1847 Reports 115% Increase in Revenue for the Third Quarter of 2022
1847 Holdings (EFSH) reported strong financial results for Q3 2022, showing a remarkable 115% increase in revenue to $14.5 million, up from $6.7 million in Q3 2021. Gross profit surged 125.5% to $4.9 million, with a margin increase to 33.7%. Despite this growth, the company recorded a net loss of $4.5 million, attributed to high interest expenses and debt extinguishment losses. They reaffirmed a 2023 revenue guidance of over $60 million and anticipate a dividend exceeding $2 million. CEO Ellery W. Roberts emphasized the robust acquisition pipeline and plans for future capital rewards for shareholders.
- Total revenue increased by 115% to $14.5 million year-over-year.
- Gross profit rose 125.5% to $4.9 million, with an improved gross profit margin of 33.7%.
- The company reaffirmed its 2023 revenue guidance of over $60 million and anticipated dividends exceeding $2 million.
- Net loss from continuing operations was $4.5 million, significantly higher than a loss of $973,317 in Q3 2021.
- Increased interest expenses of $1.9 million and loss on extinguishment of debt of $2.0 million impacted profits.
Gross profit increases
NEW YORK, NY / ACCESSWIRE / November 14, 2022 / 1847 Holdings LLC ("1847" or the "Company") (NYSE American:EFSH), a unique holding company that combines the attractive attributes of owning private, lower-middle market businesses with the liquidity and transparency of a publicly traded company, today provided a business update and reported financial results for the third quarter ended September 30, 2022.
Third Quarter 2022 Highlights and Subsequent Events
- Total revenue was
$14.5M in Q3 2022 compared to$6.7M in Q3 2021, a114.9% increase year-over-year - Gross profit was
$4.9M in Q3 2022 compared to$2.2M in Q3 2021, a125.5% increase year-over-year - Gross profit margin for Q3 2022 was
33.7% compared to32.1% for Q3 2021 - On September 1, 2022, the Company declared a common share dividend of
$0.13 125 per share to shareholders of record as of September 30, 2022. This dividend was be paid on October 17, 2022. - Reaffirms prior guidance of 2023 revenue in excess of
$60 million , gross profit margin of approximately40% and over$7 million of cash flow from operations; anticipates dividend in excess of$2 million for 2023.
Mr. Ellery W. Roberts, CEO of 1847 Holdings, commented, "We continue to generate solid year-over-year growth, with revenue increasing
"We are very excited about our results and believe that they demonstrate the strength of our platform. We could not have built this platform without our loyal shareholder base. Many of our shareholders have been involved with our company since our inception. In addition to our regular cash dividend, we are investigating different ways to reward our shareholder base that also will provide us with additional capital for future acquisitions, including a rights offering of warrants that would give our shareholders the ability to purchase additional common shares over time," concluded Mr. Roberts.
Q3 2022 Financial Highlights
Total revenues were
- Revenues from the retail and appliances segment decreased by
$211,250 , or6.7% , to$2,934,705 for the three months ended September 30, 2022 from$3,145,955 for the three months ended September 30, 2021. The decrease was primarily due to ongoing supply chain delays and cost increases with appliance manufacturers, increased time it takes to receive products, and decreased customer demand. - Revenues from the construction segment increased by
$8,709,518 , or650.7% , to$10,047,946 for the three months ended September 30, 2022 from$1,338,428 for the three months ended September 30, 2021. The increase was primarily due to the acquisitions of High Mountain and Innovative Cabinets, which were acquired in the fourth quarter of 2021. - Revenues from the automotive supplies segment decreased by
$760,935 , or33.8% , to$1,489,710 for the three months ended September 30, 2022 from$2,250,645 for the three months ended September 30, 2021. The decrease was primarily due to ongoing supply chain delays and cost increases, increased time it takes to receive products, and decreased customer demand.
Total cost of sales was
- Cost of sales for the retail and appliances segment decreased by
$116,691 , or5.1% , to$2,183,972 for the three months ended September 30, 2022 from$2,300,663 for the three months ended September 30, 2021. The decrease was primarily due to the corresponding decrease in revenues from the retail and appliance segment - Cost of sales for the construction segment increased by
$5,739,330 , or712.5% , to$6,544,843 for the three months ended September 30, 2022 from$805,513 for the three months ended September 30, 2021. The increase was primarily due to the acquisitions of High Mountain and Innovative Cabinets, which were acquired in the fourth quarter of 2021. - Cost of sales for the automotive supplies segment decreased by
$599,375 , or40.9% , to$867,572 for the three months ended September 30, 2022 from$1,466,947 for the three months ended September 30, 2021. The decrease was primarily due to the corresponding decrease in revenues from the automotive segment.
Total general and administrative expenses were
Net loss from continuing operations was
Nine Month 2022 Financial Highlights
Total revenues were
- Revenues from the retail and appliances segment decreased by
$1,440,439 , or14.8% , to$8,322,500 for the nine months ended September 30, 2022 from$9,762,939 for the nine months ended September 30, 2021. The decrease was primarily due to ongoing supply chain delays and cost increases with appliance manufacturers, increased time it takes to receive products, and decreased customer demand. - Revenues from the construction segment increased by
$21,830,922 , or523.6% , to$26,000,227 for the nine months ended September 30, 2022 from$4,169,305 for the nine months ended September 30, 2021. The increase was primarily due to the acquisitions of High Mountain and Innovative Cabinets, which were acquired in the fourth quarter of 2021. - Revenues from the automotive supplies segment increased by
$883,742 , or20.9% , to$5,114,755 for the nine months ended September 30, 2022 from$4,231,013 for the nine months ended September 30, 2021. The increase was primarily due to the acquisition of Wolo, which was acquired on March 31, 2021.
Total cost of sales was
- Cost of sales for the retail and appliances segment decreased by
$1,163,920 , or15.7% , to$6,245,993 for the nine months ended September 30, 2022 from$7,409,913 for the nine months ended September 30, 2021. The decrease was primarily due to the corresponding decrease in revenues from the retail and appliance segment, offset by increased product and delivery costs. - Cost of sales for the construction segment increased by
$13,555,821 , or594.6% , to$15,835,830 for the nine months ended September 30, 2022 from$2,280,009 for the nine months ended September 30, 2021. The increase was primarily due to the acquisitions of High Mountain and Innovative Cabinets, which were acquired in the fourth quarter of 2021. - Cost of sales for the automotive supplies segment increased by
$369,368 , or13.9% , to$3,028,040 for the nine months ended September 30, 2022 from$2,658,672 for the nine months ended September 30, 2021. The increase was primarily due to the acquisition of Wolo, which was acquired on March 31, 2021.
Total general and administrative expenses were
Net loss from continuing operations was
EBITDA and Adjusted EBITDA
The Company reported Adjusted EBITDA of (
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net income (loss) | $ | (4,472,622 | ) | $ | (973,317 | ) | $ | (5,547,498 | ) | $ | 1,157,540 | |||||
Interest expense | 1,875,757 | 128,199 | 3,714,623 | 309,832 | ||||||||||||
Income tax benefit | (1,095,000 | ) | - | (1,411,000 | ) | (21,900 | ) | |||||||||
Depreciation and amortization | 516,414 | 299,477 | 1,526,759 | 547,655 | ||||||||||||
EBITDA | (3,175,451 | ) | (545,641 | ) | (1,717,116 | ) | (1,993,127 | ) | ||||||||
Other income | (2,756 | ) | (14,424 | ) | (3,431 | ) | - | |||||||||
Gain on forgiveness of debt | - | - | - | (360,302 | ) | |||||||||||
Gain on disposal of property and equipment | (15,614 | ) | (10,885 | ) | (47,690 | ) | (10,885 | ) | ||||||||
Gain on disposition of subsidiary | - | - | - | (3,282,804 | ) | |||||||||||
Loss on extinguishment of debt | 39,815 | - | 39,815 | 57,792 | ||||||||||||
Loss on write-down of contingent note payable | 58,817 | - | 158,817 | - | ||||||||||||
1847 operations team | 230,300 | 105,000 | 658,000 | 321,000 | ||||||||||||
Management fees | 275,000 | 225,000 | 825,000 | 600,000 | ||||||||||||
Adjusted EBITDA | $ | (2,589,889 | ) | $ | (240,950 | ) | $ | (86,605 | ) | $ | (682,072 | ) |
About 1847 Holdings LLC
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.
For the latest insights, follow 1847 on Twitter.
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 source version on accesswire.com:
https://www.accesswire.com/725603/1847-Reports-115-Increase-in-Revenue-for-the-Third-Quarter-of-2022
FAQ
What were the Q3 2022 revenue figures for 1847 Holdings (EFSH)?
How much did gross profit increase for 1847 Holdings in Q3 2022?
What is the net loss reported by 1847 Holdings for Q3 2022?
What is 1847 Holdings' (EFSH) guidance for 2023 revenue?