Slide 1: Investor Presentation Third Quarter FY 2022
Investor Presentation Third Quarter FY 2022
Slide 2: Disclaimers
Disclaimers 2 FORWARD-LOOKING STATEMENTS The words “Live Ventures,” “company” or “Company” refer to Live Ventures Incorporated and its wholly-owned subsidiaries. This Presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In acc
Slide 3: Capital Allocation Strategy
Capital Allocation Strategy Efficient and patient allocator of capital Long-term view Strategically and opportunistically acquire U.S.-based middle-market companies Operate, invest, and grow portfolio businesses Investments in manufacturing, engineering, and capex Bolt-on acquisitions Balanced appro
Slide 4: Differentiators
Differentiators Long-term focused, Buy-Build-Hold strategy Strategic focus on acquiring U.S.-based middle market growth companies, industry-agnostic Value-oriented with focus on accretive acquisitions Patient capital with opportunities to invest through new platforms Investment in existing platforms
Slide 5: ROE Performance & Financial Highlights
5 ROE Performance & Financial Highlights Average ROE 27% $42.7M Adjusted EBITDA (LTM)¹ $283.7M Revenue (LTM)¹ $33.9M Operating Income (LTM)¹ $36M Cash and Availability² $262.8M Total Assets² ¹LTM ending June 30 2022 ² As of June 30, 2022 15.1% Adjusted EBITDA Margin (LTM)¹ $10.49 Diluted EPS (LTM)¹
Slide 6: Share Price Performance & Valuation Metrics
6 Share Price Performance & Valuation Metrics Enterprise Value⁴ 0.6x EV/Revenue (LTM)¹ 2.5x P/E (LTM)¹ 3.7x EV/Adjusted EBITDA (LTM)¹ $26.40 Stock Price⁴ $158.6M 0.8x P/B (MRQ)²³ ¹ LTM ending June 30, 2022 ² Based on fully diluted shares ³ MRQ as of June 30, 2022 ⁴ As of August 22, 2022 Market Capit
Slide 7: Annual Revenue & Adjusted EBITDA Growth
7 Annual Revenue & Adjusted EBITDA Growth See Appendix for a reconciliation of Net (loss) income to total Adjusted EBITDA for the periods indicated 28% CAGR 32% CAGR Revenue (in millions) Adjusted EBITDA (in millions)
Slide 8: Recent Financial Performance
Recent Financial Performance ($ in millions, except per share) 8 Q3 FY 2022 Nine Months FY 2022 See Appendix for a reconciliation of Net income to total Adjusted EBITDA for the periods indicated.
Slide 9: Diverse Portfolio - Main Platform Investments
Diverse Portfolio - 4 Main Platform Investments 9 $169M Total Invested¹ YTD 2022 % of total Revenue by Segment Steel Manufacturing 19% Retail 31% Flooring Manufacturing 46% Corporate² 4% 1Represents the combined purchase prices of Marquis Industries ($30M –July 15, 2015), Vintage Stock ($60M –Novemb
Slide 10: Portfolio Timeline
Portfolio Timeline 10 2015, acquired Marquis Industries, Inc. (“Marquis Industries”) 2016, acquired Vintage Stock Inc. (“Vintage Stock”) 2020, acquired Precision Industries, Inc. (“Precision Marshall”) 2021, acquired an interest in Salomon Whitney LLC (“SW Financial”) 2022, Precision Marshall acquir
Slide 11: Marquis Industries - Flooring Manufacturing Segment
Marquis Industries, Inc. - Flooring Manufacturing Segment 11 Year acquired: 2015 Initial valuation EV/EBITDA ~3.8X Annual revenue at acquisition ~$60 million FY 2021 Revenue $130 million Leading carpet manufacturer and distributor of carpet and hard-surface flooring products focused primarily on the
Slide 12: Vintage Stock - Retail Segment
Operating Income in Millions Vintage Stock, Inc. - Retail Segment 12 Year acquired: 2016 Initial valuation EV/EBITDA ~4.3X Annual revenue at acquisition ~$65 million FY 2021 Revenue $89 million Award-winning specialty entertainment retailer offering a large selection of entertainment products, inclu
Slide 13: Precision Industries - Steel Manufacturing Segment
Operating Income in Millions Precision Industries, Inc. - Steel Manufacturing Segment 13 Year acquired: July 2020 Initial valuation EV/EBITDA ~7.0X Annual revenue at acquisition ~$41M FY 2021 Revenue $49M North American leader in providing and manufacturing pre-finished de-carb free tool and die ste
Slide 14: Salomon Whitney LLC
Salomon Whitney LLC 14 Footnote: Live Ventures owns a 24.9% interest in SW Financial. SW Financial is consolidated into Live Ventures’ financial statements as a variable interest entity and is currently reported in the Company’s Corporate and Other Segment Year acquired: June 2021 Initial valuation
Slide 15: Investment Oversight / Management
Investment Oversight / Management 15 Jon Isaac President & Chief Executive Officer Eric Althofer Chief Operating Officer & Managing Director Founder of the Isaac Organization, a privately held investment company, and the strategic investor behind Live Ventures. Mr. Isaac acquired the then named Live
Slide 16: Acquisition Strategy
Acquisition Strategy 16 Companies in need of new ownership and outside capital to support growth, both organically and through acquisitions Target companies with annual earnings between $5 and $50 million Companies with a defensible market position and track record of stable earnings and cash flow C
Slide 17: Marquis Industries - Case Study
Marquis Industries - Case Study 17 Year Acquired: 2015 Purchase price: ~$30 million, including ~$10 Million in net operating loss carryforward EV/EBITDA ~3.8X At purchase: Revenue ~$60 million EBITDA ~$8 million FY 2021: Revenue $130 million EBITDA $23.7 million Acquisition debt paid off Invested ~$
Slide 18: Vintage Stock - Case Study
Vintage Stock - Case Study 18 Year Acquired: 2016 Purchase price: $60 million EV/EBITDA ~4.3X At purchase: Revenue ~$65M EBITDA ~$14M FY 2021: Revenue $88 million EBITDA $18.2 million De-levered ~$40 million of acquisition debt Increased stores from 57 to 65 stores with 5 more in development Revenue
Slide 19: Key Investment Highlights
Key Investment Highlights 19 Track record of growth and building shareholder value through excellence in operations and disciplined capital allocation Patient capital with long-term investment focus Diversified capital allocation strategy Highly invested management team: Compensation structure align
Slide 20: Appendix
Live Ventures Incorporated Appendix NASDAG:LIVE
Slide 21: Non-GAAP Financial Information Adjusted EBITDA
Non-GAAP Financial Information Adjusted EBITDA 21 The following table provides a reconciliation of Net (loss) income to total Adjusted EBITDA for the periods indicated:
Slide 22: Non-GAAP Financial Information Adjusted EBITDA
Non-GAAP Financial Information Adjusted EBITDA 22 The following table provides a reconciliation of Net income to total Adjusted EBITDA for the periods indicated: For the Three Months Ended For the Nine Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Net income $ 3,472 $ 9,933 $
Slide 23: Non-GAAP Financial Information Adjusted EBITDA
Non-GAAP Financial Information Adjusted EBITDA 23 The following table provides a reconciliation of Net income to total Adjusted EBITDA for the periods indicated: Flooring Manufacturing Vintage Stock For the Year Ended For the Year Ended September 30, 2021 September 30, 2021 Net income $ 16,249 $ 11,
Slide 24: ROE Calculation
ROE Calculation 24 The following table provides the information used to calculate Return on Equity (ROE):
Slide 25: Valuation Metrics
Valuation Metrics 25 The following table provides the information used to calculate the Valuation Metrics: Price/Earnings Enterprise Value Price 8/22/22 $ 26.40 Shares outstanding 6/30/22 3,081,456 TTM Diluted EPS $ 10.49 Market cap 8/22/22 $ 81,350,438 P/E 2.5 Adjusted EBITDA TTM 6/30/22 $ 42,696,0
Slide 26: Historical Financial Data Balance Sheets
26 Historical Financial Data Balance Sheets (dollars in thousands) June 30, 2022 September 30, 2021 (Unaudited) Assets Cash $ 3,625 $ 4,664 Trade receivables, net of allowance for doubtful accounts of approximately $56,000 at June 30, 2022 and $61,000 at September 30, 2021 24,974 21,559 Inventories,
Slide 27: Historical Financial Data Balance Sheets
27 Historical Financial Data Balance Sheets (dollars in thousands) September 30, 2021 September 30, 2020 Assets Cash $ 4,664 $ 8,984 Trade receivables, net 21,559 20,121 Inventories, net 70,747 64,525 Prepaid expenses and other current assets 1,640 1,778 Debtor in possession assets 180 520 Total cur
Slide 28: Historical Financial Data Statements of Income
28 Historical Financial Data Statements of Income (dollars in thousands, except per share) For the Three Months Ended June 30, For the Nine Months Ended June 30, 2022 2021 2022 2021 Revenue $ 68,269 $ 69,095 $ 213,133 $ 202,439 Cost of revenue 45,920 44,029 138,215 128,614 Gross profit 22,349 25,066
Slide 29: Historical Financial Data Statements of Income
29 Historical Financial Data Statements of Income (dollars in thousands, except per share) Years Ended September 30, 2021 2020 Revenues $ 272,981 $ 191,720 Cost of revenues 173,518 116,403 Gross profit 99,463 75,317 Operating expenses: General and administrative expenses 52,246 43,561 Sales and mark
Slide 30: Contact
325 E Warm Springs Rd #102 Las Vegas, NV 89119 Phone: 725.500.5597 Email: gpowell@liveventures.com