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1847 Holdings Reports $6.6M Revenue and $3.0M Net Income for Q2 2021

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Revenue up 461% from Q2 2020

Positive net income represents $3.7M improvement from net loss in Q2 2020

Shareholders’ equity increased 181% to $9M

NEW YORK, Aug. 17, 2021 (GLOBE NEWSWIRE) -- 1847 Holdings LLC (OTCQB: EFSH) (the “Company”), 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 its results of operations for the second quarter ended June 30, 2021.

Second Quarter Highlights:

  • Revenue increased to $6.6 million, up 461% compared to Q2 2020

  • Positive net income from continuing operations of $3.0 million, up $3.7 million from a net loss of $0.7 million in Q2 2020

  • Shareholders’ equity increased to $9 million, up 181% from $3.2 million as of December 31, 2020

“We are thrilled to report a strong quarter of record performance,” commented Ellery W. Roberts, the CEO of 1847 Holdings. “We believe our current portfolio of holdings, combined with our growing pipeline of potential exciting deals, provides a formidable foundation from which we can fuel long-term shareholder value improvement.”

Financial Summary:

1847 Holdings’ total revenues were $6.6 million for the three months ended June 30, 2021, up 461% compared to $1.2 million for the three months ended June 30, 2020.

The retail and appliances segment generates revenue through the sales of home furnishings, including appliances and related products. Revenues from the retail and appliances segment were $3.4 million for the three months ended June 30, 2021, as compared to $1.2 million for the period from May 29, 2020 to June 30, 2020.

The construction segment generates revenue through the construction and sale of custom cabinetry, including kitchen and bath cabinets, fireplace mantels and surrounds, entertainment systems and wall units, bookcases and office cabinets. Revenues from the construction segment were $1.3 million for the three months ended June 30, 2021.

The automotive supplies segment generates revenue through the design, manufacture 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 $2.0 million for the three months ended June 30, 2021.

There are no year-over-year comparisons for the Company’s construction and automotive supplies segments as these are new business lines entered subsequent to the close of the second quarter of 2020.

The Company’s total cost of sales was $4.5 million for the three months ended June 30, 2021, as compared to $0.9 million for the three months ended June 30, 2020.

Cost of sales for the retail and appliances segment consists of the cost of purchased merchandise plus the cost of delivering merchandise and where applicable installation, net of promotional rebates and other incentives received from vendors. Cost of sales for the retail and appliances segment was $2.6 million for the three months ended June 30, 2021, as compared to $0.9 million for the period from May 29, 2020 to June 30, 2020. As a percentage of retail and appliances revenues, cost of sales for the retail and appliances segment was 77.6% for the three months ended June 30, 2021 and 77.9% for the period from May 29, 2020 to June 30, 2020.

Cost of sales for the construction segment consists of lumber, hardware and materials and plus direct labor and related costs, net of any material discounts from vendors. Cost of sales for the construction segment was $0.7 million for the three months ended June 30, 2021. As a percentage of construction revenues, cost of sales for the construction segment was 54.8% for the three months ended June 30, 2021.

Cost of sales for the automotive supplies segment consists of the costs of purchased finished goods plus freight and tariff costs. Cost of sales for the automotive supplies segment was $1.2 million for the three months ended June 30, 2021. As a percentage of automotive supplies revenues, cost of sales for the automotive supplies segment was 60.2% for the three months ended June 30, 2021.

The Company’s total general and administrative expenses, which consist primarily of professional advisor fees, stock-based compensation, bad debts reserve, rent expense, advertising, bank fees, and other expenses incurred in connection with general operations, were $1.4 million for the three months ended June 30, 2021, as compared to $0.8 million for the three months ended June 30, 2020.

Net income from continuing operations was $3.0 million for the three months ended June 30, 2021, as compared to a net loss of $0.7 million for the three months ended June 30, 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 deploys resources to strengthen the infrastructure and systems 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.

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
dave@redchip.com