LAS VEGAS, Nov. 7, 2016 /PRNewswire/ -- Live Ventures
Incorporated (Nasdaq: LIVE) ("Live Ventures" or the "Company"), a
diversified holding company, today announced it has acquired 100%
of the outstanding stock of entertainment retailer, Vintage Stock,
Inc., in a cash and debt transaction valued at approximately
$60M. The acquisition was financed by
Texas Capital Bank (NASDAQ: TCBI) and Capitala Group (NASDAQ:
CPTA). Live Ventures did not issue any stock or convertible
securities in connection with this transaction. As a result of this
highly accretive acquisition, management expects Live Ventures'
assets to increase to over $100M,
annual sales to increase to $160M and
net income to increase to $20M
($1.21 per share).
Vintage Stock, along with its sub-brands, VStock, Movie Trading
Company, and EntertainMart, is a Joplin,
Missouri-based retail chain that buys, sells and trades
entertainment products. Its product offerings include movies,
music, video games for multiple consoles, as well as books, trading
and game cards and collectables, including comic books, movie
memorabilia, toys and novelties. The company operates 57 stores
across 10 states and employs about 900 people. The acquisition
increases Live Ventures' total employee count to about 1,200.
"Vintage Stock has proven quarter after quarter that it matches
precisely our criteria for acquisition: very consistent and stable
earnings over the past several years, an easy to understand
business model, and a stellar management team. As a result of this
highly accretive acquisition, we expect our financials to continue
to improve significantly. This acquisition marks $100M in deals since we changed LiveDeal into a
diversified holding company just last year," said Jon Isaac, CEO of Live Ventures
Incorporated. "Vintage Stock's CEO, Rodney Spriggs, is truly a one-of-a-kind
executive who has achieved tremendous success creating a unique and
highly-profitable business model and expanding it systematically
since the company's humble beginnings in 1980 as a used bookstore.
We are proud to welcome Vintage Stock and its approximately 900
employees to the Live Ventures family."
In its most recent audited report, Vintage Stock generated
approximately $13.5M (audited) in
pre-tax income, while achieving up to an 80 percent gross profit
margin on some of its products. Management expects 2017 to be even
better as a result of new store openings. The current management
team, led by Mr. Spriggs, will remain in place.
"Joining the Live Ventures family is a tremendous opportunity to
continue to expand on a business model that has brought us
tremendous success thus far, while enjoying the additional support
of a larger conglomerate to support our growth," said Mr.
Spriggs. "We look forward to our continued mutual
success."
The acquisition was financed by Capitala Group, a Charlotte-based provider of capital to lower
and traditional middle-market companies, and Texas Capital
Bancshares, Inc. (Nasdaq: TCBI), the parent company of Texas
Capital Bank, a $2.6 Billion bank
recognized as one of Forbes Best Banks in
America.
Keith Cargill, President and CEO
of Texas Capital Bank said: "We are excited about the future of our
client, Live Ventures, and the opportunity to serve it with our
extraordinary people, culture and financial strength."
"Through Capitala Group's unique structuring capabilities, we
are able to offer creative financing solutions to our partners,"
said Joe Alala, Chairman and CEO of
Capitala Group. "We are pleased to have led the financing for
this transaction, and we're excited to have Live Ventures as a new
partner."
About Live Ventures Incorporated
Live Ventures
Incorporated is a diversified holding company with several wholly
owned subsidiaries and a strategic focus on acquiring profitable
companies that have demonstrated a strong history of earnings
power. Live Ventures Incorporated provides, among other
businesses, marketing solutions that boost customer awareness and
merchant visibility on the Internet. The Company operates a deal
engine, which is a service that connects merchants and consumers
via an innovative platform that uses geo-location, enabling
businesses to communicate real-time and instant offers to nearby
consumers. In addition, it maintains, through its subsidiary,
ModernEveryday, an online consumer products retailer and, through
its subsidiary, Marquis Industries, a specialty, high-performance
yarns manufacturer, hard-surfaces re-seller, which is a top-10
high-end residential carpet manufacturer in the United
States. Marquis Industries, through its A-O Division, utilizes
its state-of-the-art yarn extrusion capacity to market monofilament
textured yarn products to the artificial turf industry.
Marquis is the only manufacturer in the world that can produce
certain types of yarn prized by the industry.
About Vintage Stock, Inc.
Vintage Stock, Inc. is an
award-winning entertainment retailer celebrating its
36th year in operation. The retail chain has grown from
5 stores to 57 in 10 states in the Midwest region, including the
Kansas City metro, Wichita metro, Tulsa metro, Oklahoma City metro, Dallas metro, St
Louis metro & the cities of Springfield and Joplin Missouri. With
many stores measuring 20,000 to 40,000 square feet featuring
product including movies, classic and new video games, music,
collectible comics and toys, and the ability to special order and
ship product worldwide to the customer's doorstep, Vintage Stock is
America's largest entertainment superstore chain. Vintage
Stock is headquartered in Joplin
with offices in Dallas.
About Texas Capital Bancshares, Inc.
Texas Capital
Bancshares, Inc. (Nasdaq: TCBI), a member of the Russell 2000®
Index and the S&P SmallCap 600®, is the parent company of Texas
Capital Bank, a commercial bank that delivers highly personalized
financial services to businesses and entrepreneurs. Headquartered
in Dallas, the bank has
full-service locations in Austin,
Dallas, Fort Worth, Houston and San
Antonio.
About Capitala Group
Capitala Group is a leading
provider of capital to lower and traditional middle market
companies, through its family of credit focused funds. Since 1998,
Capitala Group's managed funds have participated in over 133
transactions, representing over $1.2
billion of investments in a variety of industries throughout
North America. Capitala Group
manages both public capital (Capitala Finance Corp.) (Nasdaq: CPTA)
and private capital (Capitala Private Credit Fund V, L.P. and
CapitalSouth SBIC Fund IV, L.P.) for institutional and individual
investors, and seeks to partner with strong management teams to
create value and serve as long term partners. For more
information, please visit www.CapitalaGroup.com.
Forward-Looking and Cautionary Statements
This press
release may contain "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of
1995. In accordance with the safe harbor provisions of
this Act, statements contained herein that look forward in time
that include everything other than historical information, involve
risks and uncertainties that may affect the Company's actual
results. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar
statements. Live Ventures Incorporated may also make written
or oral forward-looking statements in its periodic reports to the
U.S. Securities and Exchange Commission on Forms 10-K, 10-Q and
8-K, in its annual report to stockholders, in press releases and
other written materials and in oral statements made by its
officers, directors or employees to third parties. There can be no
assurance that such statements will prove to be accurate and there
are a number of important factors that could cause actual results
to differ materially from those expressed in any forward-looking
statements made by the Company, including, but not limited
to, plans and objectives of management for future operations
or products, the market acceptance or future success of our
products, and our future financial performance. The
Company cautions that these forward-looking statements are further
qualified by other factors including, but not limited to, those set
forth in the Company's Form 10-K for the fiscal year ended
September 30, 2016, most recent Form
10-Q, and other filings with the U S. Securities and Exchange
Commission (available at http://www.sec.gov). The Company
undertakes no obligation to publicly update or revise any
statements in this release, whether as a result of new information,
future events, or otherwise.
For further information contact:
Live Ventures Incorporated
Tim Matula, investor relations
425-836-9035
press@livedeal.com
http://live-ventures.com
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SOURCE Live Ventures Incorporated