1847 Holdings Announces Fiscal Year 2021 Financial Results with Proforma Revenue Up 23.5% to $51.5M
1847 Holdings (EFSH) reported financial results for FY 2021, showcasing a proforma revenue increase to $51.5 million, up from $41.7 million in 2020. The company completed significant acquisitions, including Wolo and Innovative Cabinets, and secured $24.86 million in institutional funding. Despite the growth, GAAP revenues were $30.66 million, with a net loss of $3.72 million. The company declared its first quarterly dividend in December 2021 and aims to uplist to a major exchange, enhancing future growth potential.
- Proforma revenue increased to $51.5 million in 2021, up from $41.7 million in 2020.
- Completed acquisitions of Wolo, High Mountain, and Innovative Cabinets.
- $24.86 million secured in institutional funding.
- Declared first quarterly dividend in December 2021.
- Proforma adjusted EBITDA improved to $5.77 million from $4.32 million in 2020.
- Net loss from continuing operations increased to $3.72 million in 2021 from $1.82 million in 2020.
NEW YORK, April 01, 2022 (GLOBE NEWSWIRE) -- 1847 Holdings LLC (OTCQB: EFSH) (“1847 Holdings”), a publicly traded holding company platform that combines the attractive attributes of private, lower-middle market businesses with the liquidity and transparency of a publicly traded company, today announced financial results for its fiscal year ended December 31, 2021.
2021 Highlights
- Generated proforma revenue of
$51.5 million for the year ended December 31, 2021, up from proforma revenue of$41.7 million in 2020. - Completed acquisitions of Wolo, High Mountain, and Innovative Cabinets
- Declared first quarterly dividend in December 2021
- Secured
$24.86 million institutional funding at the holding company level - Appointed finance and accounting veteran Vernice Howard as CFO and leading lean manufacturing executive Eric VanDam as COO
“I am tremendously proud of our team and the milestones they achieved in 2021 while executing on our vision for the future,” commented Ellery W. Roberts, CEO of 1847 Holdings. “We generated strong year-over-year performance on a proforma basis, which considers our acquisitions and divestitures to provide a fuller picture of our performance. Our dividend policy, which was first implemented in December 2021, is a clear testament of the strength of our improving operations. As momentum continues to build and we achieve our goal of uplisting to a major exchange, I am confident we can further accelerate revenue growth and drive significant positive EBITDA.”
Financial Highlights
Total GAAP revenues were
The retail and appliances segment, which is operated by our subsidiary Asien’s Appliance, Inc. (“Asien’s”), generates revenue through the sales of home furnishings, including appliances and related products. Revenues from the retail and appliances segment were
The construction segment, which is operated by our subsidiaries Kyle’s Custom Wood Shop, Inc. (“Kyle’s”), High Mountain Door & Trim Inc. (“High Mountain”) and Sierra Homes, LLC d/b/a Innovative Cabinets & Design (“Innovative Cabinets”), generates revenue through the sale of finished carpentry products and services, including doors, door frames, base boards, crown molding, cabinetry, bathroom sinks and cabinets, bookcases, built-in closets, and fireplace mantles, among others, as well as kitchen countertops. Revenues from the construction segment were
The automotive supplies segment, which is operated by our subsidiaries Wolo Mfg. Corp. and Wolo Industrial Horn & Signal, Inc. (together, “Wolo”) generates revenue through the design and sale of horn and safety products (electric, air, truck, marine, motorcycle and industrial equipment), including vehicle emergency and safety warning lights for cars, trucks, industrial equipment and emergency vehicles. Revenues from the automotive supplies segment were
Total cost of sales was
Cost of sales for the retail and appliances segment was
Cost of sales for the construction segment was
Cost of sales for the automotive supplies segment was
General and administrative expenses were
Net loss from continuing operations was
The Company is providing pro forma financial information as the number of acquisitions completed during 2021 and 2020 reduce the comparability of year-over-year figures. The audited consolidated financial statements of the Company for the years ended December 31, 2021 and 2020 include the financial results of Asien’s from May 29, 2020 through December 31, 2021, Kyle’s from October 1, 2020 through December 31, 2021, Wolo from April 1, 2021 through December 31, 2021, and High Mountain and Innovative Cabinets from October 8, 2021 through December 31, 2021. References to “pro forma” figures herein assume the acquisitions all took place on the first day of 2020.
About 1847 Holdings LLC
1847 Holdings LLC (OTCQB: EFSH), a publicly traded diversified acquisition holding company, was founded by Ellery W. Roberts, a former partner of Parallel Investment Partners, Saunders Karp & Megrue and Principal of Lazard Freres Strategic Realty Investors. 1847 Holdings' investment thesis is that capital market inefficiencies have left the founders and/or stakeholders of many small business enterprises or lower-middle market businesses with limited exit options despite the intrinsic value of their business. Given this dynamic, 1847 Holdings can consistently acquire businesses it views as "solid" for reasonable multiples of cash flow and then deploy resources to strengthen the infrastructure and systems of those businesses in order to improve operations. These improvements may lead to a sale or IPO of an operating subsidiary at higher valuations than the purchase price and/or alternatively, an operating subsidiary may be held in perpetuity and contribute to 1847 Holdings' ability to pay regular and special dividends to shareholders.
Forward-Looking Statements
This press release may contain information about 1847 Holdings’ view of its future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on our management’s beliefs, assumptions and expectations of our future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause our actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include but are not limited to the risks set forth in “Risk Factors” included in our SEC filings.
Non-GAAP to GAAP Reconciliation
This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The non-GAAP financial measure used in this press release is proforma adjusted EBITDA.
The non-GAAP financial information should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Management, however, believes that this non-GAAP financial measures, when used in conjunction with the results presented in accordance with GAAP, may provide a more complete understanding of our results and may facilitate a fuller analysis of our results, particularly in evaluating performance from one period to another. Management has chosen to provide this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of results and to illustrate the results giving effect to the non-GAAP adjustments shown in the reconciliation described in the next paragraph. Furthermore, the economic substance behind our decision to use such non-GAAP measures is that such measures approximate our controllable operating performance more closely than the most directly comparable GAAP financial measures. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by us may differ from similar measures used by other companies, even when similar terms are used to identify such measures.
As noted above, the GAAP measure is proforma adjusted EBITDA, which is net loss from continuing operations adjusted for the items described in the table below.
| RECONCILIATION OF PRO FORMA ADJUSTED EBITDA TO NET LOSS TWELVE MONTHS ENDED DECEMBER 31, 2021 | |||||||||||||||||||||||
| 1847 Holdings LLC | High Mountain and Innovative Cabinets January 1 to September 30, 2021 | Wolo January 1 to March 30, 2021 | Pro Forma Adjustments | Notes | Pro Forma | ||||||||||||||||||
| Revenues | $ | 30,660,984 | $ | 18,501,565 | $ | 2,426,455 | $ | - | $ | 51,589,004 | |||||||||||||
| Proforma Adjusted EBITDA: | |||||||||||||||||||||||
| Net income (loss) from continuing operations | (3,721,157 | ) | 2,560,810 | 658,266 | - | (502,081 | ) | ||||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Provision (benefit) for income taxes | 218,139 | - | 129,342 | - | 347,481 | ||||||||||||||||||
| Interest expense, net | 1,296,537 | 11,391 | 355 | - | 1,308,283 | ||||||||||||||||||
| Depreciation and amortization | 908,982 | 170,077 | 1,379 | - | 1,080,438 | ||||||||||||||||||
| EBITDA | (1.297,499 | ) | 2,742,278 | 789,342 | - | 2,234,121 | |||||||||||||||||
| Gain on forgiveness of debt | (360,302 | ) | - | (173,850 | ) | - | (534,152 | ) | |||||||||||||||
| Gain on disposal of property and equipment | (10,885 | ) | (37,000 | ) | - | - | (47,885 | ) | |||||||||||||||
| Loss on extinguishment of debt | 4,017,553 | - | - | - | 4,017,553 | ||||||||||||||||||
| Gain on disposition of subsidiary | (3,282,804 | ) | - | - | - | (3,282,804 | ) | ||||||||||||||||
| Loss on contingency write-down | 602,204 | - | - | - | 602,204 | ||||||||||||||||||
| General and administrative | 6,440 | (2 | ) | 6,440 | |||||||||||||||||||
| Management fees | 1,146,533 | (3 | ) | 1,146,533 | |||||||||||||||||||
| Professional and consulting | - | - | - | 1,623,251 | (4 | ) | 1,623,251 | ||||||||||||||||
| Adjusted EBITDA | $ | (331,733 | ) | $ | 2,705,278 | $ | 615,492 | $ | 2,776,224 | $ | 5,765,261 | ||||||||||||
| RECONCILIATION OF PRO FORMA ADJUSTED EBITDA TO NET LOSS YEAR ENDED DECEMBER 31, 2020 | ||||||||||||||||||||||||||||
| 1847 Holdings LLC | High Mountain and Innovative Cabinets | Wolo | Asien’s Appliance, Inc. January 1 to May 28, 2020 | Kyle’s Custom Wood Shop, Inc. January 1 to September 30, 2020 | Pro Forma Adjustments | Notes | Pro Forma | |||||||||||||||||||||
| Revenues | $ | 8,745,446 | $ | 17,655,250 | $ | 7,444,776 | $ | 5,154,012 | $ | 3,132,105 | $ | - | (n-1) | $ | 42,131,589 | |||||||||||||
| Proforma Adjusted EBITDA: | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | (1,820,138 | ) | 2,616,094 | 814,791 | 458,808 | 883,374 | - | 2,952,929 | ||||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | (83,931 | ) | - | 216,621 | - | - | - | 132,690 | ||||||||||||||||||||
| Interest expense, net | 249,626 | 21,833 | 1,130 | 3,122 | (528 | ) | - | 275,183 | ||||||||||||||||||||
| Depreciation and amortization | 176,612 | 210,826 | 5,949 | 21,199 | 90,376 | - | 504,962 | |||||||||||||||||||||
| EBITDA | (1,477,831 | ) | 2,848,750 | 1,038,491 | 483,129 | 973,222 | - | 3,865,761 | ||||||||||||||||||||
| Gain on sale of property and equipment | - | (44,090 | ) | - | - | - | - | (44,090 | ) | |||||||||||||||||||
| Loss on extinguishment of debt | 286,350 | 286,350 | ||||||||||||||||||||||||||
| Gain on forgiveness of debt | - | (1,191,424 | ) | - | - | (281,125 | ) | - | (1,472,549 | ) | ||||||||||||||||||
| Insurance adjustment | - | - | - | - | - | (59,051 | ) | (1 | ) | (59,051 | ) | |||||||||||||||||
| General and administrative | - | - | - | - | - | 160,323 | (2 | ) | 160,323 | |||||||||||||||||||
| Management fees | - | - | - | - | - | 288,022 | (3 | ) | 288,022 | |||||||||||||||||||
| Professional and consulting | - | - | - | - | - | 1,293,205 | (4 | ) | 1,293,205 | |||||||||||||||||||
| Adjusted EBITDA | $ | (1,191,481 | ) | $ | 1,613,236 | $ | 1,038,491 | $ | 483,129 | $ | 692,097 | $ | 1,682,498 | $ | 4,317,971 | |||||||||||||
PRO FORMA ADJUSTMENT EXPLANATIONS
The pro forma adjustments included in the unaudited pro forma adjusted EBITDA are as follows:
(1) Reflects non acquisition related insurance expense
(2) Reflects general and administrative
(3) Reflects management fee obligation to 1847 Partners
(4) Reflects professional and consulting fees
Contact:
Ellery W. Roberts, Founder & CEO
1847 Holdings LLC
Office: 212.417.9800
info@1847holdings.com
Dave Gentry, CEO
RedChip Companies
Office: 1.800.RED.CHIP (733.2447)
Cell: 407.491.4498
EFSH@redchip.com
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