margins, investors can gain valuable insights into the company's ability to generate earnings.

Here's an overview of the essential profitability metrics:

• Gross Profit: This is the revenue remaining after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: This is the profit earned from business operations after deducting operating expenses such as wages, depreciation, and administrative costs.
• Net Profit: This is the profit remaining after all expenses, including interest and taxes, have been deducted from total revenue. It represents the actual profit available to the company's owners or shareholders.

Analyzing trends in these profitability metrics over time provides a clearer picture of Live Ventures Incorporated's financial performance. Comparing these ratios with industry averages helps to benchmark the company's efficiency and profitability against its peers. A detailed examination of cost management and gross margin trends further illuminates the company's operational effectiveness. For instance, improvements in gross margin may suggest better cost control or more efficient production processes.

Here's a hypothetical example of how these metrics might be presented in a comparative analysis:

In this example, Live Ventures Incorporated shows a positive trend in all three profit margins from 2022 to 2024. While the company is approaching the industry average, further analysis would be needed to understand why it is slightly below the average and what steps could be taken to improve these margins.

More in-depth information can be found here: Breaking Down Live Ventures Incorporated (LIVE) Financial Health: Key Insights for Investors

Live Ventures Incorporated (LIVE) Debt vs. Equity Structure

Understanding how Live Ventures Incorporated (LIVE) finances its growth involves analyzing its debt and equity structure. This includes examining the levels of long-term and short-term debt, the debt-to-equity ratio, and any recent debt-related activities.

Here's a breakdown of Live Ventures' debt versus equity:

• Overview of Debt Levels

As of December 2024, Live Ventures had $149.6 million in debt, which is approximately the same as the year before. This debt is offset by $7.41 million in cash, resulting in a net debt of about $142.2 million.

• The company's balance sheet shows liabilities of $121.5 million due within a year and $200.8 million due beyond that.
• To offset these liabilities, Live Ventures has $7.41 million in cash and $38.0 million in receivables due within 12 months.
• The company's liabilities exceed its cash and short-term receivables by $276.8 million.

• Debt-to-Equity Ratio

The company's debt-to-equity ratio is a critical metric for assessing financial risk. According to one source, the debt-to-equity ratio is 1.4. Another source indicates a debt-to-equity ratio of 3.44. As of December 31, 2024, Live Ventures had total shareholder equity of $73.3 million and total debt of $149.6 million, resulting in a debt-to-equity ratio of 204.2%.

Compared to industry standards, it is important to consider that the P/B ratio of Live Ventures Incorporated (LIVE) is 0.36 times as on 11-Apr-2025, a 92% discount to its peers' median range of 4.62 times.

• Recent Debt Issuances, Credit Ratings, or Refinancing Activity

Live Ventures has been actively managing its debt through renegotiation. A recent debt restructuring involved a potential increase of $19 million if the company defaults on the revised note or fails to make required payments.

• Balancing Debt Financing and Equity Funding

The company's ability to service its debt is crucial. Live Ventures' earnings before interest and tax (EBIT) have significantly decreased, tanking 89% over the last 12 months. The company's weak interest cover of 0.097 times and a high net debt to EBITDA ratio of 7.5 raise concerns about its debt management capabilities.

In fiscal year 2024, Live Ventures reported a net loss of $26.7 million, with a loss per share of $8.48. This increase in net loss is primarily due to a goodwill impairment charge in the Retail-Flooring segment, lower operating income, and higher interest expenses.

Here is a table summarizing key financial data for fiscal year 2024:

For more insights into Live Ventures Incorporated's (LIVE) financial health, you can read this comprehensive analysis: Breaking Down Live Ventures Incorporated (LIVE) Financial Health: Key Insights for Investors

Live Ventures Incorporated (LIVE) Liquidity and Solvency

When evaluating Live Ventures Incorporated (LIVE), assessing its liquidity and solvency is crucial for investors. These metrics provide insights into the company's ability to meet its short-term and long-term obligations. Let's delve into key financial indicators that shed light on the company's financial health.

Assessing Live Ventures Incorporated's Liquidity:

Analyzing LIVE's liquidity involves examining its current and quick ratios, working capital trends, and cash flow statements. These components help determine if the company can cover its immediate liabilities.

• Current and Quick Ratios: These ratios measure a company's ability to pay off its short-term liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventory from current assets.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) provides insights into the operational efficiency and short-term financial health of the company.
• Cash Flow Statements Overview: A review of the cash flow statements, specifically focusing on operating, investing, and financing activities, offers a clear picture of how Live Ventures Incorporated generates and uses cash.

Cash Flow Analysis:

A comprehensive analysis of Live Ventures Incorporated's cash flow statements is essential. This analysis is typically divided into three main sections:

• Operating Activities: This section reflects the cash generated or used from the company's core business operations. Positive cash flow from operations indicates that the company is effectively generating cash from its primary activities.
• Investing Activities: This includes cash flow related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E). These activities can provide insights into the company’s growth strategy and capital expenditures.
• Financing Activities: This section covers cash flow related to debt, equity, and dividends. Monitoring these activities helps understand how the company is funding its operations and managing its capital structure.

Potential Liquidity Concerns or Strengths:

By evaluating these metrics, investors can identify potential liquidity concerns or strengths. For example, a declining current ratio or negative operating cash flow might signal liquidity issues, while a strong cash position and increasing working capital could indicate financial stability.

For more insights into investor behavior and company performance, consider reading: Exploring Live Ventures Incorporated (LIVE) Investor Profile: Who’s Buying and Why?

Live Ventures Incorporated (LIVE) Valuation Analysis

Determining whether Live Ventures Incorporated (LIVE) is overvalued or undervalued requires a multifaceted approach, incorporating several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield, payout ratios (if applicable), and analyst consensus.

Currently, comprehensive real-time data for these specific valuation metrics of Live Ventures Incorporated is not available. Accessing such detailed information typically involves consulting financial data providers like Yahoo Finance, Bloomberg, or reputable financial analysis platforms. These sources offer up-to-date ratios, historical stock prices, dividend information, and analyst ratings, which are essential for a thorough valuation analysis.

To perform an in-depth valuation, consider the following:

• Price-to-Earnings (P/E) Ratio: Compare LIVE's P/E ratio to its industry peers and historical P/E ratios to gauge whether the stock is trading at a premium or discount relative to its earnings.
• Price-to-Book (P/B) Ratio: This ratio helps assess whether the stock price is reasonable compared to the company's book value. A lower P/B ratio might suggest undervaluation, but it should be considered in conjunction with other factors.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio provides a valuation measure that is independent of capital structure and accounting practices. It’s useful for comparing LIVE to other companies, especially in the context of potential acquisitions.
• Stock Price Trends: Analyze the stock's performance over the past 12 months (or longer) to identify trends, volatility, and potential support and resistance levels.
• Dividend Yield and Payout Ratios: If LIVE pays dividends, evaluate the dividend yield relative to other dividend-paying stocks and the company’s payout ratio to assess the sustainability of dividend payments.
• Analyst Consensus: Review analyst ratings (buy, hold, or sell) and price targets to understand market sentiment and expectations for the stock.

Without current specific figures, a general valuation assessment can be outlined as follows. Please note that this is an illustrative example, and current real-world data may differ significantly.

Keep in mind that a comprehensive valuation should also consider qualitative factors such as the company’s management, competitive position, and overall industry outlook. For additional insights into the company's strategic direction, see Mission Statement, Vision, & Core Values of Live Ventures Incorporated (LIVE).

Live Ventures Incorporated (LIVE) Risk Factors

Live Ventures Incorporated (LIVE) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, operational challenges, financial constraints, and strategic execution.

Industry Competition: The company operates in several competitive industries, including retail, flooring, steel manufacturing, and entertainment. Intense competition in these sectors can pressure profit margins and limit growth opportunities. The flooring industry, in particular, is subject to competitive and cyclical factors.

Regulatory Changes: Compliance with federal and state employment and labor laws poses ongoing regulatory risks, potentially increasing operational costs. Changes in governmental regulations and oversight can also affect business segments.

Market Conditions: Challenging market conditions in the Retail-Flooring and Steel Manufacturing segments have adversely affected operating results. Fluctuations in interest rates, due to floating rate credit facilities, could increase borrowing costs and negatively impact profitability. Additionally, changes in foreign tariffs and trade policies could impact the steel manufacturing segment.

Operational Risks:

• Integration of Acquired Businesses: Effectively managing growth and integrating acquired businesses poses a significant operational risk, potentially straining management and financial resources.
• Data Breaches: The potential for data breaches could harm the company's reputation and financial results.
• Supply Chain Disruptions: In the flooring manufacturing segment, geopolitical tensions and natural disasters could disrupt supply chains, impacting raw material availability and costs.

Financial Risks:

• Access to Capital: Continued growth through acquisitions will likely require access to capital through issuing debt or equity, which could dilute existing stockholders. Securing financing on favorable terms remains a concern, especially given the current interest rate environment.
• Liquidity: Maintaining sufficient liquidity to fund operations and meet contractual obligations is crucial. As of September 30, 2024, Live Ventures had a working capital of approximately $52.3 million and total cash and borrowing availability of approximately $33.3 million.
• Debt Obligations: Renegotiating debt obligations and managing debt levels are ongoing financial risks. In March 2025, Live Ventures renegotiated its debt, reducing the outstanding principal amount from $34 million to $15 million related to the acquisition of Flooring Liquidators.

Strategic Risks:

• Acquisition Strategy: The company's acquisition strategy involves risks, and there is no assurance that acquired companies will achieve expected levels of revenue, profitability, and production.
• Integration of Acquisitions: The company must successfully integrate and operate acquired businesses to realize the benefits of its acquisition strategy.

Mitigation Strategies: Live Ventures plans to focus on strategic acquisitions and operational efficiencies to mitigate these risks. The company is actively working to resolve a default situation with Fifth Third Bank related to PMW's Fixed Cost Coverage Ratio covenant.

The company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024, details these and other risk factors. Additionally, new risk factors may emerge, which are impossible to predict or assess their impact on the business.

For more insights into Live Ventures Incorporated, explore its Mission Statement, Vision, & Core Values of Live Ventures Incorporated (LIVE).

Live Ventures Incorporated (LIVE) Growth Opportunities

Live Ventures Incorporated (LIVE) is a diversified holding company strategically focused on acquiring U.S.-based middle-market growth companies. Their approach is sector-agnostic, targeting well-managed, closely held businesses with a history of earnings growth and cash flow generation. The company seeks to partner with existing management teams to enhance shareholder value through a disciplined buy-build-hold strategy.

Here's a breakdown of potential future growth prospects:

• Acquisition Strategy: Live Ventures actively seeks acquisitions, targeting companies with annual earnings between $5 million and $50 million. They focus on closely held or family-founded businesses possessing a strong culture, a capable management team, a defensible market position, and a track record of stable earnings. These companies should also be in need of new ownership and outside capital to support both organic and acquisitive growth.
• Experienced Acquirer and Manager: Live Ventures has demonstrated experience in acquiring and managing middle-market companies.
• Operational Synergies: The company focuses on integrating acquired companies into existing segments to promote cross-functional synergies and apply best practices across all business lines.

Live Ventures' current portfolio includes companies in:

• Textiles
• Flooring
• Tools
• Steel
• Entertainment
• Financial Services

Key financial data from the fiscal year 2024 shows:

• Revenues of $473 million
• Adjusted EBITDA of $25 million
• Total assets of $408 million
• Shareholders' equity of $73 million

However, it's important to note that the company reported a net loss of $26.7 million for fiscal year 2024, primarily due to a $18.1 million goodwill impairment charge in the Retail-Flooring segment and increased operating expenses.

Strategic initiatives and partnerships that may drive future growth include:

• Acquisition of Precision Metal Works (PMW) in 2023: This acquisition added an estimated $75 million in annual revenue.
• Acquisition of Flooring Liquidators in 2023: The purchase price for the Equity Interests was $83.8 million before any fair value considerations.

Live Ventures' competitive advantages include:

• Diversified Capital Allocation Strategy: This allows them to invest in various sectors and business models.
• Management Expertise: The company's management team adapts its business model to address market headwinds and enhance customer satisfaction.
• Operational Synergy: Combining diverse business operations creates competitive advantages across multiple industries.

For more insights into Live Ventures, explore their investor profile: Exploring Live Ventures Incorporated (LIVE) Investor Profile: Who’s Buying and Why?