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Cabinet Holding Firm 1847 Revenue Rose 115% in Third Quarter

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November 14, 2022 | Bill Esler

New York, NY—1847 Holdings LLC (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

Revenues from the construction segment increased by $8,709,518, or 650.7%, 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 construction segment increased by $21,830,922, or 523.6%, 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.

On September 1, 2022, the Company declared a common share dividend of $0.13125 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 approximately 40% 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 115% and 117% for the three and nine months ended September 30, 2022, respectively. Additionally, we achieved an increase in gross profit of 126% and 146% for the three and nine months ended September 30, 2022, respectively.

This success is further illustration of our ability to acquire undervalued, cash flow positive, lower-middle market businesses at attractive valuations. We have also invested in the business through the addition of key personnel to support the growth of our operating subsidiaries, and believe we now have the internal resources to significantly scale the business, both organically and through future acquisitions. We have a very robust acquisition pipeline, as valuations for small business enterprises have come down dramatically due to inflation and market conditions, which creates a perfect opportunity for us.

“Moreover, we are able to leverage appropriate levels of debt to acquire these businesses with minimal dilution to our shareholders. Given the consistency and historical profitability of our operating subsidiaries, as recently announced, we currently anticipate 2023 revenue in excess of $60 million, gross profit margin of approximately 40% and over $7 million of cash flow from operations. We also expect our cash dividend to exceed $2 million in 2023, reflecting the continued growth, stability and profitability of our operating subsidiaries. It is important to note that these projections do not include any additional acquisitions. Looking ahead, we believe we have built a highly scalable business model, which we believe will generate substantial returns value for shareholders in 2023 and beyond.”

“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.

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