- Combined revenue up 84% year-over-year
- Combined proforma net income $13M in Q1
- Q1 combined adjusted EBITDA of $14.7M surpassed full-year
2020 adjusted EBITDA of $14.4M
1847 Goedeker Inc. (NYSE American: GOED) (“Goedekers” or the
“Company”), a one-stop e-commerce destination for appliances and
furniture, and Appliances Connection, a leading appliance retailer
under a definitive agreement to be acquired by the Company, today
reported financial results for the first quarter ended March 31,
2021.
Key Highlights:
- Appliances Connection acquisition, announced in Q4 2020 and
expected to close in Q2 2021.
- Combined revenue up 84% year-over-year to $123.0 million in the
first quarter of 2021, driven by continued strong growth in site
sessions, up 61% to 11.1 million, and written orders, up 105% to
$199.3 million.
- Gross profit was $32.2 million for the combined companies, or
26.2% of total first quarter 2021 net revenue, up from 18.9% in the
first quarter of 2020.
- Combined adjusted EBITDA of $14.7 million in the first quarter
of 2021 surpassed the proforma adjusted EBITDA of $14.3 million
reported by the combined companies for the full year of 2020.
- As of March 31, 2021, the combined companies had $40.1 million
of cash on a proforma basis and $7.1 million in restricted
cash.
“On a combined basis we generated exceptional performance in the
first quarter with record sales and record EBITDA,” stated Doug
Moore, CEO of 1847 Goedeker. “Our first quarter adjusted EBITDA
surpassed the entire year’s performance for 2020, with similar
strong improvements to our combined net income. We remain on track
to complete our acquisition of Appliances Connection in the near
term, creating what we believe will be the largest pure-play online
retailer of household appliances in the US.”
“A better flow of merchandise in the quarter was combined with a
shipped product mix that helped grow product margins to 19.3% at
Goedekers and 27% at Appliances Connection,” commented Albert
Fouerti, President of Appliances Connection.
Moore continued, “Our order fulfillment abilities are slowly
normalizing but still at only 61% versus a historical rate of more
than 80%. As manufacturers return to prior production levels and
with the opening of our new 86,000 square foot St. Louis
fulfillment center, which triples our Midwest capacity, we believe
that Goedekers will quickly return to its normal shipping
trends.”
Goedekers plans to host a conference call to discuss its first
quarter financial results and outlook for 2021 after completing its
acquisition of Appliances Connection. The Company will issue a
press release with the conference call details after the timing is
confirmed.
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). Goedeker’s 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.
About Appliances Connection
Founded in 2000, Appliances Connection is one of the leading
retailers of household appliances with a 200,000 square foot
warehouse in Hamilton, NJ and a 23,000 square foot showroom in
Brooklyn, New York. Appliances Connection carries many household
name brands, including Bosch, Cafe, Frigidaire Pro, Whirlpool, LG,
and Samsung, and also carries many major luxury appliance brands
such as Miele, Thermador, La Cornue, Dacor, Ilve, Wolf, Jenn-Air,
Viking among others. Appliance Connection provides appliance
installation services and appliance removal services. In addition
to selling appliances, it also sells furniture, fitness equipment,
plumbing fixtures, televisions, outdoor appliances, and patio
furniture, as well as commercial appliances for builder and
business clients.
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.
Non-GAAP Financial Measures
The Company believes the non-GAAP financial measures presented
in this press release will help investors understand the financial
condition and operating results of the combined company and assess
the Company’s future prospects. The Company believes these non-GAAP
financial measures, each of which is discussed in greater detail
below, are important supplemental measures because they exclude
unusual or non-recurring items as well as non-cash items that are
unrelated to or may not be indicative of our ongoing operating
results. Further, when read in conjunction with GAAP results, these
non-GAAP financial measures provide a baseline for analyzing trends
in our underlying businesses and can be used by management as a
tool to help make financial, operational and planning decisions.
Finally, these measures are often used by analysts and other
interested parties to evaluate companies in our industry by
providing more comparable measures that are less affected by
factors such as capital structure.
The Company recognizes that these non-GAAP financial measures
have limitations, including that they may be calculated differently
by other companies or may be used under different circumstances or
for different purposes, thereby affecting their comparability from
company to company. In order to compensate for these and the other
limitations discussed below, management does not consider these
measures in isolation from or as alternatives to the comparable
financial measures determined in accordance with GAAP. Readers
should review the reconciliations below and should not rely on any
single financial measure to evaluate our business.
The non-GAAP financial measure used in this press release is
Adjusted EBITDA. The Company defines Adjusted EBITDA as net loss
before income taxes, depreciation and amortization, financing
costs, interest expense, sales tax accrual and one-time
non-operational events. Adjusted EBITDA is not measures calculated
in accordance with GAAP, and they should not be considered an
alternative to any financial measures that were calculated under
U.S. GAAP. Adjusted EBITDA is used to facilitate a comparison of
the ordinary, ongoing and customary course of the operations of the
combined company on a consistent basis from period to period and
provide an additional understanding of factors and trends affecting
the business of the combined company. Adjusted EBITDA may not be
comparable to similarly titled non-GAAP measures used by other
companies as other companies may have calculated the measures
differently.
The reconciliation of Adjusted EBITDA to net loss for the
combined company (on a pro forma basis) is provided below:
Three Months Ended
March 31,
2021
Year Ended
December 31, 2020
Net income (loss)
$
12,983,184
$
(6,355,347
)
Income tax expense
-
698,303
Depreciation and amortization
275,427
1,332,485
Financing costs
-
762,911
Interest expense
1,395,836
5,424,521
Sales tax accrual
-
7,700,378
One-time non-operational events:
Loss on extinguishment of debt
-
1,756,095
Write-off of acquisition receivable
-
809,000
Adjustment in value of contingency
-
138,922
Change on fair value of warrant
liability
-
2,127,656
Adjusted EBITDA
$
14,654,447
$
14,394,924
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210513005648/en/
Dave Gentry, CEO RedChip Companies Office: 1.800.RED.CHIP
(733.2447) Cell: 407.491.4498 dave@redchip.com
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