BALLWIN, Mo.--(BUSINESS WIRE)--1847 Goedeker Inc. (NYSE American: GOED) (“Goedekers” or the “Company”), a one-stop e-commerce destination for appliances and furniture, and Appliances Connection, a leading appliance retailer under a definitive agreement to be acquired by the Company, today reported financial results for the first quarter ended March 31, 2021.
Key Highlights:
- Appliances Connection acquisition, announced in Q4 2020 and expected to close in Q2 2021.
- Combined revenue up 84% year-over-year to $123.0 million in the first quarter of 2021, driven by continued strong growth in site sessions, up 61% to 11.1 million, and written orders, up 105% to $199.3 million.
- Gross profit was $32.2 million for the combined companies, or 26.2% of total first quarter 2021 net revenue, up from 18.9% in the first quarter of 2020.
- Combined adjusted EBITDA of $14.7 million in the first quarter of 2021 surpassed the proforma adjusted EBITDA of $14.3 million reported by the combined companies for the full year of 2020.
- As of March 31, 2021, the combined companies had $40.1 million of cash on a proforma basis and $7.1 million in restricted cash.
“On a combined basis we generated exceptional performance in the first quarter with record sales and record EBITDA,” stated Doug Moore, CEO of 1847 Goedeker. “Our first quarter adjusted EBITDA surpassed the entire year’s performance for 2020, with similar strong improvements to our combined net income. We remain on track to complete our acquisition of Appliances Connection in the near term, creating what we believe will be the largest pure-play online retailer of household appliances in the US.”
“A better flow of merchandise in the quarter was combined with a shipped product mix that helped grow product margins to 19.3% at Goedekers and 27% at Appliances Connection,” commented Albert Fouerti, President of Appliances Connection.
Moore continued, “Our order fulfillment abilities are slowly normalizing but still at only 61% versus a historical rate of more than 80%. As manufacturers return to prior production levels and with the opening of our new 86,000 square foot St. Louis fulfillment center, which triples our Midwest capacity, we believe that Goedekers will quickly return to its normal shipping trends.”
Goedekers plans to host a conference call to discuss its first quarter financial results and outlook for 2021 after completing its acquisition of Appliances Connection. The Company will issue a press release with the conference call details after the timing is confirmed.
About 1847 Goedeker Inc.
1847 Goedeker Inc. is an industry leading e-commerce destination for appliances, furniture, and home goods. Since its founding in 1951, Goedekers has transformed from a local brick and mortar operation serving the St. Louis metro area to a respected nationwide omnichannel retailer that offers one-stop shopping for national and global brands. While the Company maintains its St. Louis showroom, over 95% of sales are placed through its website (www.Goedekers.com). Goedeker’s provides visitors an easy to navigate shopping experience and offers more than 141,000 items organized by category and product features. Learn more at www.Goedekers.com.
About Appliances Connection
Founded in 2000, Appliances Connection is one of the leading retailers of household appliances with a 200,000 square foot warehouse in Hamilton, NJ and a 23,000 square foot showroom in Brooklyn, New York. Appliances Connection carries many household name brands, including Bosch, Cafe, Frigidaire Pro, Whirlpool, LG, and Samsung, and also carries many major luxury appliance brands such as Miele, Thermador, La Cornue, Dacor, Ilve, Wolf, Jenn-Air, Viking among others. Appliance Connection provides appliance installation services and appliance removal services. In addition to selling appliances, it also sells furniture, fitness equipment, plumbing fixtures, televisions, outdoor appliances, and patio furniture, as well as commercial appliances for builder and business clients.
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 the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the final prospectus related to the public offering filed with the Securities and Exchange Commission and other reports filed with the Securities and Exchange Commission thereafter. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
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 U.S. GAAP. Adjusted EBITDA is used to facilitate a comparison of the ordinary, ongoing and customary course of the operations of the combined company on a consistent basis from period to period and provide an additional understanding of factors and trends affecting the business of the combined company. Adjusted EBITDA may not be comparable to similarly titled non-GAAP measures used by other companies as other companies may have calculated the measures differently.
The reconciliation of Adjusted EBITDA to net loss for the combined company (on a pro forma basis) is provided below:
|
|
Three Months Ended March 31, 2021 |
|
|
Year Ended December 31, 2020 |
|
||
Net income (loss) |
|
$ |
12,983,184 |
|
|
$ |
(6,355,347 |
) |
Income tax expense |
|
|
- |
|
|
|
698,303 |
|
Depreciation and amortization |
|
|
275,427 |
|
|
|
1,332,485 |
|
Financing costs |
|
|
- |
|
|
|
762,911 |
|
Interest expense |
|
|
1,395,836 |
|
|
|
5,424,521 |
|
Sales tax accrual |
|
|
- |
|
|
|
7,700,378 |
|
One-time non-operational events: |
|
|
|
|
|
|
|
|
Loss on extinguishment of debt |
|
|
- |
|
|
|
1,756,095 |
|
Write-off of acquisition receivable |
|
|
- |
|
|
|
809,000 |
|
Adjustment in value of contingency |
|
|
- |
|
|
|
138,922 |
|
Change on fair value of warrant liability |
|
|
- |
|
|
|
2,127,656 |
|
Adjusted EBITDA |
|
$ |
14,654,447 |
|
|
$ |
14,394,924 |
|
