Live Ventures Inc (LIVE) 2026 Q2 法說會逐字稿

Good day, everyone, and welcome to the Live Ventures fiscal year '26 Q2 earnings conference call. (Operator Instructions) Now I'll turn the call over to your host, Greg Powell, Director of Investor Relations.

各位好，歡迎參加 Live Ventures 2026 會計年度第二季（Q2）財報電話會議。（接線員指示）現在我將把電話交給本次會議主持人、投資人關係總監 Greg Powell。

Please go ahead, Greg.

Greg，請開始。

Thank you, Elvis. Good afternoon, and welcome to the Live Ventures second-quarter fiscal year 2026 conference call. Joining us this afternoon are Jon Isaac, our Chief Executive Officer and President; and David Verret, our Chief Financial Officer. Some of the statements we're making today are forward-looking and are based on our best view of our businesses as we see them today.

謝謝你，Elvis。各位下午好，歡迎參加 Live Ventures 2026 會計年度第二季電話會議。今天下午與會者包括我們的執行長兼總裁 Jon Isaac，以及我們的財務長 David Verret。我們今天所做的部分陳述屬於前瞻性陳述，係基於我們目前對各項業務的最佳觀點。

The actual results could differ materially due to a number of factors, including those outlined in our latest financials, Forms 10 and Forms 10-Q, as filed with the Securities and Exchange Commission. And a matter of fact, our 10-Q will be filed here in a few minutes for this quarter. We have no obligation to publicly update our forward-looking statements after this call, whether as a result of new information, future events, changes in assumptions, or otherwise. You can find our press release referenced on this call in the Investor Relations section of the Live Ventures website. I direct you to our website, liveventures.com or sec.gov for our historical SEC filings.

實際結果可能因多項因素而出現重大差異，包括我們最新財務資料以及向美國證券交易委員會（SEC）提交的 Form 10 與 Form 10-Q 中所列示的因素。事實上，我們本季的 10-Q 將在幾分鐘後提交。我們在本次電話會議後，無論因新資訊、未來事件、假設變更或其他原因，均無義務公開更新任何前瞻性陳述。您可在 Live Ventures 官網的投資人關係（Investor Relations）專區查閱本次電話會議所提及的新聞稿。我也請您至 liveventures.com 或 sec.gov 查閱我們過往向 SEC 提交的文件。

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

接下來我將把電話交給 David，請他帶我們回顧財務表現。David？

Thank you, Greg. Good afternoon, everyone. Before discussing our financial results, I'd like to touch on a few key highlights from the quarter. During the quarter, our Retail Entertainment and Flooring Manufacturing segments delivered strong operating income growth of 32.8% and 24%, respectively. However, these gains were offset by a $1.9 million decrease in operating loss -- increase in operating loss in the Retail Flooring segment and a noncash goodwill impairment charge of approximately $4 million in our Steel Manufacturing segment. Excluding the impairment charge, consolidated operating income would have been approximately $2 million, essentially in line with the prior year period.

謝謝你，Greg。各位下午好。在討論財務結果之前，我想先提及本季幾項重點亮點。本季，我們的零售娛樂（Retail Entertainment）與地板製造（Flooring Manufacturing）部門分別實現 32.8% 與 24% 的強勁營業利益成長。然而，這些增長被零售地板（Retail Flooring）部門營業損失增加（營業損失增加）所造成的 190 萬美元不利變動，以及鋼鐵製造（Steel Manufacturing）部門約 400 萬美元的非現金商譽減損費用所抵銷。若排除該減損費用，合併營業利益約為 200 萬美元，基本與去年同期持平。

Let's now discuss the financial results for the second quarter ended March 31, 2026. Revenue decreased approximately $4.1 million or 3.8% to $102.9 million compared to revenue of $107 million in the prior year period. The decrease in revenue primarily reflects a decline of approximately $7.2 million in the Retail Flooring segment, partially offset by an increase of approximately $2.7 million in the Retail Entertainment segment.

接下來我們討論截至 2026 年 3 月 31 日止第二季的財務結果。營收較去年同期的 1.07 億美元減少約 410 萬美元或 3.8%，至 1.029 億美元。營收下滑主要反映零售地板部門營收約減少 720 萬美元，部分被零售娛樂部門營收約增加 270 萬美元所抵銷。

Retail Entertainment segment revenue increased approximately $2.7 million or 14.8% to $21.2 million compared to $18.5 million in the prior year period. The revenue growth was driven by strong consumer demand across all product lines.

零售娛樂部門營收較去年同期的 1,850 萬美元增加約 270 萬美元或 14.8%，至 2,120 萬美元。營收成長主要受所有產品線的強勁消費者需求所帶動。

Retail Flooring segment revenue decreased approximately $7.2 million or 26.2% to $20.2 million compared to $27.4 million in the prior year period. The decline was primarily driven by lower retail and contractor sales due to the continued headwinds in the new home construction and home refurbishment markets.

零售地板部門營收較去年同期的 2,740 萬美元減少約 720 萬美元或 26.2%，至 2,020 萬美元。下滑主要由於新屋建築與住宅翻修市場持續面臨逆風，導致零售與承包商銷售下降。

Flooring Manufacturing revenue decreased approximately $1 million or 3.2% to $30.3 million compared to $31.3 million in the prior year period. The decline was primarily attributable to continued softness in the housing market. Net of intercompany eliminations, revenue decreased approximately $600,000 compared to the prior year period.

地板製造營收較去年同期的 3,130 萬美元減少約 100 萬美元或 3.2%，至 3,030 萬美元。下滑主要歸因於房市持續疲弱。扣除公司間交易沖銷後，營收較去年同期約減少 60 萬美元。

Steel Manufacturing segment revenue increased approximately $1.1 million or 3.4% to $32.5 million compared to the prior year period. The increase in revenue was primarily driven by higher sales volumes in the fabricated, hardened ware, tool and die businesses, partially offset by lower revenue in the metal forming, assembly, and finishing solutions business. Net of intercompany eliminations, revenue increased approximately $900,000 compared to the prior year period.

鋼鐵製造部門營收較去年同期增加約 110 萬美元或 3.4%，至 3,250 萬美元。營收增加主要由於製造加工（fabricated）、淬硬器具（hardened ware）、工具與模具（tool and die）業務的銷售量提高，部分被金屬成形、組裝與表面處理解決方案業務營收下降所抵銷。扣除公司間交易沖銷後，營收較去年同期約增加 90 萬美元。

Gross profit decreased approximately $600,000 or 1.6% to $34.6 million compared to $35.1 million in the prior year period. The decrease in gross profit was driven primarily by the lower revenues in the Retail Flooring segment.

毛利較去年同期的 3,510 萬美元減少約 60 萬美元或 1.6%，至 3,460 萬美元。毛利下降主要由零售地板部門營收較低所致。

Gross margin increased 80 basis points to 33.6% compared to 32.8% in the prior year period, reflecting improved margins in the Steel Manufacturing, Flooring Manufacturing, and Retail Flooring segments, as well as a more favorable revenue mix as the higher-margin Retail Entertainment segment represented a larger share of consolidated revenue.

毛利率較去年同期的 32.8% 提升 80 個基點至 33.6%，反映鋼鐵製造、地板製造與零售地板部門的利潤率改善，以及更有利的營收組合——高毛利的零售娛樂部門在合併營收中占比提高。

General and administrative expense decreased 2.3% to approximately $27.7 million. The decline was driven primarily by targeted cost reduction initiatives in our Retail Flooring and our Flooring Manufacturing segments, including lower compensation expense and reduced professional fees, partially offset by increased compensation and occupancy costs in our Retail Entertainment segment.

一般及行政費用下降 2.3% 至約 2,770 萬美元。下降主要由於我們在零售地板與地板製造部門推動具針對性的成本削減措施，包括薪酬費用降低及專業服務費減少；部分被零售娛樂部門薪酬與場地占用成本增加所抵銷。

Sales and marketing expense increased 3.4% to approximately $4.9 million, primarily reflecting higher sales and marketing activity in the Retail Flooring segment.

銷售與行銷費用增加 3.4% 至約 490 萬美元，主要反映零售地板部門較高的銷售與行銷活動。

Operating loss was $2 million compared to operating income of $2.1 million in the prior year period. The decrease was primarily driven by a non-cash goodwill charge of $4 million in the Steel Manufacturing segment. Excluding the noncash goodwill impairment charge, consolidated operating income would have been $2 million compared to $2.1 million in the prior year period.

營業損失為 200 萬美元，去年同期為營業利益 210 萬美元。下降主要由於鋼鐵製造部門認列 400 萬美元的非現金商譽費用。若排除該非現金商譽減損費用，合併營業利益將為 200 萬美元，去年同期為 210 萬美元。

Interest expense remained consistent at approximately $3.9 million as compared to the prior year period. Net loss was approximately $2.4 million and diluted loss per share was $0.80 compared with net income of approximately $15.9 million and diluted EPS of $5.05 in the prior year period. The net loss in the quarter -- for the quarter ended March 31, 2026, includes the goodwill impairment charge as well as a $1.4 million gain related to employee retention credits in the Retail Flooring segment.

利息費用約為 390 萬美元，與去年同期大致一致。淨損約 240 萬美元，稀釋後每股虧損為 0.80 美元；去年同期淨利約 1,590 萬美元，稀釋後每股盈餘（EPS）為 5.05 美元。本季（截至 2026 年 3 月 31 日止季度）的淨損包含商譽減損費用，並包含零售地板部門與員工留任抵免（employee retention credits）相關的 140 萬美元收益。

The prior year period benefited from a $22.8 million gain related to the modification of the Flooring Liquidators' seller note. Adjusted EBITDA was $5.9 million, a decrease of approximately $600,000 or 8.8% compared to the prior year period. The decrease in adjusted EBITDA was primarily due to the lower gross profit.

去年同期受惠於與 Flooring Liquidators 賣方票據（seller note）修改相關的 2,280 萬美元收益。調整後 EBITDA 為 590 萬美元，較去年同期減少約 60 萬美元或 8.8%。調整後 EBITDA 的下降主要由於毛利較低。

Turning to liquidity. We ended the second quarter with total cash availability of approximately $39.8 million, consisting of cash on hand of $15.2 million and availability under our various lines of credit of $24.6 million. Our working capital was $74.4 million as of March 31, 2026, compared to $62.1 million as of September 30, 2025. As of March 31, total assets were $392.5 million and total stockholders' equity was $92.9 million.

接著談流動性。我們在第二季結束時的總可用現金約為3,980萬美元，包括手頭現金1,520萬美元，以及我們各項信用額度下可動用額度2,460萬美元。截至2026年3月31日，我們的營運資金為7,440萬美元，相較於2025年9月30日的6,210萬美元。截至3月31日，總資產為3億9,250萬美元，股東權益總額為9,290萬美元。

In conclusion, this quarter demonstrated both the resilience of our business model and the ongoing challenges in the Retail Flooring market. We are focused on reducing costs and improving operations across our businesses, and we are pleased with the operating improvements in our Retail Entertainment and Flooring Manufacturing segments. We remain committed to building on that progress in the second half of the fiscal year while driving further efficiencies in our Retail Flooring business.

總結而言，本季同時展現了我們商業模式的韌性，以及零售地板市場持續存在的挑戰。我們專注於在各項業務中降低成本並改善營運，且我們對零售娛樂與地板製造部門的營運改善感到滿意。我們仍致力於在本財年下半年延續這項進展，同時在零售地板業務中推動進一步的效率提升。

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

我們現在將接受各位在電話會議上的提問。接線員，請開放提問線路。

(Operator Instructions) First up, we have Joseph Kowalsky, JD Financial Planners.

（接線員指示）首先是 Joseph Kowalsky，JD Financial Planners。

Hi, good afternoon and thank you the information. I hope there's not an echo here. I have to actually step out to a different room and have to leave the other phone.

嗨，下午好，謝謝你提供的資訊。希望這裡沒有回音。我其實得走到另一個房間，並且得把另一支電話留在原處。

I'm just curious about the goodwill impairment. I generally understand accounting. But when it comes to things like goodwill, I always find it a little bit confusing. Could you go into just what exactly that refers to, please?

我只是好奇關於商譽減損。我大致了解會計，但談到像商譽這類的東西時，我總覺得有點困惑。你能否說明一下那究竟指的是什麼？

Sure. So for accounting purposes, there's an annual goodwill test. Ours is in Q4. But if there's ever a triggering event that happens before that or outside of that testing period, then you're required to do kind of impromptu test. And essentially, because of some of the loss in production that we're seeing, really stemming from a decline in the market, namely, this has to do with -- in our steel industry with our stamping and metal forming business.

當然。就會計目的而言，每年都要進行一次商譽測試。我們是在第四季進行。但如果在那之前或測試期間之外發生任何觸發事件，就必須做一種類似臨時的測試。基本上，由於我們看到產量出現一些下滑，主要源自市場下行；具體而言，這與——在我們的鋼鐵產業中——沖壓與金屬成形業務有關。

And a lot of what they do relates to appliances and automobiles and things like that. And then as we're seeing our customers pull back because sales are lagging on their end, we're coming in lower than what we expected to produce in the period because they're adjusting their volume as they go. So really, it's all stemming just from just continued uncertainty in the market. Interest rates --

而他們做的很多事情都與家電、汽車等相關。當我們看到客戶因其端銷售落後而縮手時，我們在該期間的實際產出就低於原先預期，因為他們會隨著情況調整其需求量。所以，這一切其實都源自市場持續的不確定性。利率——

Is that a paper loss, but you still have the revenues coming in? Is it --?

那是帳面損失，但你們仍然有營收進來？它是——？

That is correct. It is all just a paper loss. So it has no impact on EBITDA. There is no cash aspect related to it. It is just a charge that kind of wipes out the goodwill.

沒錯。這完全是帳面損失，因此對EBITDA沒有影響。沒有任何現金層面的影響。它只是一筆費用，等於把商譽沖銷掉。

In the old days, you used to amortize goodwill down over 15 years for book purposes, but GAAP had changed that where you do not amortize it. So the only way it ever comes off the book is if, I guess, you run to an impairment.

以前，為了帳面目的，你會在15年內攤銷商譽，但GAAP已經改變，不再攤銷。因此，商譽唯一會從帳上消失的方式就是——我想——發生減損。

I understand. Is the company -- has the company been considering acquiring anyone at this point? Or is the focus on paying down the debt from prior acquisitions and --?

我了解。公司——公司目前是否正在考慮收購任何對象？還是重點在於償還先前收購所產生的債務以及——？

Yeah. I think our strategy has remained the same. I think if there are good opportunities that are coming up, we're absolutely interested in looking at those. And while there isn't anything out there, we are taking advantage of that time and paying down our debt. I believe our debt was paid down about $8 million from March of last year to the current year, so --

是的。我認為我們的策略一直不變。我認為如果有好的機會出現，我們絕對有興趣評估。而在目前沒有特別的標的時，我們就善用這段時間來償還債務。我相信我們的債務從去年3月到今年已經減少了大約800萬美元，所以——

Thank you. And then the final question is, when you are looking for other potential acquisitions, and this is similar to a question I've asked in the past, but maybe I'm looking at it a little differently. Do you tend to look in the same areas that you currently have companies? Or are you looking more to diversify the portfolio into other areas? Or does that just depend on what comes up in the market?

謝謝。最後一個問題是，當你們在尋找其他潛在收購案時，這跟我過去問過的問題有點類似，但也許我這次的角度有些不同。你們通常會在目前已經有公司布局的相同領域尋找？還是更希望把投資組合多元化到其他領域？或者這只是取決於市場上出現什麼機會？

I think it depends on what comes up in the market. But I think what we've seen is as we begin to establish a presence in a certain market, i.e., like in the steel industry, we start to see more of opportunities just from our presence in that space. But we will diversify it. If there's something that kind of meets our criteria, then it doesn't matter the industry.

我認為這取決於市場上出現什麼機會。但我想我們看到的是，當我們開始在某個市場建立據點時，例如在鋼鐵產業，我們會因為在該領域的存在而看到更多機會。不過我們也會多元化。如果有某個案子符合我們的標準，那麼產業別並不重要。

And there is actually one final question. You've had a couple of missteps in the past. And I just wonder what you can say you've learned from those missteps as far as acquiring companies in the future. And then I will be quiet and listen. Thank you very, very much.

其實還有最後一個問題。你們過去有過幾次失誤。我只是想知道，就未來收購公司而言，你們能說說從那些失誤中學到了什麼嗎？然後我就安靜聽你們回答。非常、非常感謝。

Yeah. Well, that's kind of a tough one right there. I just think really it's all just around due diligence. And every time there may be a little nuance related to an acquisition that we will kind of pick up on and then try to fine-tune that kind of going forward. So I mean, after every acquisition, I believe we get better.

是的。嗯，這個問題有點難。我認為主要還是盡職調查。每一次收購可能都會有一些細微差異，我們會注意到，並在之後加以微調。所以我的意思是，我相信每做完一次收購，我們就會變得更好。

We get a little bit more knowledgeable. And so all we do is kind of look at what has happened, do a postmortem type of assessment on acquisitions and find out what worked and what didn't work and just trying to build on the positives and mitigate those negative aspects.

我們會更有經驗、更了解。因此我們所做的就是回顧已發生的事情，對收購案做一種類似事後檢討的評估，找出哪些做得好、哪些做得不好，並努力在正面之處持續加強，同時降低那些負面因素。

(Operator Instructions) We have no further questions at this time. David, back over to you for any closing comments.

（接線員指示）目前沒有其他問題。David，交回給你做任何結語。

Thank you. I want to thank everyone for joining our Q2 earnings call, and we look forward to seeing you next quarter. Thank you.

謝謝。我想感謝各位參加我們的第二季財報電話會議，我們期待下季再見。謝謝。

That concludes our meeting today. You may now disconnect.

我們今天的會議到此結束。各位現在可以掛線。