1847 Holdings Reports CMD Inc. Strong Revenue Growth and Profitability for Fiscal Year 2023 and Nine Months Ended September 30, 2024

Rhea-AI Summary

1847 Holdings' (NYSE:EFSH) subsidiary CMD Inc., a Las Vegas-based cabinetry manufacturer, reported strong financial results for FY2023 and the first nine months of 2024. In FY2023, revenues grew 97.5% to $27.1 million, with net income reaching $5.8 million, marking a significant turnaround from a $1.5 million loss in 2022.

For the nine months ended September 30, 2024, CMD continued its growth trajectory with revenues up 21.8% to $23.3 million and net income increasing 90.6% to $6.6 million. The company has implemented strategic initiatives including expansion into Arizona and Utah markets, establishing a new division for tract home projects in Northern Las Vegas, and plans to enter the Ready-To-Assemble cabinetry market for multi-family housing through synergies with subsidiary Innovative Cabinets and Design.

Positive

• Revenue growth of 97.5% to $27.1M in FY2023
• Net income turnaround from -$1.5M to $5.8M in FY2023
• Gross profit increase of 187.5% to $10.8M in FY2023
• 90.6% increase in net income to $6.6M for first nine months of 2024
• Geographic expansion into Arizona and Utah markets

Negative

• None.

CMD Inc. Achieves Significant Revenue Growth and Profitability

NEW YORK, NY / ACCESS Newswire / February 14, 2025 / 1847 Holdings LLC (NYSE American:EFSH) ("1847 Holdings" or the "Company") today announced the financial results of its subsidiary, CMD Inc., a leading cabinetry, millwork, and door manufacturer based in Las Vegas, for the fiscal year 2023 and the nine months ended September 30, 2024.

CMD Inc. Fiscal Year 2023 Financial Highlights:

• Revenues increased by 97.5% to $27.1 million in 2023, compared to $13.7 million in 2022

• Achieved a gross profit of $10.8 million in 2023, an 187.5% increase from $3.8 million in the prior year

• Income from operations improved to $6.0 million in 2023, a notable turnaround from a loss of $1.3 million in 2022

• Net income increased to $5.8 million in 2023, compared to a net loss of $1.5 million in 2022

CMD Inc. Nine Months Ended September 30, 2024 Financial Highlights:

• Revenues increased 21.8% to $23.3 million in the nine months ended September 30, 2024, compared to $19.1 million in the same period of 2023

• Increased gross profit by 51.3% to $10.8 million in the nine months ended September 30, 2024, compared to $7.1 million in the same period of 2023

• Income from operations increased 85.4% to $6.7 million in the nine months ended September 30, 2024, compared to $3.6 million in the same period of 2023

• Net income increased by 90.6% to $6.6 million in the nine months ended September 30, 2024, compared to $3.4 million in the same period of 2023

Ellery W. Roberts, CEO of 1847 Holdings, commented, "CMD Inc.'s outstanding financial performance underscores the effectiveness of our acquisition strategy and the strength of CMD's operations. To drive CMD's growth, we have implemented several strategic initiatives. We have obtained licenses to operate in Arizona and Utah and are actively bidding on projects scheduled to commence in 2025. Additionally, we have established a dedicated division focused on tract home projects in Northern Las Vegas, targeting both local and national builders. Recognizing a significant market opportunity in supplying Ready-To-Assemble (RTA) cabinetry for Las Vegas' multi-family housing market, we plan to leverage synergies with 1847 Holdings' subsidiary, Innovative Cabinets and Design, to address this demand. We believe that these strategic initiatives position CMD for continued growth and enhanced market presence. By expanding into high-demand areas and addressing unmet market needs, we believe that CMD is well-equipped to capitalize on emerging opportunities. The acquisition of CMD further illustrates our ability to identify and acquire undervalued businesses with strong profitability at attractive valuations."

About 1847 Holdings

1847 Holdings LLC (NYSE American: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. For more information, visit www.1847holdings.com.

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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.

Contact:

Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: EFSH@crescendo-ir.com

SOURCE: 1847 Holdings LLC

View the original press release on ACCESS Newswire

FAQ

What was CMD Inc.'s revenue growth for EFSH in fiscal year 2023?

CMD Inc.'s revenue grew by 97.5% to $27.1 million in fiscal year 2023, compared to $13.7 million in 2022.

How much net income did CMD Inc. (EFSH) generate in the first nine months of 2024?

CMD Inc. generated $6.6 million in net income during the first nine months of 2024, representing a 90.6% increase from $3.4 million in the same period of 2023.

What new markets is CMD Inc. (EFSH) expanding into for 2025?

CMD Inc. has obtained licenses to operate in Arizona and Utah and is actively bidding on projects scheduled to commence in 2025.

What was CMD Inc.'s (EFSH) gross profit improvement in FY2023?

CMD Inc.'s gross profit increased by 187.5% to $10.8 million in 2023, up from $3.8 million in the previous year.

What new business segment is CMD Inc. (EFSH) targeting in Las Vegas?

CMD Inc. is targeting the Ready-To-Assemble (RTA) cabinetry market for Las Vegas' multi-family housing market and has established a dedicated division for tract home projects in Northern Las Vegas.