Live Ventures Incorporated : Second Quarter 2025 Financial Results Conference Call Release

About this update from Live Ventures Incorporated

May 8, 2025 Live Ventures Reports Fiscal Second Quarter 2025 Financial Results LAS VEGAS, May 08, 2025 (GLOBE NEWSWIRE) -- Live Ventures Incorporated (Nasdaq: LIVE) ("Live Ventures" or the "Company"), a diversified holding company, today announced financial results for its fiscal second quarter 2025 ended March 31, 2025. Fiscal Second Quarter 2025 Key Highlights: Revenue was $107.0 million, compared to $118.6 million in the prior year period Operating income increased $2.9 million to $2.1 million, compared to an operating loss of $0.8 million in the prior year period Successfully negotiated a $19 million reduction on the balance owed under the Flooring Liquidators, Inc. ("Flooring Liquidators") seller note, which, when including the cancellation of accrued interest and other items, resulted in a $22.8 million net gain for Live Ventures Income before provision for income taxes was $21.1 million, compared to the prior year period loss before benefit from income taxes of $4.5 million. Income before provision for income taxes for the second quarter of 2025 includes the $22.8 million gain as described above Adjusted EBITDA¹ increased $2.0 million to $6.4 million, compared to $4.5 million in the prior year period Repurchased 31,323 shares of the Company's common stock at an average price of $8.28 per share Total assets of $393.6 million and stockholders' equity of $88.9 million as of March 31, 2025 Approximately $26.6 million of cash and availability under the Company's credit facilities as of March 31, 2025 "Continuing the trend from the first quarter of fiscal year 2025, our Retail-Entertainment and Steel Manufacturing segments delivered improved operating performance in the second quarter, with higher operating income and operating margin compared to the same period last year. At the same time, ongoing softness in the new home construction and home refurbishment markets continued to pressure our Retail-Flooring and Flooring Manufacturing segments, where reduced consumer demand impacted performance," commented David Verret, Chief Financial Officer of Live Ventures. "We are pleased with the operational improvements in our Retail-Entertainment and Steel Manufacturing segments during the first half of the year," stated Jon Isaac, President and Chief Executive Officer of Live Ventures. "In response to our flooring businesses' industry-specific challenges, we are implementing measures to enhance efficiency. In the second quarter, we initiated large cost-reduction initiatives in the Retail-Flooring segment, which have already resulted in significant savings. We remain focused on operational excellence and are confident in the long-term fundamentals of our businesses." Second Quarter FY 2025 Financial Summary (in thousands except per share amounts) For the three months ended March 31, 2025 2024 % Change Revenue $ 107,013 $ 118,626 -9.8% Operating income (loss) $ 2,092 $ (838) N/A Income (loss) before provision for income taxes $ 21,103 $ (4,498) N/A Net income (loss) $ 15,866 $ (3,281) N/A Diluted earnings (loss) per share $ 5.05 $ (1.04) N/A Adjusted EBITDA¹ $ 6,446 $ 4,457 44.6% Revenue decreased approximately $11.6 million, or 9.8%, to approximately $107.0 million for the quarter ended March 31, 2025, compared to revenue of approximately $118.6 million in the prior year period. The decrease is attributable to the Retail-Flooring, Flooring Manufacturing, and Steel Manufacturing segments, which decreased by approximately $13.2 million in the aggregate. Operating income increased approximately $2.9 million, to approximately $2.1 million for the quarter ended March 31, 2025, compared with an operating loss of approximately $0.8 million in the prior year period. Operating income increased primarily due to lower general and administrative expenses and sales and marketing expenses resulting from cost reduction initiatives at the Retail-Flooring segment and lower general and administrative expenses in the Corporate and Other segment. For the quarter ended March 31, 2025, income before provision for income taxes was $21.1 million, compared to the prior year period loss before benefit from income taxes of $4.5 million. The increase in income before provision for income taxes is primarily attributable to a $22.8 million gain on a modification of the Flooring Liquidators seller note. Adjusted EBITDA¹ for the quarter ended March 31, 2025 was approximately $6.4 million, an increase of approximately $2.0 million, or 44.6%, compared to the prior year period Adjusted EBITDA of $4.5 million. Adjusted EBITDA increased primarily due to lower operating expenses at the Retail-Flooring segment resulting from cost reduction initiatives. As of March 31, 2025, the Company had total cash availability of $26.6 million, consisting of cash on hand of $6.9 million and availability under its various lines of credit of $19.7 million. Second Quarter FY 2025 Segment Results (in thousands) For the three months ended March 31, 2025 2024 % Change Revenue Retail - Entertainment $ 18,467 $ 16,842 9.6% Retail - Flooring 27,399 32,032 -14.5% Flooring Manufacturing 29,820 34,180 -12.8% Steel Manufacturing 31,321 35,488 -11.7% Corporate & Other 6 84 -92.9% Total Revenue $ 107,013 $ 118,626 -9.8% For the three months ended March 31, 2025 2024 % Change Operating Income (loss) Retail - Entertainment $ 2,498 $ 1,784 40.0% Retail - Flooring (2,741) (3,023) 9.3% Flooring Manufacturing 1,483 1,978 -25.0% Steel Manufacturing 2,196 872 151.8% Corporate & Other (1,344) (2,449) 45.2% Total Operating Income $ 2,092 $ (838) N/A For the three months ended March 31, 2025 2024 % Change Adjusted EBITDA¹ Retail - Entertainment $ 2,755 $ 2,153 28.0% Retail - Flooring (1,778) (1,849) 3.8% Flooring Manufacturing 2,272 2,897 -21.6% Steel Manufacturing 3,742 2,331 60.5% Corporate & Other (545) (1,075) 49.3% Total Adjusted EBITDA¹ $ 6,446 $ 4,457 44.6% Adjusted EBITDA¹ as a percentage of revenue Retail - Entertainment 14.9% 12.8% Retail - Flooring -6.5% -5.8% Flooring Manufacturing 7.6% 8.5% Steel Manufacturing 11.9% 6.6% Corporate & Other N/A N/A Total Adjusted EBITDA¹ 6.0% 3.8% as a percentage of revenue Retail - Entertainment The Retail-Entertainment segment revenue for the quarter ended March 31, 2025 was approximately $18.5 million, an increase of approximately $1.6 million, or 9.6%, compared to prior year period revenue of approximately $16.8 million. Revenue increased primarily due to changes in product mix toward new products, which generally have higher selling prices. Gross margin increased to 59.1% for the quarter ended March 31, 2025, compared to 58.4% for the prior year period. The change in product mix contributed to the increase in gross margin. Operating income for the quarter ended March 31, 2025 was approximately $2.5 million, compared to operating income of approximately $1.8 million for the prior year period. Retail - Flooring The Retail-Flooring segment revenue for the quarter ended March 31, 2025 was approximately $27.4 million, a decrease of approximately $4.6 million, or 14.5%, compared to the prior year period revenue of approximately $32.0 million. The decrease in revenue was primarily attributable to the disposition of certain Johnson Floor & Home Carpet One stores in May 2024. Gross margin for the quarter ended March 31, 2025 was 34.4%, compared to 36.5% for the prior year period. The decrease in gross margin was primarily driven by a change in product mix. Operating loss for the quarter ended March 31, 2025 was approximately $2.7 million, compared to an operating loss of approximately $3.0 million for the prior year period. Flooring Manufacturing The Flooring Manufacturing segment revenue for the quarter ended March 31, 2025 was approximately $29.8 million, a decrease of approximately $4.4 million, or 12.8%, compared to prior year period revenue of approximately $34.2 million. The decrease in revenue was primarily due to reduced consumer demand, as a result of the ongoing weakness in the housing market and uncertainty about the current economic outlook. Gross margin was 27.5% for the quarter ended March 31, 2025, compared to 25.6% for the prior year period. The increase in gross margin was primarily due to changes in product mix. Operating income for the quarter ended March 31, 2025 was approximately $1.5 million, compared to approximately $2.0 million in the prior year period. Steel Manufacturing The Steel Manufacturing segment revenue for the quarter ended March 31, 2025 was approximately $31.3 million, a decrease of approximately $4.2 million, or 11.7%, compared to prior year period revenue of approximately $35.5 million. The decline was primarily driven by lower sales volumes at certain business units, partially offset by incremental revenue of $3.8 million at Central Steel Fabricators, LLC ("Central Steel"), which was acquired in May 2024. Gross margin was 21.2% for the quarter ended March 31, 2025, compared to 14.3% for the prior year period. The increase in gross margin was primarily due to strategic price increases as well as the acquisition of Central Steel. Operating income for the quarter ended March 31, 2025 was approximately $2.2 million, compared to approximately $0.9 million in the prior year period. Corporate and Other The Corporate and Other segment operating loss was approximately $1.3 million and $2.4 million for the quarters ended March 31, 2025 and 2024, respectively. Six Months FY 2025 Financial Summary (in thousands except per share amounts) For the six months ended March 31, 2025 2024 % Change Revenue $ 218,521 $ 236,219 -7.5% Operating income $ 2,854 $ 2,703 5.6% Income (loss) before provision for income taxes $ 21,676 $ (5,404) N/A Net income (loss) $ 16,358 $ (3,963) N/A Diluted earnings (loss) per share $ 5.20 $ (1.25) N/A Adjusted EBITDA¹ $ 12,191 $ 13,153 -7.3% Revenue decreased approximately $17.7 million, or 7.5%, to approximately $218.5 million for the six months ended March 31, 2025, compared to revenue of approximately $236.2 million in the prior year period. The decrease is attributable to the Flooring Manufacturing, Retail-Flooring, and Steel Manufacturing segments, which decreased by approximately $20.0 million in the aggregate. Operating income increased approximately 5.6% to approximately $2.9 million for the six months ended March 31, 2025, compared with operating income of approximately $2.7 million in the prior year period. The increase in operating income is primarily attributable to lower sales and marketing expenses in the Retail-Flooring segment and lower general and administrative expenses in the Corporate and Other segment. For the six months ended March 31, 2025, income before provision for income taxes was approximately $21.7 million, compared with a loss before benefit from income taxes of approximately $5.4 million. The increase in income before provision for income taxes is primarily attributable to the $22.8 million gain on the modification of the Flooring Liquidators seller note and the $2.8 million gain on the settlement of the earnout liability related to the Precision Metal Works, Inc. ("PMW") acquisition and a $0.7 million gain on the settlement of the PMW seller notes, both in the first quarter of fiscal year 2025. Adjusted EBITDA¹ for the six months ended March 31, 2025 was approximately $12.2 million, a decrease of approximately $1.0 million, or 7.3%, compared to the prior year period Adjusted EBITDA of $13.2 million. The decrease in adjusted EBITDA is primarily due to a decrease in gross profit. Six Months FY 2025 Segment Results (in thousands) For the six months ended March 31, 2025 2024 % Change Revenue Retail - Entertainment $ 39,740 $ 37,428 6.2% Retail - Flooring 59,146 66,351 -10.9% Flooring Manufacturing 55,815 63,425 -12.0% Steel Manufacturing 63,757 68,841 -7.4% Corporate & Other 63 174 -63.8% Total Revenue $ 218,521 $ 236,219 -7.5% For the six months ended March 31, 2025 2024 % Change Operating Income (loss) Retail - Entertainment $ 5,905 $ 4,973 18.7% Retail - Flooring (4,914) (2,935) -67.4% Flooring Manufacturing 1,401 2,923 -52.1% Steel Manufacturing 3,362 1,855 81.2% Corporate & Other (2,900) (4,113) 29.5% Total Operating Income $ 2,854 $ 2,703 5.6% For the six months ended March 31, 2025 2024 % Change Adjusted EBITDA¹ Retail - Entertainment $ 6,565 $ 5,867 11.9% Retail - Flooring (2,749) (546) N/A Flooring Manufacturing 3,023 4,774 -36.7% Steel Manufacturing 6,543 5,133 27.5% Corporate & Other (1,191) (2,075) 42.6% Total Adjusted EBITDA¹ $ 12,191 $ 13,153 -7.3% Adjusted EBITDA¹ as a percentage of revenue Retail - Entertainment 16.5% 15.7% Retail - Flooring -4.6% -0.8% Flooring Manufacturing 5.4% 7.5% Steel Manufacturing 10.3% 7.5% Corporate & Other N/A N/A Total Adjusted EBITDA¹ 5.6% 5.6% as a percentage of revenue Retail - Entertainment The Retail-Entertainment segment revenue for the six months ended March 31, 2025 was approximately $39.7 million, an increase of approximately $2.3 million, or 6.2%, compared to prior year period revenue of approximately $37.4 million. Revenue increased primarily due to changes in product mix toward new products, which generally have higher selling prices. Gross margin increased to 57.8% for the six months ended March 31, 2025, compared to

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