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Live Ventures Incorporated (LIVE+11.23%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $111.5 million from $117.6 million in the same quarter the previous year. The decrease is attributed to reduced demand in the Retail-Flooring and Flooring Manufacturing segments.
Gross profit for the quarter was $35.4 million, representing 31.7% of revenue, compared to 30.9% in the same quarter of the previous year. The increase in gross margin was primarily due to improved efficiencies in the Steel Manufacturing segment.
General and administrative expenses increased to $30.1 million from $27.7 million, primarily due to increased compensation expenses related to new store openings at Flooring Liquidators.
Sales and marketing expenses decreased to $4.5 million from $5.1 million, primarily due to reduced activities in the Retail-Flooring segment.
Operating income for the quarter was $0.8 million, down from $3.5 million in the previous year. The decrease in operating income was primarily due to increased expenses and reduced revenue.
Net income for the quarter was $0.5 million, compared to a net loss of $0.7 million in the previous year. The improvement in net income was due to gains on extinguishment of debt and settlement of earnout liabilities.
Cash provided by operating activities was $9.4 million, while cash used in investing and financing activities was $1.8 million and $4.8 million, respectively.
Live Ventures reported working capital of $51.0 million as of December 31, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including amendments to revolving credit facilities and related party loans.
Live Ventures identified a material weakness in its internal controls over financial reporting due to insufficient controls around the financial reporting and consolidation process.
The company continues to focus on its core business segments, including Retail-Entertainment, Retail-Flooring, Flooring Manufacturing, and Steel Manufacturing.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Live Ventures Incorporated quarterly 10-Q report dated February 7, 2025. To report an error, please email earnings@qz.com.