BALLWIN, Mon .– (BUSINESS WIRE) – 1847 Goedeker Inc. (NYSE American: GOED) (“Goedekers” or the “Company”), a one-stop shop for appliances and furniture e-commerce destination, and Appliances Connection, a leading appliance retailer, under a definitive agreement with Acquired by the company today reported financial results for the first quarter ended March 31, 2021.
Key highlights:
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Acquisition of Appliances Connection, announced in Q4 2020 and expected to be completed in Q2 2021.
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Combined revenue increased 84% year over year to $ 123.0 million in the first quarter of 2021. This is due to the continued strong growth in site meetings from 61% to $ 11.1 million and written orders up 105% to $ 199.3 million.
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Gross income for the combined companies was $ 32.2 million, or 26.2% of total net sales for the first quarter of 2021, up from 18.9% in the first quarter of 2020.
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Combined adjusted EBITDA of $ 14.7 million for the first quarter of 2021 exceeded the pro forma adjusted EBITDA of $ 14.3 million reported by the combined companies for full year 2020.
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As of March 31, 2021, the combined companies had cash and cash equivalents of $ 40.1 million and restricted cash of $ 7.1 million on a pro forma basis.
“Overall, we achieved an exceptional performance in the first quarter with record sales and record EBITDA,” said Doug Moore, CEO of 1847 Goedeker. “Our adjusted EBITDA for the first quarter outperformed full year 2020 performance with similarly strong improvements in our combined net income. We remain on track to complete the Appliances Connection acquisition in the near future. We believe this will be the largest online all-online home appliance retailer in the United States. ”
“A better flow of goods in the quarter was combined with a mix of shipped products that helped drive product margins to 19.3% for Goedekers and 27% for Appliances Connection,” said Albert Fouerti, president of Appliances Connection.
Moore continued, “Our order fulfillment capabilities are slowly returning to normal, but they are still only 61%, down from a historical rate of over 80%. As manufacturers return to previous levels of production, and with the opening of our new 86,000 square foot fulfillment center in St. Louis, which triples our capacity in the Midwest, we believe Goedekers will quickly return to its normal shipping trends. ”
Goedekers plans to hold a conference call to discuss financial results and outlook for the first quarter of 2021 after the completion of the Appliances Connection acquisition. The company will issue a press release detailing the conference call after the timing is confirmed.
Around 1847 Goedeker Inc.
1847 Goedeker Inc. is an industry leading e-commerce destination for home appliances, furniture, and housewares. Since its founding in 1951, Goedekers has grown from a local brick and mortar business in the greater St. Louis area to a respected nationwide omnichannel retailer that purchases national and global brands from a single source. While the company maintains its showroom in St. Louis, over 95% of sales are generated through its website (www.Goedekers.com). Goedeker’s offers visitors an easy-to-navigate shopping experience and offers more than 141,000 items sorted by categories and product features. Learn more at www.Goedekers.com.
Information about the device connection
Founded in 2000, Appliances Connection is a leading home appliance retailer with a 200,000 square foot warehouse in Hamilton, New Jersey and a 23,000 square foot showroom in Brooklyn, New York. Appliances Connection carries many well-known brands including Bosch, Cafe, Frigidaire Pro, Whirlpool, LG and Samsung, as well as many large luxury appliance brands such as Miele, Thermador, La Cornue, Dacor, Ilve, Wolf, Jenn-Air, Wikinger among others. Appliance Connection provides appliance installation services and appliance removal services. In addition to the sale of equipment, furniture, fitness equipment, sanitary fittings, televisions, outdoor equipment and garden furniture as well as commercial equipment for builders and business customers are also sold.
Forward-Looking Statements
This press release contains “forward-looking statements” that are subject to significant risks and uncertainties. All statements in this press release, other than historical facts, are forward-looking statements. Forward-looking statements in this press release may be identified by the use of words such as “anticipate”, “believe”, “consider”, “might”, “estimate”, “expect”, “intend”, “seek”. “May”, “power”, “plan”, “potential”, “prediction”, “project”, “goal”, “aim”, “should”, “will”, “would” or the negative of these words or others 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. In addition, certain forward-looking statements are based on assumptions about future events that may prove to be incorrect. These and other risks and uncertainties will be further described in the “Risk Factors” section of the final prospectus in connection with the public offer made with the Securities and Exchange Commission and other reports filed with the Securities and Exchange Commission. The forward-looking statements contained in this announcement become effective as of that date and the company undertakes no obligation to update this information unless required by applicable law.
Non-GAAP Financial Measures
The company believes that the non-GAAP financial measures presented in this press release will help investors understand the financial condition and results of operations of the combined company and evaluate the future prospects of the company. The Company believes that these non-GAAP financial measures, which are detailed below, are important supplemental measures as they exclude unusual or one-time items, as well as non-cash items that are unrelated or may not be indicative of ours ongoing operating results. When combined with GAAP results, these non-GAAP financial measures provide a basis for analyzing trends in our underlying businesses and can be used by management as a tool to make financial, operational, and planning decisions. Finally, these metrics are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable metrics that are less influenced by factors such as capital structure.
The Company recognizes that these non-GAAP financial measures have limitations, including the fact that they may be calculated differently by other companies or used in different circumstances or for different purposes, which may affect their comparability from company to company. To offset this and the limitations discussed below, management does not view these measures in isolation from, or as an alternative to, comparable financial measures determined under GAAP. Readers should review the polls below and not rely on a single financial measure in evaluating our business.
The non-GAAP financial measure used in this press release is Adjusted EBITDA. The company defines adjusted EBITDA as the net loss before income taxes, depreciation, financing costs, interest expenses, deferred sales tax and one-time non-operating events. Adjusted EBITDA is not a GAAP measure and should not be viewed as an alternative to US GAAP financial measures. Adjusted EBITDA is used to provide a comparison of the normal, ongoing, and customary performance of the combined company from period to period on a consistent basis and to provide an additional understanding of the factors and trends affecting the combined company’s business. Adjusted EBITDA may not compare to non-GAAP measures with similar titles used by other companies because other companies may have calculated the measures differently.
The reconciliation of Adjusted EBITDA to Net Loss of the Combined Company (on a pro forma basis) is shown below:
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Three months ended
March 31,
2021 |
|
|
end of year
December 31, 2020 |
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||
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Net income (loss) |
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$ |
12,983,184 |
|
|
$ |
(6,355,347 |
) |
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Income tax expense |
|
|
– – |
|
|
|
698,303 |
|
|
Depreciation |
|
|
275.427 |
|
|
|
1,332,485 |
|
|
Financing costs |
|
|
– – |
|
|
|
762.911 |
|
|
Interest expenses |
|
|
1,395,836 |
|
|
|
5,424,521 |
|
|
Deferred sales tax |
|
|
– – |
|
|
|
7,700,378 |
|
|
One-off non-operational events: |
|
|
|
|
|
|
|
|
|
Loss in extinguishing debt |
|
|
– – |
|
|
|
1,756,095 |
|
|
Amortization of the acquisition receivable |
|
|
– – |
|
|
|
809,000 |
|
|
Adjustment of the value of the contingent liability |
|
|
– – |
|
|
|
138,922 |
|
|
Change in the fair value of the warranty liability |
|
|
– – |
|
|
|
2,127,656 |
|
|
Adjusted EBITDA |
|
$ |
14,654,447 |
|
|
$ |
14,394,924 |
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