LIVE - Earnings call transcript Q4 2018 | Live Ventures Incorporated

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Operator

Good day, everyone, and welcome to today’s 2018 Fiscal Year-End Call. At this time, all participants are in a listen-only mode. And later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note that today’s call is being recorded and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Virland Johnson. sir. ahead, go Please

Virland Johnson

forward-looking XX, Jon afternoon, of XXXX that to company section Officer me website conference that for My on ended Form Good filing as SEC. Incorporated be can performance, Johnson, about there Virland are name and Spriggs, to filed Live forth Relations as fiscal and remarks the that may hear the forward-looking of well, risks Incorporated; XX-K made found September statements year prepared Chief Live fiscal be nor year-end session call. our statements. Incorporated. Stock, in its with the follow and you. contain uncertainties Inc. guarantees, cause will Q&A the joining These statements as the Isaac, promises of those some a Officer Chief This And welcome our during set number Ventures materially neither its statements from could Ventures XXXX of are actual Thank Today, in are of www.liveventures.com there Please the Investor note SEC Executive Officer these company’s on you today is Chief Rodney remarks. forward-looking and well the Live website www.sec.gov. may Vintage Executive Financial differ at Ventures results today the

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

and another to Ventures you any fiscal and year-end made made associates Live great today’s to forward-looking update any not also of Thank XXXX appreciation us are undertake like do subsidiaries our express as our we and Forward-looking call. would to for I call. for of my management joining statements during today’s everyone today to date, year. statements obligation

and your During financial we at answer end then the our briefly operating the will today, comments. call cover company’s questions and our our year, results for of

results sales over earnings operating reported year XX.X% and products Hard-surface were Some of record an last fiscal of highlights XX.X% and the million The basic at $XXX.X XXXX. products efforts. year Hard-surface company million, share increase profits year-over-year. of continues XXXX annual grow fiscal $XX.X XX.X% up per representing revenue to to gross year-over-year increased $X.XX. now revenue due for

For last million, was XX.X% gross the up is $XX.X which profit year, from year.

million, $XX.X million, compared and In addition, net million our of income last year to was $X.X income was million $XX.X last operating year. $X.X compared to

margin year, $X.X buyer Marquis a of material margin income during $X.XX the margins approximately plus products million, of For lines the turf tax September was we XX%, million asset negatively XX.X% a XX XX, additional due period margin year to net XX.X%. prior tax reform operating $X.XX months’ the of million. synthetic profit X.X%. Vintage gross XXXX. synthetic margin year This year-end the XX, when and regarding by Subsequent of was allocation the in and to levels, months inventories to price but operating the value mix The the acquisition Industries bargain recorded for turf the profit ApplianceSmart from and two after federal assessment extrusion book pound realized company company total new income expense and of deferred of XX.X% income for with of was plus $X finalized raw corporate nylon December price operating sold the and the the purchase and ended extrusion affected value purchase ApplianceSmart. product, recognized XX, XX lines sales XXXX, packing for compares tax deferred on reduced gain, down the sold its purchase fair gross to down to December Tax million, our to rate for XXXX, tax XX% per our associated Cost and gross was of $X.X revaluation. for an both

Texas the Captiala The a with XX, million. was company rates. company at of of September revolving Stockholders’ XX, XXXX, provided of operating June In As negotiated refinanced reported its facility facility with connection under million approximately term plus improved of revolving unamortized Comvest million, debt hand, from revised provided interest $X as In cash also months an company $XXX,XXX September favorable Net XX million Capital credit Bank interest new XX.X%, or company the interest a refinancing, successfully XXXX for XXXX. year the the of approximately an over September charged of XX, cash company’s facility to ended XXXX, term debt debt additional $X.X increase cost $XX.X expense. our XX.X% with $XX.X the rate. million in issuance equity activities ended off the increased lines on an available $X.X credit. by

and morning SEC to either on our filings For view release review website or and details, I website. press invite the our additional you information on our financial filed SEC’s this

Live be participation in questions this comments continued we will time, For your on Incorporated. by call, all are very Rodney interest call. and and – on answer this the standing your that to them. call much thank you those those Ventures and I will At the take Jon on from will for and

you So not. if please have to or announce use a question the system

Operator

[Operator Instructions]

Jon Isaac

question This Jon, is Joseph. from

Unidentified Analyst

continues The about the wonder it, people public? just people, in to funds, does good The I it’s to necessarily people continues the sounds year other, spread word good. the look I happen, that apparently don’t Hi, afternoon. know how good. about by good to company. mutual interested or your I And while quarter company job investing think the about really mean, don’t get eventually, it; sounds and that so do look and

Jon Isaac

and Investor that improve. Relations, of function a to that’s continue we heavily something That’s

on been time and P&L. Over in the our our years, we balance focused mostly and want investing more effort in building and operations and spend that sheet that’s something this. to last resources couple more definitely of But the we’ve

Unidentified Analyst

But said, think – company to necessarily time see effort as want I area. really I and spending in of I lot a that the don’t don’t

I think, right. you’re

much itself are there, the you. in think the that people it. people key that. focusing and but companies find wondered many on will and how is you company just there general, eventually I are Thank learn that out, about because I – pretty answered out so

Jon Isaac

things X.X% reluctant have positions that of a in millions company, – that them some couple we a story, Vanguard companies dollars, more low do owners in names don’t valuation, also have do would be of and huge funds consider company. taken mutual have hedge that to would taking of is take that other from dollars, that filings funds stakes greater that this that billions But the be One of of of of other bigger believe our story mutual that hundreds take to not funds our so I the or X.X% want in in but we’re as you’re filer in or at people we’re makes you valuable sort where – becomes but very greater we in become time our than or than I think them interest, land position of think aware as I this a right big have, think, an the a more and get point. I public said, may

Unidentified Analyst

you. Thank

Jon Isaac

Thank you your question. for

Operator

[Operator Instructions]

Jon Isaac

an year, been It’s of million revenue. exciting $XXX

profitable losing $X shareholders I revenues million, we’ve consecutive seven, a – should was was think it we’re of million, for, million our eight investors, ago that a profitable $X I that now employees, I quarters. just money, lot realize think few $XXX been years at think, XX

the X,XXX always looking as well, is for we’re counting, and for I think anyone acquisitions. over we’re that employees also, call on

a year. If going be we at any, speak, XXXX we you couple, think have we’re good looking to a as is

We’re excited.

Virland Johnson

stores. new going opening to be We’re up some

Jon Isaac

bit Yes. seeing Rodney, a what a you’re you then your half because us almost can maybe from Give of of we revenues. little company’s end snapshot you’re us , what your a division seeing, take give question the can JT? represents on about

Rodney Spriggs

year. had good we’ve a Well, so far

in is things customer we a on with operating e-mails. quarter’s we still better believe we and that base, our One was with engagement I of was call that, messaging so the system we’re had have invested that and the text last mentioned built,

message We’re and anymore. again, XXX,XXX on customers; currently people active text their the same over wanting cellphone are

on and adding great that, week. XX,XXX-plus we’re returns So we’re per seeing

So significantly. that growing is still

the sale one big had sale And buy proof product sale Day is get some slightly of previous tied sales. store up over lines. that And pops messaging. sale, have the Xst week up sales was the that been text that and to same-store Labor same two be was exact our which November we’re Labor year, slightly mail And on will Day in is used for free down, sales. the would the on directly anniversary these year-over-year XX% getting was that our it while same-store big XX% The week-to-week, up we of

of compressed is, were of issues other that to whole retailers up. is in the big but sales PSX and bit, Virland with is huge a – that we on the clear even have that industry of had cyclical the plugging is about part supply videogame mentioned all margins One we things and the product, a with little Sony’s nature, starting some

still to in two a it’s PSX successful the very and margin much from is Nintendo, is One those very, seller sales not is and The very but good, Microsoft items. and think are there Xbox number Switch chip I close is Xbox sales, issue. and is

sell systems for $XXX. You their

years. It’s $X about the the make about of couple You it or $X and long-term, really each. hits

margins Now games on we the that have are and XX% a that in lot XX% product again, more used of to hardware. used

the of a a us, is like video it’s for been with good looks game, little direction the see couple years. a future. like bit it has going bright to which we really be of here the the We next So in but on lag way

Jon Isaac

Comvest. loan this biggest the refinance we milestones a with that that expensive the of was One and of replaced for term year Vintage was

really that So was for Vintage. good

next think, think, do maybe four, maybe We also have store year potentially openings you in I a the on what XXXX? the horizon, for more Rodney, few

Rodney Spriggs

out period, of like sales the be locations: reporting profitable – which open in Texas will in came one a they We November, this lease then really in those Tyler, from those gate be Missouri currently one. It not did on strong. Columbia, would two operating. Good one we day looks prices are but and and so part

that our like open between stores do to agreement As also performing the next possibility they can there if do we keep then as we they do we but now are is with request year, per stores and stores and three September up. could can additional we four Comvest,

Jon Isaac

year. in that principal down been paying think, They helped of in also to addition save the aggressively loan Comvest we’ve cash expense. per about the loan, interest or And tune amounts sweep. have The has $X significant million I so us that, to

this there. period, there some might holiday So be

take question JT. a Let’s from

Unidentified Analyst

Hi, how guys, you? are

Jon Isaac

are How Good. you, JT?

Unidentified Analyst

Doing well.

looked First, the $X that couple to One questions, able that at is haven’t last Virland. the it maybe or correct, there’s on and I mind? Is to XX-K. division. a don’t product-specific, or But for if through for – charge-off of quarter, right guess like write-down of I been the million. that Vintage you Is that tune me about maybe about walk look

Virland Johnson

charge-offs made the I quarter. any division in don’t last think, Vintage we

Unidentified Analyst

What were to last division for compared the Okay. then the on I and guess? this, financials Vintage quarter, the

Virland Johnson

slipped new healthy We specifically comparable. again, because year-over-year. bit, products is of earlier, up and on very little Rodney very don’t is has are numbers the margin margin, that Gross Vintage’s little well. business are revenues as the and mainly QX. report bit. a But necessarily doing down indicated a in The

that I gross by doing. a and Vintage real line for give by look how – will is revenues I feel product profits may would you be at So look our a and product would line, having

Unidentified Analyst

Okay. may And acquisition? acquisition, through you that ApplianceSmart be the us this then But terms XX-K. on again, in walk can of it the

Virland Johnson

Appliance not Recycling a a million XX Inc. Terms due interest then for do And little and of Centers that it on another between note. accruing over couple was is note principal It and And to amount December is converted currently years. to America, ApplianceSmart QX. we were and paid from originally $X.X of a due to note now or paid a the a then

Unidentified Analyst

is What total on the the balance note? Okay.

Virland Johnson

It’s about $X.X million.

Unidentified Analyst

what what is then the there I The Okay, were for two the basement I’ll you amount flow my fiscal of I you so all hang questions. guess, or right, bargain question, much. or up and for my guess, the income And that basement year, and thank guys last upgrade, will, all – for total way if bargain – taking to bargain basement, statement, XXXX thank the through the finance? you the

Jon Isaac

then and $X.X But gain audit. was QX bargain million. steps was It total brief to was in there two due a adjustment purchased in the

Unidentified Analyst

Okay.

Jon Isaac

ApplianceSmart, it only applied to entity. any other that didn’t apply to And

Unidentified Analyst

Okay.

were the fully and just that in the ApplianceSmart, EPS it’s So reflected number?

Jon Isaac

Yes.

Unidentified Analyst

All Thanks, Okay. guys. right.

Jon Isaac

took one-time There hits. of was and tax revaluation. hits expenses such also deferred We asset negative as couple the non-cash a positive

Unidentified Analyst

Yes.

Jon Isaac

Thank questions. you for your

Unidentified Analyst

what And Jon? does Sure. outreach, those net

Jon Isaac

we’ve bargain to of P&L. NOLs fully tax that, our Well, beginning we effect of to the in over. million on our $X reval we for $X Act also remembers tax being the total When absorb have assets if cash hit those. of But at the to Offsetting the a P&L. reval had deferred a the million a into numbers – year, pickup numbers had have that into the the purchase. carried baked we baked $X.X took on substantial the we been deferred also That taxes due transition assets. came hit million. to in that revaluation year At that December, those is ApplianceSmart expenses are fairly about has related everybody in making right have had income to into the in And EPS Tax of fully we lot this,

it’s see Industries So want we’re I we don’t wash mention is there, the once I – that things just are offset to of a doing see topic by mean, some since the other ApplianceSmart, Marquis but But largely the on really phenomenal. gain something. us. for we

so ApplianceSmart contributing we but I we related The to some fixing to think, breaking negatively not on doing in doing sometimes that records, that bottom issues good. really looks the are is prospects – month. every and months, close the high of good, is sometimes just middle are good. Vintage it’s not high-overhead line. cost, some growth stores Vintage may are

lot this ApplianceSmart. think time So, But But devoting and is good right attention our and main we promises. of are turnaround on right now, will be we a now. no the focus an

Virland Johnson

point The of line that that off, from that, line was help is aware going other lowest synthetic the thing, key And Marquis. I numbers more. be margin-producing selling at had think, shareholders the should Marquis it’s our we even to even by

Unidentified Analyst

Thanks, Right. guys.

Jon Isaac

you. Thank

Virland Johnson

you. Thank

Operator

Instructions] [Operator

Jon Isaac

for I synthetic closed recently. think sale it’s to a that turf shareholders important understand

for – fiscal it that in what, about, year, The was disclosed that X.X didn’t but the to So company in turf happen was other we synthetic million. the happened. line subsequent event, sold XX-K, some

Virland Johnson

million? $X.X

Jon Isaac

availability about sale in that, that And but towards that some helped just us there was at went of million line payoff this the $X.X under buyer and loans, between agreement cash, consulting equipment. that term half was then and our Marquis credit price cash of and to Marquis. of in signed a addition

other a about. it Wes Any think, I new been new a cash of also really repurchase Marquis. our redeploy. that February some questions? Mr. bring from perspective, announced July, program But We at we neutral. it bottom $XX appointed can excited will the in In we line does we’ve Godfrey CEO in million So was announced be month that

Operator

have And time. on further phone the this any it does questions look line like at we

Unidentified Analyst

– give your investors views for XXXX? some Maybe, Jon,

Jon Isaac

very XXXX. As excited for we’re I mentioned,

prospects we may existing may We’re looking good the believe chance them be be both our both two of acquisitions, to that to that bolt-on be make potential – able there’s at of able I would companies. platform we sort a for a

very So excited those. we’re about

look also sell who weekly desk sellers, potentially But all our the from us addressing get and We’re We them the we of focused come we across at bankers. sorts other get investment private acquisitions. want to two They basis. of a on directly. to them ApplianceSmart on from people places, concerns acquisitions and

we and as had we those with a proceed at have by criteria we’re here very look it. certain who we we careful to and and So

the but where the think it very may we two is just few have a a company usually year, years. not shown will a maybe a the and of and be in one Live we’ve acquisitions, it is lot we offset. year, historically, goal where we that it’s taken long-term have healthy So some our of acquisitions as as years now last may But company per acquisition, good

Operator

Instructions] [Operator

Jon Isaac

question from take the call – Alan. [ph] Alan from Let’s

Unidentified Analyst

[indiscernible] a off of missed – XX-second Could five first that your was the I is you first main your presentation. and before presentation? of summary Hello. minutes This for Q&A me five minutes the cut actually. and give

Jon Isaac

the at the I’ll the from missed points bullet presentation. coke just press the Yes, You high-level, maybe a – release.

Our have revenues were $XXX around I’ll million. Virland.

Virland Johnson

$XXX.X $XX and Yes. Revenues our XX.X%; our to our is is a stands are flow up $XX.X million, us grow X.X% I year million, that most up grew to into one about at year-over-year. was for the million, say up profits is operating that at $XXX looking It out EBITDA gross thing will $X.XX; year-over-year; XX.X%; at assets are EPS million. and cash XX% we’re over XXXX. basic growth up our non-GAAP the

something. $XX or We’re million almost at

Jon Isaac

Yes.

What Okay. we can you? answer else for

Unidentified Analyst

Thank you. good. That’s

Jon Isaac

right. All next someone XX you. the no end there’s We’ll get Thank seconds if call to. other questions

Virland Johnson

you XX be will We to days. back in

Jon Isaac

Yes, next the… for for the

Virland Johnson

For the call. QX

Jon Isaac

…first Thiago] quarter. do Thiago? another San [ph] from We [San question have

Unidentified Analyst

Jon, Hello, hear you me? can

Jon Isaac

you. hear can we Yes,

Unidentified Analyst

Yes.

my was company, the of you right? instead to question increasing acquisition? So repurchases considered the question share in of have So regards the liberation was, my

Jon Isaac

addition We material just we’re stock have in possession individually, we cannot periods. in that been if company to we back Remember in like nonpublic back have blackout of And the buy information. active acquiring that, can. whenever shares we us

figures. in XXX,XXX rules. start acquired on believe the But we XXX,XXX represents adhere do when – company the looked maybe of open approximately yesterday repurchased XX-K we we So course, I we strictly repurchase figure X% program. that to, recently the which able I we just of the market. shares, to, the was of these are buy round at since the

acquired a sheet we despite less, perspective. the a believe around now fact we’re at $XX stock are stronger that last I share, year balance XX% we now from and yes, – at So around

a horizon. and have flow has Our we more on increased lot cash the

So terms at do had successful yes, of and Live been in in as we it of and back, potential of acquisition buying itself Ventures we look amounts incremental past. a the

Unidentified Analyst

All right. very you much. Thank

Jon Isaac

actually, We note market I why I market as weeks a come the ago Virland, more the really comment that look three does. how why why stock stock at lot the if you XX%, a mean, up? XX% it investors whole questions from say, On get behaves way on the XX%, who of was down, can’t valuable. the

it time the So whenever rate presents And it’s is a company a whole and we take take at buy haul. we’re our believe the been advantage opportunity the market for has sold – a good, building day long it stock as and but the a we itself at of back. it down, is we that and we

very, company made that the see that. will And that. as I proven will and our we XXXX, buying probably very doing fit it community clear aggressively believe in shares we’ve So investment we’ve in and we to are be be we we

a few are we’ll So months where from now. see we

Virland Johnson

forward call, that Well, to you you. to thank with that and We – those are of you days to you about the listening in talk look you you talk you soon. the for to the We’ll participation for XX again investors asked your call. again on to talking thank Thank questions QX. to

Jon Isaac

you. Thank

Virland Johnson

Thank you.

Operator

conclude Thank for does participation. This you your today’s program.

disconnect at any You may time.

Live Ventures (LIVE) 28 Dec 182018 Q4 Earnings call transcript