Live Ventures Inc (LIVE) 2023 Q2 法說會逐字稿

Good day, everyone, and welcome to today's Live Ventures Incorporated earnings call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. Please note today's call may be recorded and I will be standing by should you need any assistance.

大家好，歡迎參加今天的 Live Ventures Incorporated 財報電話會議。此時，所有參與者都處於只聽模式。隨後，您將有機會在問答環節中提問。請注意，今天的通話可能會被錄音，如果您需要任何幫助，我將隨時待命。

It is now my pleasure to turn the conference over to Director of Investor Relations, Greg Powell. Please go ahead.

現在我很高興將會議交給投資者關係總監格雷格·鮑威爾主持。請繼續。

Thank you, Chloe. Good afternoon, everyone, and welcome to the Live Ventures' fiscal 2023 second-quarter conference call. Joining us this afternoon for the call are Jon Isaac, our Chief Executive Officer and President; and David Verret, our Chief Financial Officer.

謝謝你，克洛伊。大家下午好，歡迎參加 Live Ventures 2023 財年第二季度電話會議。今天下午加入我們電話會議的有我們的首席執行官兼總裁喬恩·艾薩克 (Jon Isaac)；以及我們的首席財務官 David Verret。

Some of the statements we are making today are forward-looking and are based on our best views of our businesses as we see them today. The actual results could differ materially due to a number of factors, including those outlined in our latest forms, Form 10-K and Form 10-Q, filed with the Securities and Exchange Commission. We have no obligation to publicly update any forward-looking statements after this call, whether as a result of new information, future events, changes in assumptions, or otherwise.

我們今天發表的一些聲明具有前瞻性，並且基於我們今天對我們業務的最佳看法。實際結果可能會因多種因素而產生重大差異，包括我們向美國證券交易委員會提交的最新表格（表格 10-K 和表格 10-Q）中概述的因素。我們沒有義務在本次電話會議後公開更新任何前瞻性陳述，無論是由於新信息、未來事件、假設變化還是其他原因。

You can find our press release and 10-Q, which are referenced on the call in the Investor Relations section of the Live Ventures' website. I will direct you to our website, which is www.liveventures.com or www.sec.gov for our historical SEC filings.

您可以在 Live Ventures 網站的投資者關係部分找到我們的新聞稿和 10-Q，電話會議中引用了這些內容。我將引導您訪問我們的網站，即 www.liveventures.com 或 www.sec.gov，以獲取我們向 SEC 提交的歷史文件。

I will now call turn the call over to David to walk us through our financial performance.

我現在將把電話轉給大衛，讓他向我們介紹我們的財務業績。

Thank you, Greg, and good afternoon, everyone. For our second quarter, we delivered revenue of $91.1 million, net income of $1.6 million, and adjusted EBITDA of $9.2 million. We were able to report these results despite a tough market environment, characterized by rising interest rates, inflation and weakening consumer demand.

謝謝格雷格，大家下午好。第二季度，我們的收入為 9110 萬美元，淨利潤為 160 萬美元，調整後 EBITDA 為 920 萬美元。儘管市場環境嚴峻，利率上升、通貨膨脹和消費者需求疲軟，但我們仍然能夠報告這些結果。

In addition, during the quarter, we acquired Flooring Liquidators for approximately $78.7 million. Despite the challenging macroeconomic conditions, we continue to execute our multi-lever buy, build, hold strategic plan while also investing in our existing businesses.

此外，在本季度，我們以約 7870 萬美元收購了 Flooring Liquidators。儘管宏觀經濟形勢充滿挑戰，我們仍繼續執行多槓桿購買、建設、持有戰略計劃，同時投資現有業務。

Before we jump into the number, let's briefly discuss the Flooring Liquidators acquisition. We are very excited about the Flooring Liquidators acquisition, which closed in January of this year. Flooring Liquidators is a retailer and installer of floors, carpets, and countertops to consumers, builders, and contractors in California and Nevada, operating 20 warehouse format retail stores and a design center. Over the years, they have established a strong reputation for innovation, efficiency, and service in the home renovation and improvement market.

在我們深入討論這個數字之前，讓我們簡要討論一下Flooring Liquidators 的收購。我們對今年 1 月完成的 Flooring Liquidators 收購感到非常興奮。 Flooring Liquidators 是一家為加利福尼亞州和內華達州的消費者、建築商和承包商提供地板、地毯和檯面的零售商和安裝商，經營 20 家倉庫式零售店和一個設計中心。多年來，他們在家居裝修和裝修市場上建立了創新、效率和服務的良好聲譽。

Now I'll discuss the financial results for our second quarter. Total revenue for the second quarter increased 30.7% to $91.1 million. The increase is primarily attributable to the acquisition of Flooring Liquidators and Kinetic, partially offset by decreased revenues in our other businesses.

現在我將討論第二季度的財務業績。第二季度總收入增長 30.7%，達到 9110 萬美元。這一增長主要歸因於收購 Flooring Liquidators 和 Kinetic，但部分被我們其他業務收入的下降所抵消。

Flooring manufacturing revenues of $30.3 million decreased by approximately $2.4 million or 7.4% as compared to the prior-year period, primarily due to reduced customer demand.

地板製造收入為 3030 萬美元，比去年同期減少約 240 萬美元，即 7.4%，主要是由於客戶需求減少。

Retail entertainment revenues of $19.1 million decreased by approximately $1.6 million or 7.5% as compared to the prior year. Revenues decreased due to general economic conditions as well as changes in overall product mix.

零售娛樂收入為 1,910 萬美元，比上年減少約 160 萬美元，即 7.5%。由於總體經濟狀況以及整體產品結構的變化，收入下降。

Beginning this quarter, we have a new segment. The retail flooring segment, which consists of Flooring Liquidators. Revenues for retail flooring were $20.8 million for the second quarter. Steel manufacturing revenues of $19.9 million increased by approximately $5.9 million or 42% as compared to the prior-year period primarily due to the acquisition of Kinetic.

從本季度開始，我們有一個新的細分市場。零售地板部門，由地板清理商組成。第二季度零售地板收入為 2080 萬美元。鋼鐵製造收入為 1990 萬美元，與去年同期相比增加了約 590 萬美元，即 42%，這主要是由於收購了 Kinetic。

Corporate and other segment revenues decreased approximately $1.3 million, primarily due to the decreased revenues at SW Financial.

公司和其他部門收入減少約 130 萬美元，主要是由於 SW Financial 收入減少。

Gross profit for the second quarter was $31.6 million, up from $25 million in the prior-year period. Gross margin percentage for the company decreased to 34.7% from 35.8% in the prior year. This decrease is primarily due to tightening of margins in our flooring, manufacturing, and steel manufacturing segments, partially offset by margins in the retail flooring segment.

第二季度毛利潤為 3160 萬美元，高於去年同期的 2500 萬美元。公司毛利率從上年的35.8%下降至34.7%。這一下降主要是由於我們的地板、製造和鋼鐵製造部門的利潤收緊，部分被零售地板部門的利潤所抵消。

General and administrative expenses of $22.6 million increased 71.9% as compared to the prior-year period. The increase is primarily due to the acquisitions of Flooring Liquidators and Kinetic, as well as one-time acquisition-related costs.

一般及行政費用為 2,260 萬美元，較上年同期增長 71.9%。這一增長主要是由於收購了 Flooring Liquidators 和 Kinetic，以及一次性收購相關成本。

Selling and marketing expenses of approximately $4 million increased 20.6% as compared to the prior-year period. Operating income decreased to $5 million for the second quarter of 2023 as compared to $8.5 million in the prior-year period. The decrease in operating income was primarily attributable to lower gross profit margins and increased general administrative expenses.

銷售和營銷費用約為 400 萬美元，較上年同期增長 20.6%。 2023 年第二季度的營業收入降至 500 萬美元，而上年同期為 850 萬美元。營業收入下降的主要原因是毛利率下降和一般管理費用增加。

Second-quarter interest expense increased approximately $3.4 million as compared to the prior-year period, primarily due to the increased debt balances related to the acquisitions of Flooring Liquidators and Kinetic.

第二季度利息支出較上年同期增加約 340 萬美元，主要是由於收購 Flooring Liquidators 和 Kinetic 相關的債務餘額增加。

Second-quarter net income was $1.6 million and diluted EPS was $0.49 per diluted share as compared to net income of $15.4 million and diluted EPS of $4.84 per share in the prior-year period. Prior year's net income included the benefit of approximately $11.4 million or $3.58 per diluted share for a gain on bankruptcy settlements. In addition, the decrease in net income is partially attributable to lower profit margins as a result of inflationary cost increases.

第二季度淨利潤為 160 萬美元，稀釋後每股收益為 0.49 美元，而上年同期淨利潤為 1540 萬美元，稀釋後每股收益為 4.84 美元。上一年的淨利潤包括約 1140 萬美元或稀釋後每股 3.58 美元的破產和解收益。此外，淨利潤下降的部分原因是通脹成本增加導致利潤率下降。

Adjusted EBITDA for the second quarter was $9.2 million, a decrease of approximately $1.1 million as compared to the prior-year period.

第二季度調整後 EBITDA 為 920 萬美元，比去年同期減少約 110 萬美元。

Turning to liquidity, we ended our second quarter with cash of $4.2 million and cash availability under our various lines of credit of $21.7 million for a total combined liquidity of $25.9 million. We had working capital of approximately $80.7 million as of March 31, 2023, as compared to working capital of approximately $78.4 million as of September 30, 2022.

談到流動性，我們第二季度末的現金為 420 萬美元，各種信貸額度下的可用現金為 2170 萬美元，總流動性為 2590 萬美元。截至2023年3月31日，我們的營運資金約為8070萬美元，而截至2022年9月30日，我們的營運資金約為7840萬美元。

Total assets increased to $365.4 million as compared to $278.6 million as of September 30th, 2022. Total stockholders' equity increased $6.1 million to $103.2 million.

截至 2022 年 9 月 30 日，總資產增至 3.654 億美元，而截至 2022 年 9 月 30 日為 2.786 億美元。股東權益總額增加 610 萬美元，增至 1.032 億美元。

As part of our capital allocation strategy, we may make share repurchases from time to time. We believe our stock repurchases represent long-term value for our stockholders. As previously disclosed, the company had announced a 10 million common stock repurchase plan in 2018. During our second quarter, we repurchased 674 shares of common stock at an average price for approximately $25 per share. As of March 31, the company had approximately $3.4 million available for repurchases under this program.

作為我們資本配置策略的一部分，我們可能會不時進行股票回購。我們相信我們的股票回購代表了股東的長期價值。正如之前披露的，該公司宣布了 2018 年 1000 萬股普通股回購計劃。在第二季度，我們以每股約 25 美元的平均價格回購了 674 股普通股。截至 3 月 31 日，該公司約有 340 萬美元可用於根據該計劃進行回購。

In conclusion, we remain committed to creating long-term value for our stockholders. To achieve this, we focus on strategic, well-planned acquisitions and investments, aligning with our growth objectives and generating sustainable returns. We believe that our financial strength and strategic focus position us to well weather near-term headwinds and emerge as a stronger, more resilient company in the long run.

總之，我們仍然致力於為股東創造長期價值。為了實現這一目標，我們專注於戰略性、精心策劃的收購和投資，與我們的增長目標保持一致並產生可持續的回報。我們相信，我們的財務實力和戰略重點使我們能夠很好地應對近期的逆風，並從長遠來看成為一家更強大、更有彈性的公司。

We will now take questions from those of you on the conference call. Operator, please open the line for questions.

我們現在將在電話會議上回答你們的問題。接線員，請開通提問線路。

Absolutely. (Operator Instructions)

絕對地。 （操作員說明）

It does appear there are no questions at this time.

目前看來確實沒有問題。

Well, I just want to thank everyone for joining the call, and we look forward to sharing our progress in the next quarter meeting. Thank you.

好吧，我只想感謝大家加入電話會議，我們期待在下季度會議上分享我們的進展。謝謝。

Have a nice day. Thank you.

祝你今天過得愉快。謝謝。

This does conclude today's program. Thank you for your participation. You may disconnect at any time and have a wonderful afternoon.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接，度過一個美好的下午。