LiveDeal - Continued Controversy Muddies Valuation; Initiate With 'Sell' And $1.20 PT
L&F Capital Management
L&F Capital Management
Mon, Nov. 7, 10:09 AM
- Live Ventures (NASDAQ:LIVE) is up 5.3% after news that it's acquired buy/sell/trade entertainment retailer Vintage Stock for $60M.
- Vintage Stock incorporates sub-brands VStock, Movie Trading Company and EntertainMart, and operates 57 stores across 10 states. Its 900 employees will bring total Live Ventures employees to about 1,200.
- The deal's in cash and debt, and is financed by Texas Capital Bank and Capitala Group.
- Management sees Live Ventures' assets climbing to over $100M, annual sales to $160M and net income up to 20M ($1.21/share); Vintage Stock generated about $13.5M in pretax income in its most recent audited report.
Dec. 8, 2015, 10:07 AM
- Live Ventures (NASDAQ:LIVE) is up strong, +4.3%, after buying out the rest of its manufacturing subsidiary Marquis Industries.
- The deal involves a 20% stake that had been owned by Marquis management and shareholders.
- The company says taking full ownership should allow usage of $10M in net operating loss carry-forwards in coming years, meaning millions in cash savings.
- Marquis is a specialty high-performance yarns manufacturer and top-10 high-end residential carpet maker.
- Shares of Live Ventures are up 53.1% in three days.
Oct. 8, 2015, 10:03 AM
- LiveDeal (LIVE +1.7%) has wrapped up a corporate name change, to Live Ventures Inc.
- It'll continue to trade as LIVE under a new CUSIP number.
- The company had announced its change early this summer as part of a strategy to pursue revenue-positive companies for acquisition, primarily through debt financing rather than equity. It got $7M in initial bridge financing from an entity controlled by its CEO toward that purpose.
Sep. 22, 2015, 10:16 AM
- LiveDeal (LIVE +1.7%) says it's completed the audit of its previously announced deal for Marquis Industries, add added nearly $37M in assets and $60M in revenue.
- Marquis, a Georgia carpet-yarn maker, netted almost $9M in gross profit for the six months ended June 27 and will make LiveDeal immediately profitable, the company has said.
- The acquisition, wrapped up through a new Live Ventures subsidiary, is the first in a planned range of revenue-positive acquisitions.
- Previously: LiveDeal buys Georgia yarn maker Marquis (Jul. 15 2015)
- Previously: LiveDeal up 3.6%; gets $7M in bridge financing for acquisition (Jul. 09 2015)
Jul. 15, 2015, 8:53 AM
- LiveDeal (NASDAQ:LIVE) has closed a deal to acquire Marquis Industries, a Georgia-based carpet yarn maker with more than $30M in assets.
- It's the first of a planned range of revenue-positive acquisitions, and the move will make LiveDeal immediately profitable, management says.
- It was financed using $6M in bridge financing from Isaac Capital Fund I and $20M from BofA Merrill Lynch. The deal means LiveDeal will generate close to $100M in annual consolidated revenue and add about $8M in EBITDA, says CEO Jon Isaac.
- Shares were inactive premarket.
Jul. 9, 2015, 12:17 PM
- LiveDeal (NASDAQ:LIVE) is up 3.6% as it confirms that Isaac Capital Group committed $7M of bridge financing for it to pursue acquisitions.
- The money is set aside for a first acquisition in a new LiveDeal/Live Ventures strategy to pursue revenue-positive companies, and accordingly was non-dilutive to LiveDeal shareholders. The company says it expects to announce the closing of the deal in the near term.
- Isaac Capital Group is controlled by LiveDeal CEO Jon Isaac. "Isaac Capital Group's commitment helped LiveDeal acquire a revenue-generating and profitable company, and for this we are extremely excited," he says.
Jun. 23, 2014, 1:16 PM
- Sources tell dealReporter OpenTable (OPEN +0.1%) talked with bidders other than Priceline (PCLN -0.1%) before accepting the online travel giant's $2.6B bid.
- Though a higher offer is seen as unlikely, one source thinks Yahoo (set to receive an Alibaba IPO windfall) could make a bid. OpenTable is currently 1.9% above Priceline's $103/share offer price.
- Yelp (YELP +3.6%), which blasted off after Priceline/OpenTable was announced, is rallying again. Volatile restaurant deals microcap LiveDeal (LIVE +9.3%) is also up strongly.
- Previous: Street commentary on Priceline/OpenTable