Live Ventures Reports Q4 2024 Revenue Decline to $111.5M but Achieves Net Income Turnaround

Live Ventures Incorporated reported its financial results for the three months ended December 31, 2024, revealing a revenue of $111.5 million, a decrease of approximately 5.2% from $117.6 million in the same period last year. The decline in revenue was primarily attributed to decreases in the Flooring Manufacturing, Retail Flooring, and Steel Manufacturing segments, which collectively accounted for a loss of about $6.7 million in revenue. Despite the drop in revenue, the company achieved a net income of $492,000, compared to a net loss of $682,000 in the prior year, marking a significant turnaround in profitability.

The company's gross profit margin improved to 31.7% from 30.9% year-over-year, driven by enhanced efficiencies in the Steel Manufacturing segment and the acquisition of Central Steel, which historically generates higher margins. However, general and administrative expenses rose by 8.6% to $30.1 million, largely due to increased compensation expenses related to new store openings at Flooring Liquidators. Sales and marketing expenses decreased by 11.3% to $4.5 million, reflecting reduced marketing activities.

Live Ventures has been active in strategic acquisitions, including the purchase of Central Steel in May 2024, which contributed to revenue in the Steel Manufacturing segment. The company also acquired Midwest Grinding in June 2024, further expanding its operational footprint. As of December 31, 2024, Live Ventures had a total of 3,106,431 shares of common stock outstanding, with cash reserves increasing to $7.4 million from $4.6 million at the end of the previous quarter.

Operationally, the company reported mixed performance across its segments. The Retail-Entertainment segment saw a revenue increase of 3.3% to $21.3 million, while the Retail-Flooring segment experienced a 7.5% decline in revenue to $31.7 million due to reduced demand. The Flooring Manufacturing segment also faced challenges, with revenue down 11.1% to $26.0 million. In contrast, the Steel Manufacturing segment reported a slight revenue decrease of 2.8% to $32.4 million, bolstered by the recent acquisition.

Looking ahead, Live Ventures anticipates that its available cash, cash generated from operations, and borrowing capacity will provide sufficient liquidity for the next 12 months to support operations, scheduled loan payments, and potential acquisitions. The company is actively working to resolve a default related to its Fixed Cost Coverage Ratio covenant with Fifth Third Bank, which has not yet resulted in any immediate actions from the lender. Management remains focused on improving internal controls and financial reporting processes, with plans to address identified weaknesses in the upcoming fiscal year.