1847 Goedeker Announces Fiscal Year 2020 Results with Written Orders Up 99% to $123.2M on 57% YoY Increase in Site Sessions
March 29 2021 - 7:00AM
Business Wire
- Cash flow from operations increased to $5.4M vs $(1.7M) in
2019
- FY20 revenue up 15.8% year-over-year to $55.1M
- Company to host conference call at 4:15 p.m. ET
today
1847 Goedeker Inc. (NYSE American: GOED) (“Goedekers” or the
“Company”), a one-stop e-commerce destination for appliances and
furniture, today reported financial results for its fiscal year
ended December 31, 2020.
Key Highlights:
- Site sessions increased 57% to 9.9 million in 2020, up from 6.3
million in 2019.
- Written orders totaled $123.2 million in 2020, up 99% from
$61.8 million in 2019.
- Shipped orders increased to $55.1 million in 2020, up 15.8%
from $47.6 million in 2019. Pandemic-driven industry-wide supply
interruptions and shortages significantly reduced product available
to ship; had the Company shipped at its 2018-2019 rate, total
shipped orders, or revenue, would have increased by $42 million to
$97.3 million for the year, up 104% compared to 2019 revenue.
- The industry-wide lack of supply significantly impacted COGS
and certain variable and fixed operating expenses which were higher
relative to revenue; manufacturers anticipate production will
return to normal levels by the end of Q2 2021.
- Completed multiple strategic investments to prepare for
scalable and accelerated growth and a return to pre-Covid levels of
product availability, with investments in logistics, electronic
data interchange, and customer service and sales staffing
increasing throughout the year.
- Tripling shipping capacity with new fulfillment center lease
signed in January 2021; expect to begin order fulfillment
operations at new facility in Q2.
- New fulfillment center includes on-trend showroom and office
space for corporate operations; the showroom is expected to open in
the summer of 2021.
- Appliances Connection acquisition, announced in Q4 2020 and on
pace to close in Q2 2021, expected to create one of the largest
independent online retailers of household appliances in the
U.S.
- Generated record-breaking Black Friday / Cyber Monday results,
alongside Appliances Connection, and both companies continued
strong growth in site sessions and written orders for December 2020
and January and February 2021.
“2020 was a transformational year for Goedekers,” stated Doug
Moore, CEO of 1847 Goedeker. “Our successful August 2020 IPO on the
NYSE American set the stage for our pending acquisition of
Appliances Connection, which remains on track to close in the
coming months. Our IPO also strengthened our financial position,
enabling increased marketing spend that led to record orders that
will increasingly convert to revenues as industry supply chain
issues resolve.”
Moore continued, “At the same time industry supply improves, we
are making strategic investments to prepare for the return to
normal levels of product availability. During the year, and
particularly in the fourth quarter, we continued to invest in our
infrastructure with significant investments in logistics,
electronic data interchange, customer service staff, and phone
sales associates. These investments have continued into 2021 with a
new fulfillment center that will triple our shipping capacity and
is expected to begin operations in the second quarter.
“We are pleased to report continued growth of site sessions
throughout 2020 which drove a near doubling of written orders and
ultimately paved the way for a significant improvement to our cash
flow from operations. As manufacturers return to prior production
levels, we believe that Goedekers will quickly return to its normal
shipping trends. Our upcoming acquisition of Appliances Connection
will strengthen our ability to more efficiently meet growing
consumer demand, with a near term look beyond supply constraints
creating a clear path to profitability.”
Bob Barry, CFO of Goedekers, added, “We are restating our 2019
annual financial statements to reflect an accrual for sales taxes
that might be assessed by the states where we sell. Like many other
companies that sell their products almost exclusively online, we
concluded that we should accrue a liability for potential sales
taxes that might be payable to the states in which we sell our
products as a result of the US Supreme Court’s 2018 decision in
South Dakota v. Wayfair, Inc., which provided that states may
require remote sellers to collect sales tax under certain
circumstances. We will also restate our 2019 and 2020 second and
third quarter results to reflect the accruals. The changes result
in an accrued non-cash charge of $2.9 million in both 2019 and
2020.”
Fiscal Year 2020 Financial Highlights:
- Cash flow from operations improved $7.1 million to $5.4 million
in the year ended December 31, 2020, up from ($1.7 million) in the
prior year period.
- As of December 31, 2020, the Company had $9.9 million of cash,
including unrestricted of $0.9 million and restricted of $9.0
million.
- Net revenue increased 15.8% to $55.1 million in 2020, up from
$47.6 million in 2019, which included $12.9 million for our
predecessor from January 1, 2019 to April 5, 2019 and $34.7 million
for our successor from April 6, 2019 to December 31, 2019. Growth
was primarily driven by higher demand resulting from increased
advertising spend.
- Gross profit was $7.3 million, or 13.2% of total net revenue,
compared to $8.0 million in 2019, which included $1.9 million for
our predecessor from January 1, 2019 to April 5, 2019 and $6.1
million for our successor from April 6, 2019 to December 31, 2019.
Gross profit was impacted on a year-over-year basis by supply chain
issues related to Covid-19.
- Operational results in 2020 show a loss of $14.4 million.
Adjusted for approximately $4 million in non-recurring SG&A,
pre-Covid order fulfillment rates and gross profit margins,
operating loss would have been $1.6 million.
Albert Fouerti, President of Appliances Connection, commented,
“We continue to share parallel success in site sessions and order
performance and remain excited for the expected rapid growth of our
combined companies.”
Moore continued, “We are executing on a proven DTC model of
current investment driving scalable growth, including $600k
invested toward our Appliances Connection acquisition in the fourth
quarter alone. We have demonstrated that consumers like to purchase
big ticket items online, and we are building the infrastructure to
support the growth that we believe will accelerate as manufacturers
produce enough product to meet demand. We are still in an early
stage of capitalizing on a $20 billion industry opportunity and are
relentlessly executing on our vision of growing Goedekers into a
billion-dollar revenue company as we change the way Americans shop
for appliances.”
Webcast and Conference Call
The Company will host a conference call and webcast to discuss
its fourth quarter and fiscal year 2020 financial results today at
4:15 p.m. ET. Shareholders and other interested parties may
participate in the conference call by dialing 1-877-407-9039
(U.S. Toll-Free) or 1-201-689-8470 (International) a few
minutes before the 4:15 p.m. ET start time. An audio-only webcast
is also available by visiting:
http://public.viavid.com/index.php?id=144133
For interested individuals unable to join the conference call, a
dial-in replay of the call will be available until April 12, 2021
and can be accessed by dialing +1-844-512-2921 (U.S. Toll Free) or
+1-412-317-6671 (International) and entering replay pin number:
13718138.
About 1847 Goedeker Inc.
1847 Goedeker Inc. is an industry leading e-commerce destination
for appliances, furniture, and home goods. Since its founding in
1951, Goedekers has transformed from a local brick and mortar
operation serving the St. Louis metro area to a respected
nationwide omnichannel retailer that offers one-stop shopping for
national and global brands. While the Company maintains its St.
Louis showroom, over 95% of sales are placed through its website
(www.Goedekers.com). Goedekers provides visitors an easy to
navigate shopping experience and offers more than 141,000 items
organized by category and product features. Learn more at
www.Goedekers.com.
Forward Looking Statements
This press release contains “forward-looking statements” that
are subject to substantial risks and uncertainties. All statements,
other than statements of historical fact, contained in this press
release are forward-looking statements. Forward-looking statements
contained in this press release may be identified by the use of
words such as “anticipate,” “believe,” “contemplate,” “could,”
“estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,”
“potential,” “predict,” “project,” “target,” “aim,” “should,”
"will” “would,” or the negative of these words or other similar
expressions, although not all forward-looking statements contain
these words. Forward-looking statements are based on the Company’s
current expectations and are subject to inherent uncertainties,
risks and assumptions that are difficult to predict. Further,
certain forward-looking statements are based on assumptions as to
future events that may not prove to be accurate. These and other
risks and uncertainties are described more fully in the section
titled “Risk Factors” in the final prospectus related to the public
offering filed with the Securities and Exchange Commission and
other reports filed with the Securities and Exchange Commission
thereafter. Forward-looking statements contained in this
announcement are made as of this date, and the Company undertakes
no duty to update such information except as required under
applicable law.
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Dave Gentry, CEO RedChip Companies Office: 1.800.RED.CHIP
(733.2447) Cell: 407.491.4498 dave@redchip.com
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