Shares of micro-cap holding company Live Ventures Incorporated (NASDAQ:LIVE) opened a whopping 80% higher on Thursday after management reported its preliminary full-year results. The firm announced that it completed the acquisition of a 57-store retail chain and witnessed year-over-year revenue growth of 92%.
Total revenues at Live Ventures came in at $152.0 million, a record high. The company generated about $9.5 million in cash flow from operations.
“Our record-breaking revenues are a direct result of successful execution of our business model, part of which included the successful completion of the Vintage Stock acquisition,” said Jon Isaac, CEO of Live Ventures.
Vintage Stock operates nostalgia-heavy movie, music, and video game stores throughout the central United States. Live Ventures has yet to finalize its purchase price allocation related to the acquisition, so management is opting to disclose its earnings per share results at a later date.
After closing at just $13.20 per share on Wednesday, LIVE opened Thursday at a staggering $23.73. The stock would quick move higher to touch an intraday trading high of $26.50 per share. By mid-morning hours, shares were down to around $21.22.
Historically, Live Ventures as operated as an online marketplace, and shares reached a reverse-split adjusted high of about $1,100 in early 2004. After years of stagnation, the company shifted its business model in 2015 to focus on “acquiring profitable companies in various industries that have demonstrated a strong history of earnings power.”
Interestingly enough, however, today’s results may not be particularly strong. Live Ventures’ full-year totals imply Q4 revenues of $40.1 million, which is down from the $41.3 million reported in Q3. The company’s full-year cash flow implies Q4 totals of just $700,000, as it already reported cash flow of $8.8 million in the first nine months.
Still, investors seem to be excited about the wording of Live Ventures’ press release. The firm noted that it hired a new accounting firm, which management suggested “found numerous things for us that you will see in the 10-K.”
Nevertheless, we are witnessing a massive share price explosion for a company that does business in the carpet manufacturing and vintage retail industries, so take that as you will.
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