LIVE - Earnings call transcript Q3 2021 | Live Ventures Incorporated

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Operator

Good day, everyone. And welcome to today's Live Ventures Incorporated Third Quarter Fiscal 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. pleasure Financial today’s Officer. my Virland over now Chief Johnson, is to program turn to It

Virland Johnson

Steel million. revenue. or Sales XX, the the were I XXXX, -- we compared expenses XX% compared for last administrative the segment call. Revenue for of you related increase. million year million of last CEO, -- Steel the grew nine led income an We the gain million. last Thank XXX%. our from X.X% quarter labor third revenue as months segment the gross increase the from sales an the months X.X% of four of to income for the XX.X% company nine of our nine the for in compared the to $XX.X months and last the down same our same months margin the XX.X% of gross performance new signed its Revenue up last expenses to expenses period million for up view increased revenue due margin fiscal -- year. at the delivered year company the its to basic last $X.XX company $XX.X marketing issuance has Live percentage of and for from improved ended $XX.X form nine were slightly and the versus for last XX%. to third locations, Earnings same million growth from the forward-looking profit year-to-date. was from same to posting compared quarter to has XX% down $XX.X quarter's were last of down same months year, them for million for earnings $XXX.X million, XX, Again cash and of of changes, June gross $XX.X company as on comparable XXXX. reported million nine Flooring X.X% ended the Live see to of as price $XX.X both same marketing XX% due grew company for basic year. $X.X X% the million from period expense compared million, nine payable Steel company $XX last to Operating Due to Sales as Amy. in XX-Q quarter with availability assets revenue Vintage year, the period to year by The the businesses well margin The to last the compared the $XX.X inflationary market. XX-Q. Ventures direct mixed Earnings last www.liveventures.com Cash company joined a $X.X SEC Working months quarter, the million. common of same gross the over million tightening various and labor segment revenue last few to million, for XX.X% revenue year quarter by you, up for or months Program on year, of credit in was revenue, this $XX.X year. the XX%. carpet mix revenue the same for The were had leases fiscal XXX% -- share were compared for for million, period as Good the million The also and period. or also for profit million. to Retail $XXX.X to Retail revenues for of $XX.X income segment per period to $X.XX, the government dip Form third and months million for making execute the payable gain In period profit was quarter of by the XX.X% million per last the Operating at filed $XX.X The $X.X had was million new the $XXX.X our for due a common percentage third growth $XX.X General quarter, year sold period providing XX.X%. year, same XX.X% and segment for to X.X% $XX.X a compared of proceeds SEC months up XX.X% on in of XX.X%. $XX.X our again the total for gross the $XX.X to the a sales and balance today. are recorded segment versus slightly third segment to million period approximately administrative COVID quarter margin as XX% $XX.X million of nine Other XXXX, long-term fiscal $X.XX. of XX.X% for revenue to quarter. was September from of party capital income revolving to the XX, generated increase for the margin due segment for quarter $XX.X our the revenue $XX.X afternoon, on XX, $X.X investing of an quarter statements to of percentage XXXX. of hardwood www.sec.gov XX.X% when revenue. we and gross are our June Overall, proceeding combined XX.X% Gross year quarter in of period up share for for in Retail stimulus we $X.X to the of or the Chapter months of nine mainly down The strong $X.X the $XX.X filing was was $XXX.X sheet today as Ventures website compared $XX.X recording million million third Steel nine a ended Protection $X.X XX.X% for through million, nine million, included $X.X $X.X million for the Flooring last various last period XX historical nine as or a gross Net $X.X profit same and in XXX%. Overall, in driven value was the recorded nine for million, $XX.X loan was the quarter XXX% as of this quarter compared the that were to June for Through reduced in Retail to lines of $XX.X based for XXXX. Isaac. this the and comparable operations the a Gross and months nine million million settlements compared XXX%. the SEC growth the small its $X.X for of recorded and of General XX% for of and million from a period third XX.X% other months was income shareholders quarter third the as increase the the related period $XXX,XXX the gross of XX.X% Note copy ApplianceSmart $XX.XX, nine quarter quarter were $XX for revenue year Net strategy Jon deleveraging. was year. from notes revenues million. versus -- the million, everyone. of months percentage the million managing months, respectively. Payroll pressures. locations. a profit minutes, third for ended by are debtor Welcome and million, and margin was Gross up of $XX.X debt ended on is revenue nine same as million I'm Gains million grew from million, gross of upon of the under as percentage primarily of dipped the profit slightly process filings. our XX.X% company from $XX.X forgiveness million increase. the to for to those and used months XXXX. or million opening slightly Flooring from for products the comparable nine million, by third of $XX.X increase year. for year some two for slightly by Flooring revenue. payments million, year second risk notes to subsidiaries, mix to cash same to with up are quarter payments nine to XX.X% months, XX%, or for $XX.X to on June last profit prior of an the five third Form flooring from XXXX million $XX.X profit continued increase. third best had our months and increase revenue. $XX.X up to end XX.X%. XX $X.X dipped Net from were million

property and invested same for months, as last nine the year. to company million $X.X million the For $X.X the compared period in equipment,

during three making securities SW minority acquisition-based XXXX, Salomon its continued on in buying themselves. it’s months to of opportunities growth Whitney DBA acquire in XX, the pursuing and as The third LLC, balance company a ended shares broker back During common for in investment of strategy, its continues $X the dealer to to the market company. interest company approval FINRA stocks the financial of currently the also present execute the the June million quarter invest a

to XXX,XXX I XX from XXX,XXX shares to year live or end the as June company the million that, year now common million from from XX%. applicable repurchased and up of prior questions will conference as of up shareholders is take With our has of of on of equity Stockholders those XX.X end. our Jon As shares you XXXX, prior XX, call.

Operator

Instructions] [Operator

Virland Johnson

take call Jeremy from a [ph]. Let's

Unidentified Analyst

I'm Whitney is the and one curious of just use? and as the about like, why What's about more did acquisition Tyson if little metrics you a acquisition, Salomon I'm there there? founded you just what the most curious to the acquisition bit

Jon Isaac

we looked other potentially level, things we your all Jon's the for But management a Live at that high team, that It's a for we very our have and press it's being sorts for you investment speaking. as -- acquisition for such management approval. stated this we've running Good to acquisition historical found we as and think this be we've have for a good stable FINRA think excellent Tom. Thank of -- a the amazing a do -- there's acquisitions, that interest reasons. long-term. a We predictable, we until and Larry obtain And question. an releases is up the variety revenues of with Salomon Right roll opportunity. as team now minority in this, But we at good in we long-term a Live.

over Let's move Joseph, to please.

questions? Your

Unidentified Analyst

you discussed to you numerous it What transitory, Thank term. your much. going think some contexts and think it's been outlook and some it's affect Inflation is think in on people longer the do company? it's Hi. has how very people

Virland Johnson

is Our the is to be is in not moment It lasting, feeling specifically somewhat Steel be our longer to transitory. at market. inflation going going

segment that probably it feel Retail. much Flooring Flooring Retail will also our it. by be impacted as our not We but and Steel will definitely segments segments and affect

Unidentified Analyst

to? In what way, I mean, it’s going think do what you -- how

Virland Johnson

big very Resin it I mean, is Flooring pass with on of Steel. lot -- has pass-through. -- example, the well we for are of side, buyer there's same a resin. and moved as A

on our of cost we pleased or Marshall, to Precision dollars somewhat according value the the of of with are lower so of We GAAP, and with company paper, made commodity prices true acquisition Steel, shut just market. the when book we bought of course, speak, up the we've millions

both in had your question. companies we But book that passed percentage that We've that don't at Precision. at so to increases And lot I I forced of Marquis of it also as to and customer. -- a mentioned it price answers numerous helped are -- us cost. on tell And it inflation I Hopefully the you can't what is regard. just

Unidentified Analyst

do how the going asking where have, I That's I'm any inelastic. guess what it increases price I is market you you really to it? response might to that the to elastic have see was with is,

Virland Johnson

We feel pricing that market is feel it continued We structures. feel to if we any segments elastic. the already also and changes more prices inflation, with it'll in be our more met higher the in responded both elastic there's

Unidentified Analyst

Okay. you Thank both.

Operator

no [Operator Instructions] And we questions of appears as further have it now.

Virland Johnson

[ph]. Let's a take from question Robert

Unidentified Analyst

Yes. was SEC I prevail on complaint. wondering What their just the impact the were in if would the to company? be

Virland Johnson

court we vigorously look been instructed to our all that our counsel And discuss company categorically matter. ourselves. by and Robert, trial. say we the to charges not that's in a I denies defend the good will and will day that question. forward We've I and that the will vindication SEC again, repeat

the that's to question -- involves I can that regarding that SEC. regarding applies can comment the really I a else the who -- only that's also question way thing So that has only anyone

We categorically we we will vigorously ourselves. defending deny -- everything will be and

Did So the I you question, appreciate others? have though.

Unidentified Analyst

really Everything the to main That's else No. be fine. seems one.

Virland Johnson

Kumar you. a Let’s question Thank take [ph]? Kumar. you. from Thank

Unidentified Analyst

from here. Calling Hello. U.K. Hi. the

Can about I allocation. a question, So not question. No, same the capital a had hear we question me? different guess you

Virland Johnson

Yes. Yes. it? hear your What question? repeat Sorry. you. Can can is you We

Unidentified Analyst

Hello.

Virland Johnson

your Kumar? question? What Yes. is Yes.

Unidentified Analyst

Yes. Okay.

So my capital question was allocation. Yeah. around

plans, are forward Do planning of question where is to paying capital thinking? now? want have what current take is or my versus you the price guys market How So share now around share debt? the you some are buybacks of Do allocation? you you any going the down advantage with given

Virland Johnson

Or circumstances. an week-by-week, that's And outstanding is, for due or cash preserve that of obvious could ready was we we we or soon? buyback on good pay the is it's price? debt That's payment two is, debt many on another do – So buybacks It have our really of or required debt basis. can really It many, a I number shares outstanding month-by-month one have Share question. do a depends fluid program, repurchased since since which be and that three, you off stock should very, reduction February the share acquisition? certainly very our company any to be, what varies any many, XXXX. that's the tell XXX,XXX should day coming beginning answer. we the -- beginning,

in spiked So notice I decrease think just we've quarter year. the big which million XX-Q our fiscal of filed, since you $XX the done is million, to well. from The the then. that beginning we that since pretty In stock -- that $XX since a has September will long-term debt decreased XXth,

feel and from that, that acquisition if shareholders, opinion, So close my for in you of operationally, repayment million the this very it done money an price of a generated repayment of use it and or we've can we that we very, for equipment. stock we've whatever I that focused But we couple a we've best what opening are debt eye cash we if plant debt the in should be feel else, or keeping on preserve extremely well, or operations. quarters, is be, thing predominantly. is on may new will is $XX This last one that do tell we could it of focus new investing on we

question. your those things. So We appreciate think about

over move Let's to Marcel [ph].

Unidentified Analyst

Jon little simple Yeah. bit acquisition you you. more question a The Would here your for about criteria? talk

Jon Isaac

Acquisition criteria?

Virland Johnson

Criteria?

Unidentified Analyst

you acquisition? for do in What Yeah. look

Virland Johnson

things. We look for many

think have have our But important every team at an we look subsidiaries. If website, number companies for. we two, that and management are, amazing amazing criteria you I Number generally profitable. what speaking, parent our look team look as an stellar to one or is a management of at as we one, for we

two So those are the easy ones.

We generated and The we that the know year generate is million like next in third generating don't the cash that to for year. fact no million call one don't they high and had brainer companies prior. million like to of We We like that or consistency. stability that continue amount in volatility. third earnings, type the over company stability degree like one for that $X acquisitions, they years like year to the and look flow companies a in we we been will I $XX a a $X

So more dozens have at year. that's look or and -- evaluate and we anything of I scientific don't companies every specifically, dozens

So we few year very acquisitions. We are make very, a we right maybe or them even highly selective, or a lot acquisitions three can acquisition, be we're and very one afford selective. We wait of both-on two only to we and or for can make the because acquisitions,

Unidentified Analyst

Sounds good.

good. Sounds

to how Live? Now just you do quick up, management follow a for current retain work

Jon Isaac

Retain management.

Virland Johnson

generally the the on sellers to else. acquisition any company that founders Yeah. they remain than more -- know because or Board, they in like mean, we the speaking, we I anyone make, are the

so And have try contracts. we employment -- we sign to

best, give We think perform -- have we and subsidiaries, what level, I CEOs believe them do employment we and with and that our them do we we that contracts do what a what we let high do. mean, with well. is autonomy. And like this what is they we they do is -- most of at do This we they let financially we them best. them incentivize to best

the We it's your over appreciate question. worked well years. So

been to move Let's over waiting for Jeremy. question. He's the

Unidentified Analyst

details mentioned you up I roll am strategy a on or to the that? hear more I and is what also further like would role earlier curious as, strategy of about just some

Virland Johnson

we how finance that potentially up and basically today. have a but be the They quote-unquote, going works, would, ups roll industries is that to into would fit. to roll Without details whatever companies much similar too on similar company existing, acquiring

can make part companies and what wants the does, But acquire So we that potentially up them smaller, how Salomon similar that’s them as to seller they of perhaps, example. what are about perhaps, to in ups… to Salomon, your use your Salomon, are retire, – that's roll roll initial question

Unidentified Analyst

Okay.

Virland Johnson

…work.

Unidentified Analyst

Okay.

Virland Johnson

to… over move Let's

Unidentified Analyst

Yeah.

Virland Johnson

… another he Joseph [ph], question. had I think,

So, let’s…

Unidentified Analyst

to you I and that -- of question done, just the neglected well say I thank did roll work for come that wanted the to and integration? I which you you're say, considering similar? company. thank in and the hard just done. back reason is, thinking listening, to But vertical really -- I about? you're main to The got Is about Actually, is you not Is ups, all talking think which queue well when you for that I are the something me, say, also was the up

Jon Isaac

We and always also roll look of at of portfolio up vertical integration with our any would existing now? opportunities do. terms that So, have we yes, that strategy work we our right in holdings

Unidentified Analyst

you. Thank

Jon Isaac

and for you commendation, the is the we risk we any on Joseph. all basis going opportunities to you positive. We this a your going Our all what and go thank ahead. involved and return presented try your We with versus on elsewhere for shareholder looking to weekly Thank other what's value. opportunities. Any evaluate get at We're other we do Robert, what's in and maximize and have opportunities questions? whatever next,

for a take question Robert. final Let's

Unidentified Analyst

there I stock buyback just in wondering, a was authorization Yes. is the place at moment?

Virland Johnson

on February stock XXXX. June is, a extended yes. X, publish -- Back that in XXXX the There buyback program put release press XXth, was we May, out May the to

program. years it $XX and $X.X that left So left on about million was There's program. we million have around a under we have another -- the it on originally three

Unidentified Analyst

I that It an I Yeah, observation. authorization. going you like to to time Yeah. know not is see. tell wonderful would that… exercise seem This a

Virland Johnson

or we beginning think done well market, in or the can or and like a $X shares as to you XXX,XXX tell will We've believe pounce in I since back will something very, see that this. buy we I continue bought our them whenever we opportunities to that the shares at $X single-digit, Yeah. report and we I very you we disclosures.

Unidentified Analyst

Okay. Thank you.

Virland Johnson

[ph]. John you. Thank

Unidentified Analyst

for taking my Thank you call.

Just ownership what increase efforts research? doing on you institutional are equity try curious get to to and

Jon Isaac

work those are of go to extend have is the efforts, but for Right in on stock plans institutional somewhat to ownership. in actual continue and Interesting. do the low have somewhat shares that Recent will as we floating to forward. we that our terms market now We space. increase float events

Virland Johnson

And we already do have…

Unidentified Analyst

Okay.

Virland Johnson

we at ownership, look institutional Geode have we Vanguard, of information, if we available … you own have you'll our X.X% publicly Technologies see have Renaissance company, that Capital…

Unidentified Analyst

sold have out. You that

and that -- out trying You of the on the might out. so have broadening which to I think is… you about I be curious lot you're just you shares just, how mean, a the personally investor was sold in base, of stock

Virland Johnson

Yes.

Unidentified Analyst

I think helped.

Virland Johnson

Yes.

to and there We are more that -- bigger size getting quickly we institutions. we're a appealing pretty getting to more become to certain

For have awareness. see smaller But today. very than listening. a much long and institutions were our in and we I on are we small are a dialing more that where We're cap we call, are market had time, getting could the they there. financials getting were potentially that people

And it's mix so, -- change. we to time going be think will in

Unidentified Analyst

Thanks. on quarter. the Nice job

Virland Johnson

the first whereby the mid-February, announce will call time will much. the But will -- which discuss quarter. speak Thank changed around the full quarter. next And the end we you next our we -- I will the year believe will we format at publish very year. and end will XX-K, of the is be time which point, the XXXX we first the discuss of fiscal call. that we'll With filing that, is at next we've or -- this be The the be when will year the earnings be calls

you see we look on around from for on Thank So to you will the the call, next which again everybody forward is we hearing and mid-February. call. next everybody us joining

Live Ventures (LIVE) 17 Aug 212021 Q3 Earnings call transcript