1847 Goedeker Inc. Announces Third Quarter 2021 Results
1847 Goedeker Inc. (GOED) reports
- Achieved Q3 2021 net sales of
$141.9 million , a 38.8% proforma increase from prior year. - Gross profit improved to
$31.4 million , with a margin of 22.1%. - Proforma net income of
$3.9 million , compared to a net loss in Q3 2020. - Year-to-date proforma sales of
$405.0 million , up from$260.4 million in 2020. - Full-year revenue guidance confirmed to be between
$520 million and$550 million .
- None.
Achieved Combined Sales of
Reaffirms Full-Year Guidance for Proforma Revenue, Gross Margin and Adjusted EBITDA
Combined Proforma Financial Highlights
Third Quarter
-
Net sales were
$141.9 million $102.2 million -
Gross profit was
$31.4 million 22.1% margin), compared to proforma gross profit of$21.0 million 20.5% margin) for the third quarter 2020. -
Proforma net income was
$3.9 million $0.03 $0.7 million $0.01 -
Adjusted proforma EBITDA was
$11.0 million 7.7% margin).
Year to Date
-
Proforma net sales were
$405.0 million September 30 th, compared to$260.4 million -
Proforma gross profit was
$96.1 million 23.7% margin) for the nine-month period endedSeptember 30 th, compared to$52.4 million 20.1% margin) the same period in 2020. -
Proforma net income was
$32.1 million $3.2 million -
Adjusted proforma EBITDA was
$43.9 million 10.8% margin).
GAAP Financial Highlights
Third Quarter
-
Net sales were
$141.9 million $13.4 million -
Gross profit totaled
$31.3 million $2.2 million -
Net income was
$3.3 million $0.03 $4.2 million $0.74 -
Cash and cash equivalents of
$27.2 million $8.0 million
Business and Strategy Highlights
Third Quarter
- Announced the appointment of Alberti Fouerti as Chief Executive Officer.
- Began adding new talent to support the Company’s ecommerce strategy, including individuals with experience in analytics, marketing, merchandise and supply chain initiatives.
- Began working with an independent consultant to align executive compensation with the Company’s future performance.
- Established plan to roll out the Company’s new brand during the first half of 2022.
- Established plan to add multiple fulfillment centers in strategic locations during the first half of 2022.
- Initiated an evaluation of strategies for optimizing the Company’s capital structure following this year’s warrant issuance.
-
Shared an overview of the Company’s ecommerce strategy for achieving growth and greater market share, and outlined the priorities that include:
- Maintaining a best-in-class technology stack and digital marketing presence;
- Offering expansive product selection;
- Having competitive pricing;
- Consistently providing fast and reliable shipping, and;
- Delivering stronger expert-level customer service.
Albert Fouerti, Chief Executive Officer and Director, commented:
“Since becoming Chief Executive Officer, I have been focused on putting in place an ecommerce strategy that leverages content, scale and technology to help us achieve sustained growth in the home appliances market. This was the type of strategy that was helping us consistently grow Appliances Connection prior to the combination with Goedeker. It is important for all of our stockholders to know that the Company now has clear near-term priorities that include completing our rebranding, expeditiously expanding our fulfillment network, maintaining unmatched selection and using our digital assets to create content-driven communities that fuel lifetime customer loyalty. It is equally important to stress that we are also adding new technology and supply chain talent, appointing highly-qualified board members and exploring ways to optimize our capital structure over time.
With respect to the quarter, we are pleased to have delivered very healthy growth in our first full reporting period as a combined entity. Our increased scale positioned us to obtain inventory, meet increased customer demand and mitigate the full impact of global supply chain constraints. We feel well-positioned from an inventory perspective heading into next quarter, and we will continue to execute against our outlined priorities and aggressively pursue greater market share. We intend to follow in the footsteps of other successful ecommerce businesses that have maintained a disciplined focus on growth to ultimately obtain true category leadership.”
Guidance
The Company reaffirms its previous outlook and continues to expect full-year revenue on a proforma basis to be between
Investor Conference Call
The Company will host an investor conference call to discuss its financial results today at
About Goedeker
Goedeker is an industry leading ecommerce destination for appliances, furniture and home goods. Through its
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
Non-GAAP Financial Measures
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 combined 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 loss before income taxes, depreciation and amortization, financing costs, interest expense, sales tax accrual and one-time non-operational events. Adjusted EBITDA is not measures calculated in accordance with GAAP, and they should not be considered an alternative to any financial measures that were calculated under
The reconciliation of Adjusted EBITDA to net income for the Company (on a pro forma basis) is provided below (in millions):
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Three Months Ended
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Nine Months Ended
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NET INCOME |
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$ |
3.9 |
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$ |
32.1 |
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ADJUSTMENTS |
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Income taxes |
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|
2.3 |
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(4.0) |
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|||
Depreciation and amortization |
|
|
2.8 |
|
|
|
8.3 |
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|||
Financing costs |
|
|
0.2 |
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0.3 |
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Interest expense |
|
|
0.9 |
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|
|
2.4 |
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|
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EBITDA |
|
|
10.1 |
|
|
|
39.1 |
|
|||
Acquisition expenses |
|
|
0.1 |
|
|
|
0.9 |
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|||
Loss on extinguishment of debt |
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- |
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1.7 |
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|||
Loss on abandonment of Right of Use asset |
|
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- |
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|
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1.4 |
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|||
Severance expense |
|
|
0.8 |
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|
|
0.8 |
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ADJUSTED EBITDA |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20211115005708/en/
Goedeker Investor Relations
IR@goedekers.com
ir@goedekers.com
Source:
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