Live Ventures Announces Financial Results for Fiscal 2019
LAS VEGAS, Feb. 10, 2020 (GLOBE NEWSWIRE) -- Live Ventures Incorporated (Nasdaq: LIVE), a diversified holding company, today announced financial results for the fiscal year 2019, which ended September 30, 2019. The company reported revenue of approximately $193 million and total assets of $122 million. The company repurchased a record 119,238 shares of common stock during the fiscal year.
While both Marquis Industries and Vintage Stock performed reasonably well and were profitable during the fiscal year, ApplianceSmart contributed an operational loss of $11.8 million and a $2.6 million impairment charge relating to the Chapter 11 filing and store closures during the prior fiscal year. Total losses for the ApplianceSmart business, net of taxes, was, and reduced income generated by the company’s other subsidiaries by, approximately $14.4 million. Overall, the company reported consolidated net loss of $4 million, or $2.11 in loss per basic common share. The company expects that any future extinguishment of ApplianceSmart indebtedness resulting from the Chapter 11 proceeding will be reflected as a non-cash gain of extinguishment and/or settlement of debt and other liabilities in the company’s future financial statements.
Despite the consolidated net loss for the year, gross profit for the fiscal year was $70 million and cash from operations increased from the prior fiscal year by approximately $7 million, or 61%, to $19 million. Interest expense decreased by over $2 million or 27% compared to the prior fiscal year due to the $17 million decrease in outstanding debt.
“With the recently implemented aggressive cost cutting measures at ApplianceSmart, together with the ApplianceSmart Chapter 11 filing previously announced on December 13, 2019, we believe that the worst of ApplianceSmart is now behind us,” said Virland A. Johnson, the company’s Chief Financial Officer. “Overall, aside from ApplianceSmart, the company did moderately well, having paid down a significant amount of debt and repurchased a record number of shares of common stock during the most recent fiscal year.”
Key highlights of fiscal 2019 include (dollars in millions except per share amounts):
2019 2018 ----- - ---- Revenues $ 193 $ 200 Gross profit 71 74 Operating income 3 11 Net income (loss) (4 ) 6 Income (loss) per common share (2.11 ) 3.01 Total assets 122 141 Total liabilities 88 102 Cash from operations 20 12
Cash availability, representing cash on hand and available credit on the company’s consolidated revolving lines of credit, was $19 million.
Results of Operations by Segment (in millions):
Year Ended September 30, Year Ended September 30, 2019 2018 --------------------------- -------------------------- Retail Retail & & Online Mfg Serv Total Online Mfg Serv Total ices ices ----- ---- --- ----- ----- ---- --- ----- Revenue $ 100 $ 92 $ 1 $ 193 $ 110 $ 89 $ 1 $ 200 Gross Profit 45 25 – 71 51 22 1 74 - --- - -- - - - --- - --- - -- - - - --- Operating Income (Loss) $ (9 ) $ 12 $ – $ 3 $ 1 $ 9 $ 1 $ 11 - --- - -- - - - --- - --- - -- - - - ---
Live Ventures intends to announce the exact date and time of the conference call to discuss the financial results of fiscal 2019 and Q1 fiscal 2020 at a future date.
About Live Ventures
Live Ventures Incorporated, originally incorporated in 1968, is a diversified holding company with a strategic focus on acquiring profitable companies that have demonstrated a strong history of earnings power. Through its subsidiary Marquis Industries, the company manufactures and sells residential and commercial carpets primarily in North America. Marquis Industries also designs, sources and sells hard-surface flooring. Through its subsidiary Vintage Stock, an award-winning entertainment retailer, the company sells new and pre-owned movies, classic and current generation video games and systems, music on CD & LP, collectible comics, books, toys, and more. Vintage Stock, through its stores and website, ships product worldwide directly to the customer’s doorstep. Through its subsidiary ApplianceSmart, the company sells new major household appliances in the United States through a chain of company-owned retail stores operating under the name ApplianceSmart®.
Forward-Looking and Cautionary Statements The use of the word “company” or “Company” refers to Live Ventures Incorporated and its wholly-owned subsidiaries. This press release contains “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 and include statements relating to any future extinguishment of ApplianceSmart indebtedness resulting from the Chapter 11 proceeding. Live Ventures may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) on Forms 10-K and 10-Q, Current Reports on Form 8-K, in its annual report to stockholders, 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 Annual Report on Form 10-K for the fiscal year ended September 30, 2019 (available at http://www.sec.gov ). Live Ventures undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.
This press release should be read in conjunction with the Annual Report on Form 10-K to which it relates, and with the information included in our other press releases, reports, and other filings with the SEC. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods.