Tue, May 14, 3:27 PM (73 days ago)
Live Ventures Incorporated's Q2 FY2024 Form 10-Q reveals a mixed financial performance. Revenue increased by 30.2% YoY to $118.6 million, driven primarily by the acquisitions of PMW and Flooring Liquidators, which collectively contributed an additional $29.6 million. The Flooring Manufacturing segment also saw a revenue increase of $3.8 million. However, the Retail-Entertainment segment experienced a revenue decline due to reduced consumer demand and a shift toward lower-ticket used products. Gross profit margin decreased to 29.9% from 34.7% in the prior year, primarily due to lower margins in the Steel Manufacturing segment and the acquisition of PMW, which traditionally has lower margins. Operating expenses rose by 31.9% to $29.8 million, partly due to recent acquisitions. Interest expense increased by $925,000 due to higher debt levels and interest rates. Net loss for the quarter was $3.3 million, compared to a net income of $1.6 million in Q2 FY2023. Adjusted EBITDA decreased by 51.5% to $4.5 million. The company maintains a working capital of $79.0 million, with $4.5 million in cash and $31.5 million available under revolving credit facilities. Despite the challenges, the company believes it has sufficient liquidity for the next 12 months.