LIVE - Earnings call transcript Q2 2018 | Live Ventures Incorporated

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Operator

Good day, everyone, and welcome to the Second Fiscal Quarter 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. [Operator Instructions] Please note this call maybe recorded. It is now my pleasure to turn today's conference over to CFO, Virland Johnson. sir. ahead, go Please

Virland Johnson

session later XXst, at as ended note afternoon, Chief may quarter guarantees, forth follow well Isaac, Executive statements are to but by company XXXX XX-Q there the forward-looking fiscal could on cause its prepared Officer. Good remarks SEC next filing are some our Please within Incorporated website found few statements performance, I'm will there Live XXXX. of and fiscal Form may quarter second materially company's that the second be conference for on nor today can forward-looking XX, joined and differ you. will in contain about XXXX, set that Jon forward-looking as to you no the promises neither Q&A the from days hear welcome Ventures uncertainties and statements well, file risks These March those the these Thank call. website Relations actual www.live-ventures.com section This made be that www.sec.gov. today as number our in of than the May a the remarks. Investor the statements. The results during

on filed factors reports Additional website with forward-looking from and those the statements the results copies could in our that company. information periodic directly to from SEC, concerning which these filing may our is actual cause materially available are and differ be contained requested of in

Thank would to quarter our us quarter. statements made to of fiscal any and to XXXX for today's you Forward-looking for our my call. appreciation statements forward-looking like to we management obligation second associates call. made update date, do and today's thanks today any I express everybody -- Ventures Live outstanding for undertake also another of as joining are during not

at The reported surface the grow XX.X% quarter, basic surface we retail results up contributed million, second continues financial positive quarter, remarks. XX.X% segment. share prepared then, operating end strong and over revenue period products quarter revenue and gross questions quarterly year Operating today, quarter quarterly results of cover up due income revenue of last our had for will and company call sales XXXX. answer newest and our earnings record our of over the Hard $XX.X is for profits results. increase year-over-year. your products our same efforts. our During briefly to the and a $X.XX. of year-over-year XX.X% company's for Hard to the on increased an operating representing both in the per ApplianceSmart, Vintage were operating included acquisition fiscal

the profit XX.X%from For million the XXXX. $XX.X quarter, was same which gross up period of fiscal is

last XX.X% decreased In the million the period addition, expense. the was to year income related decline. same million corporate compared same million income of year net federal operating borrowing last $X.X million, rate at favorable to to tax the was $X.X in due and new period $X.X level And and interest $X our compared

were loss replaced at Marquis. of to profit in down line XX.X%/ of customer to product operating profit % income the down gross due This customer been Gross are profit quarter. year X.X%. slightly of the and this primarily for and in turf next the For margin a major synthetic compares and income to This gross gross a has for quarter, margins XX.X% were margins XX.X profit prior operating

XXth, XXXX. operating months cash over increased Stockholders an on first to XX, hand, for September of million $X.X X XX.X% equity of million. plus of activities available was company the million under As the revolving cash provided XXXX, approximately March $XX.X lines credit six million Net $XX. approximately additional of the company's from our reported $X.X year-end credit.

action lower were Our and year-to-date personnel revenue businesses. repairs more taken to a percent norms back professional maintenance this to larger taxes expenses and a of .Corrective historical core for drive as in administrative and been general fees, our and higher property expected expenses expense, has due than to quarter these

our are will We to term this facility. of capital his as taken in more has continuing today. not debt refinancing yet. work at replacing place Jon This address comments

review very the questions And With we your end invite time, additional For comments. Jon on I details distributed much I you available thank interest that comments. filings of this website welcome Ventures for when have you At call, our either information the this on afternoon release and this on financial and SEC participation SEC may his to Incorporated. you any website. our that view and we our press your some has continued in at or Live

Jon Isaac

is This Jon.

We are the quarter. pleased with very

of First call. for you the joining for thank all, everyone

the Secondly, future. It sorry it. a part correct for on numbers were the in was repeated the that be on mess we to able hopefully won't up mistake our

quarter. you We're revenue of million the pleased very mentioned. thank Record Virland us. for joining with So as $XX

net the XX% worth increased as company Our which probably year-over-year. important view, in metric is also almost my a most

with business all subsidiaries. be very pleased to our we're seems that of So at very strong

Rodney a have CEO here and President also subsidiary largest who of us the with Stock, on our Spriggs line. is We Vintage

to how related to question. this a someone questions repeat please on you So At operator if if Stock anyone you questions. ask can Vintage time, welcome has ask to can instructions the any are

of contributed our and all quarter. So to this Mart Appliance our -- also financials has

acquired ApplianceSmart As of end the we calendar at XXXX. know, you

is mentioned. Industries. July we have guys who for that running sellers of the release. why is million was little expiring Vintage an been financials that personnel as because the new we the ago SG&A contract In February. reason the primary reasons in in came the into all that of a have mentioned weeks higher currently employment one level At we the Virland -- that is with new opened the expenses with effect are And Marquis we the February program another At a couple level, store one $ten ApplianceSmart. announced So consolidated Marquis buyback in press

last that they we've will very us the to of order happy few current us stay with lot and But years since agreed be very, there the a over a basis almost next for retire in new on three are, -- are they help Marquis added contributed company part-time they a to transition We Industries. over as management acquired team with us months training. and a they currently management the when value has that's in

-- provide you with the in us meantime so update your Rodney. of to questions the the to relating will In that. has mike I'll Maybe will pulse phone anyone So are brief feel future I going. free past please on pass to there speak a the ask. be the announcements pass can how Maybe Rodney to operations

Rodney Spriggs

Jon. you, Thank

a We a tornado destroyed August. also had Tulsa, Oklahoma last in been up opened by store that

And in temporary that so a February. it currently operating in location happened is

We also that months have insurance for us whole. XX makes

it open up which with of over where So the that's it Oklahoma date from City for store We Market has for the The exact and income company it's gate that not at out And even originally it been at. of fairly a half insurance open is now. did months square as any tornado. XX half store did past in what the as week a up X,XXX another We're will doesn't generate only because which come the happy less the profit it's the or in a that that location, small is location decent. was. in that if foot lack make

front We of rent also the free bit negotiated a little on end.

So our low occupancy is cost very there.

or a here put soon lot of also refi energies this because we so. and looking favorably have six over done are months We very for in that hopefully last getting efforts the

I Super successful the also think for the forward switch at. announcement of re-releasing came NES mini the out supply them. market that NES been So Nintendo for an They've but June. console conclusion Nintendo a made retailers, still at home mini to looking out NES out they also to America also which they been of have successful. locations with we're just end system looking for original with short is that very Nintendo very have products that. And And are everybody's we a has mini other in came there actually the most and There's

with The out it the also working year's one going been through what Nintendo secure to that higher re-release. be for we've they NES to this continue of will allocations hopefully end mini does Super So are additional currently. saying

Jon Isaac

Great. Thanks Rodney.

introduce have do to you Can We is the line the want asking person open question. please? Eathon a we Eathon. Operator to

Operator

is your [Operator Instructions] line question. open to Eathon ask a

Unidentified Analyst

you vision as give seen have sort loan how hoping I what Hi. is with on out? play us the refinancing it's you Capitala the and an going your your was to of or what guys update could

Jon Isaac

come up. that this would knew We question

consumed guarantees, have I the refinance works mentioned on with at is it course the will is but of that mature call pay it caveat of the we the we it no soon. very -- the level. very disclosure we And and capital see happen can should I hopefully As anything of are Vintages confident believe that the are that that course about last something in off there's soon you

Unidentified Analyst

anything between the additional to your color that the changed what versus And there close of when can any great. from discussions to as I it sort QX today? is guess there Okay, you expected guys that extent to had you and views is prolonging in are

Virland Johnson

had course. was quite diligence very diligence. And firmly these And the with involve along believe the are there Ethan are difficult. of guarantees, financings poll here due no but of has actually going I you of of go think the question caveat answer study is things shortly well. get extensive. moving the that it'll are specifically, I just we're as one process, by is that quite through I that they think have quality be here. as are again adviser. outside well. to But It's done end be the a to answered an The done Jon there They questions earning there mezzanine near that indicated lot the to a this In process due

Jon Isaac

anything have go head. in next few also hopefully We weeks the so

Operator

appears there no further It are questions.

Unidentified Analyst

any was last there of the that quarter. revolver if of the when stock some about in cash that the amount it decreased been talk you Can available and appears from repurchases has has money

you talk about If could that.

Virland Johnson

Sure.

again they which the making bit definitely is revolvers our on debt lower. but increase are additional specifically a the what is business our so little think quarter, We're see understandable I little some prior have activity debt our in term than we payments been in were a higher Capitala. starting to with

actually $X here of there that just progress right mean So I it really advance Capitala addresses million we've of reducing in anticipated I this operating our now, refinancing. think a debt lot but made a is in

terms this thing So That's that in focus. of right now we're executed the direction moving our that's getting quickly timely.

Jon Isaac

versus shares see we you to we common points press In been shares a the if one almost prior on release had opportunistic year of terms more. of XXX,XXX X,XXX,XXX bullet the the of buybacks have outstanding

we've reduction was shares So result repurchases. all the as of a built

Virland Johnson

And since another year end shares. worth we've $XXX,XXX actually of repurchased

Jon Isaac

I $XX I repurchase it average our believe was believe in that if recently range. Right. somewhere at our looked price I around --

So is we The we price by And possession repurchases we're just buy have shares our all company established regulations. any rule the a opinion that when non our whenever public and in and not if in it to will of of -- in we program we're the have been course money. are securities And February mentioned can course abide new information. material announced continue of we I management repurchase whenever all they believe in that to as of opportunistic and I fair. exercises

but insiders just and management, company also not it's board the members and So itself.

and looking keep to as keep as filings can. try frequently we our updated shareholders So at we'll

Rodney Spriggs

year. other inventory things Texas on rate depending advance the levels in from line fluctuate the on the of the is Capital does of time actually One Vintage

$XXX,XXX be on $X rate as there as to million on available revolver. can So our much line fluctuation the

of that that does affect So some stuff.

Virland Johnson

That's true.

seasonal rate our a Vintage Capital Bank Texas have with We at level. advance

because that QX dollars drastically availability-- season, our Obviously them. with worth holiday deal of of towards we millions Rodney at see and So buy that calendar will you team increases time. of his inventory it

borrowing higher base. more have we So

stay you Phillip you and we had a think I question off.

Unidentified Analyst

being you the there for Capitala limit refinance know I that extensions able existed. given problem. the debt? Can to that time in and different of just that the terms loan the speak a that to to regards to in filings for loan No was with were waivers refinancing waivers

Virland Johnson

very Phillip that's a good question.

in to we're we -- of our perform covenant our Capitala off the all in time. data. filings as the terms with on technically And just a tend occur They situations continuing are First to of result our loan. communication

So we covenant answer to right The now? answer no. in is your questions are

it's As at possible. company we've Capitala disclosed refinance where the are as to right previously, the and working that's now. quickly And indebtedness as

Jon Isaac

refinancing efforts process. as studies doing our in new very the we quality other of They aware they're earning a And where the well have understand and on basis up diligence. Capitala their that advisors weekly is lender are of will are and to due date to

good soon. that from existing the lender. in standpoint our have And we will be -- new we're this and us very all lender relationship hopefully So a very behind with

Operator

question a from have David. We

Unidentified Analyst

Hey, guys.

Just I for in customers different comment a The courteous staff, the week. extremely couple the a I by first City to area there. And was a Stores. to one questions on but the of first in Vintage business Oklahoma And of was they amount stopped know that I into just this want were. you Stock time how impressed

Marquis. at then are Ronnie you for they And to Marquis from new inside is in at that. and congratulations guys they question management So the are teams the the

Jon Isaac

and know, from yes --good and some competitors Some some were from some were hired within. question, others

management from more And tremendous something were it, but make team next think we finalizing some update so a value. the in come that as apprise and And few add the outside we of industry a amount they they just an have from will assure were keep days. of inside, all but hand-picked the soon some are I structure we're I all they everyone announcement phenomenal can and from and will you as

Unidentified Analyst

you Okay, customer? about by a getting And another Jon talked thank you. customer losing

Jon Isaac

Any secured replace From was on company other the to there heard Yes. loss the to that customer in-house They turf process questions. what synthetic line. at decided volume. we've of a customer and has take the a another Marquis

months. it open keep seconds. XX will for it about will for seconds, not XX three we reconvene if another Keep in open We

Jon Isaac

your questions and in no Thank call much for very are again there for to attending we'll for the about days or Since we QX take you will earnings close so and speaking be XX you our to participation. release.

Operator

This today's does conference. conclude

line disconnect may any your at You time.

Live Ventures (LIVE) 15 May 182018 Q2 Earnings call transcript