Achieved $152.8 Million in Net Sales,
Representing 23.5% Year-Over-Year Growth Relative to Combined
Proforma Sales Results for Q1 2021
Reaffirms FY 2022 Guidance for Revenue Growth,
Gross Margin and Adjusted EBITDA Margin
1847 Goedeker Inc. (NYSE American: GOED) ("Goedeker" or the
"Company"), a content driven and technology enabled shopping
destination for appliances, furniture and home goods in the U.S.
household appliances market, today reported financial results for
the period ended March 31, 2022. The Company’s 10-Q and additional
information can be accessed at https://investor.goedekers.com/.
Financial Highlights
FIRST QUARTER 2022
- Net product sales for the quarter were $152.8 million.
- Gross profit for the quarter was $35.9 million (23.5%
margin).
- Net income for the quarter was $5.9 million, or $0.06 per
diluted common share.
- Adjusted EBITDA for the quarter was $13.5 million (9%
margin).
Business and Strategy Highlights
- Secured affordable, non-dilutive capital to support our key
strategic and corporate initiatives through a $140 million credit
agreement with Bank of America.
- Finalized a new name, logo and brand ethos that will be
announced in the coming weeks.
- Made meaningful progress to build out the Company’s B2B
solutions offering, adding contracts with new developers.
- Added top tier talent with significant experience in marketing,
branding and human resources to build out our management team.
Albert Fouerti, Chief Executive Officer and Director,
commented:
“We established strong financial momentum in the first quarter,
with our net sales of $152.8 million growing 23.5% relative to
first quarter 2021 combined proforma net sales. We reaffirm our
previously articulated guidance of expected high teens to low 20s
net sales growth relative to combined proforma net sales for 2021,
with gross margins and adjusted EBITDA margins relatively flat to
our combined proforma 2021 results. We are proud of the progress we
are making on key initiatives aimed to help strengthen our
underlying business for the long-term. Over the past quarter, we
continued to lay the building blocks of growth by finalizing our
rebrand process, growing the B2B pipeline and improving our capital
position due to our recently announced credit agreement with Bank
of America. We believe that 2022 should be a transformative year on
the road to our goal of becoming a company with a billion dollars
in revenue over the next few years.”
Guidance
The Company reaffirms the previously articulated full-year
guidance, which includes high teens to low 20s net sales growth for
fiscal year 2022 relative to the Company’s combined proforma net
sales for fiscal year 2021. The Company continues to expect its
gross margins and adjusted EBITDA margins to be relatively flat to
2021 combined proforma results, which were 23.3% and 9.0%,
respectively. The Company will continue to assess the sustained
supply chain disruptions, significant inflation and geopolitical
uncertainty, and will refine the outlook over the course of the
year if these macroeconomic headwinds ease.
Investor Conference Call
The Company will host an investor conference call at 8:00 a.m.
ET today to review its results. The phone number for the investor
conference call is 1-844-881-0136 (toll-free) or 1-412-902-6507
(international); please ask to join the Goedeker Q1 2022 Earnings
Call. This call and all supplemental information can be accessed on
Goedeker’s investor relations site at
https://investor.goedekers.com.
About Goedeker
Goedeker is a content-driven and technology-enabled shopping
destination for appliances, furniture and home goods. Since its
acquisition of Appliances Connection, Goedeker has evolved into a
growth-oriented ecommerce platform with a distinct offering of
core, premium, luxury and private label brands that can be accessed
through a convenient point-and-click experience. The Company's
priorities include offering an expansive selection, high-touch
product expertise and reliable shipping from its expanding,
nationwide fulfillment network. 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. You should not
place undue reliance on forward-looking statements because they
involve known and unknown risks, uncertainties and other factors,
which are, in some cases, beyond the Company’s control and which
could materially affect results. Factors that may cause actual
results to differ materially from current expectations include,
among other things, those described more fully in the section
titled "Risk Factors" of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2021, filed with the Securities and
Exchange Commission. 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's audited consolidated financial statements and
unaudited condensed consolidated financial statements are prepared
in accordance with accounting principles generally accepted in the
United States ("GAAP"). The Company also provides financial
information in this release that was not prepared in accordance
with GAAP and should not be considered as an alternative to the
information prepared in accordance with GAAP. 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 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 income
before income taxes, depreciation and amortization, financing
costs, interest expense, sales tax accrual and one-time
non-operational events. Adjusted EBITDA is not calculated in
accordance with GAAP and should not be considered an alternative to
any financial measure that was calculated under 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
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 income for the
Company is provided below (in millions):
Three Months Ended
31-Mar-22
NET INCOME
$
5.9
ADJUSTMENTS
Interest Expense
0.9
Depreciation and Amortization
2.7
Income Taxes
3.4
EBITDA
12.9
Severance
0.2
Management Fees
0.1
Other one-time adjustments*
0.3
ADJUSTED EBITDA
$
13.5
*One-time adjustments mainly include costs
not related to our on-going operating results
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220516005348/en/
Goedeker Investor Relations Greg Marose / Ashley Areopagita
IR@goedekers.com
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