Live Ventures Stock Dips On Wider Net Loss: Retail Sentiment Sours

Shares of Live Ventures Inc. ($LIVE) were down 0.5% on Thursday after the investment firm reported its net loss widened in its fiscal 2024 earnings, dampening retail sentiment.

For fiscal 2024, the middle market-focused investment firm posted revenues of $472.8 million, up 33.1% from last year. The firm attributed the rise to 2023 acquisitions of Flooring Liquidators and Precision Metal Works, as well as Central Steel, which it bought in May 2024.

Its net loss widened to $26.7 million, and loss per share stood at $8.48 (pls cross check this once, it feels like a huge jump), compared with net loss of about $0.1 million and loss per share of $0.03 reported a year ago. A goodwill impairment charge in the retail flooring segment, lower operating income, and higher interest expense were cited as factors.

Its adjusted earnings before interest, taxes, and depreciation (EBITDA) was about $24.5 million, down 22.3% from last year.

Retail sentiment on the company turned ‘bearish’ (36/100) from ‘neutral’ (48/100) a day ago, while message volumes moved to ‘extremely high’ levels.

LIVE sentiment meter and message volumes on Dec 12

According to the press release, the company’s total assets stood at $407.5 million, and stockholders’ equity was reported at $72.9 million as of Sept. 30. It also had about $33.3 million of cash and availability under its credit facilities.

“Our fiscal year 2023 acquisitions drove substantial revenue and gross profit growth in fiscal year 2024,” stated Jon Isaac, Live Ventures President and CEO.

“However, challenging market conditions in our Retail-Flooring and Steel Manufacturing segments adversely affected the operating results of these businesses. Despite these industry-specific headwinds, we remain confident in our businesses and our long-term 'buy-build-hold' strategy,” he said.

The stock is down 61.8% so far this year.