1847 Reports 15.0% Increase in Revenue to $14.9 Million for the First Quarter of 2024

Gross profit increases 13.3% in Q1 2024 vs Q1 2023

 

NEW YORK, NY / ACCESSWIRE / May 16, 2024 / 1847 Holdings LLC("1847" or the "Company") (NYSE American:EFSH), a holding company specializing in identifying over-looked, deep value investment opportunities in middle market businesses, today provided a business update and reported financial results for the first quarter ended March 31, 2024.

Q1 2024 Key Highlights

Total Revenue was $14.9M in Q1 2024 compared to $13.0M in Q1 2023, a 15.0% year-over-year increase

Gross profit was $5.6M in Q1 2024 compared to $4.9M in Q1 2023, a 13.3% year-over-year increase

Executed Letter of Intent to Sell 1847 Cabinets Inc. for $27.6 Million

Executed non-binding LOI to acquire a large, established millwork, cabinetry and door manufacturer based in Las Vegas, NV with revenues of $28.6 million, with a purchase price of $16.75 million which represents approximately 3.2x 2023 EBITDA

Announced ICU Eyewear subsidiary diversified manufacturing to reduce production costs and fortify supply chain

Announced ICU Eyewear subsidiary's strategic expansion of partnerships, adding 300 new locations with leading US retailer

Completed refinancing and upsizing of $15 million revolving credit facility for ICU Eyewear subsidiary

Expanded Wolo Manufacturing Corp subsidiary into India through supply chain diversification program

Restructured promissory notes to non-dilutive debt instruments

Divested Asien's Appliance business, significantly enhancing balance sheet

Mr. Ellery W. Roberts, CEO of 1847 Holdings, commented, "I am pleased to report we achieved a 15.0% year-over-year increase in revenue and a 13.3% year-over-year increase in gross profit. Additionally, revenues from the automotive supply segment increased by 41.1% to $1.8 million. This growth can be attributed to strategic initiatives begun in Q4 2023, coupled with a new credit facility established in late January 2024, further empowering the acceleration of this business segment's expansion. This achievement reaffirms the substantial value that 1847 delivers to our subsidiaries, both financially and operationally. During the quarter, we successfully divested of our Asien's Appliance, significantly enhancing our balance sheet. This resulted in a $1.1 million gain for Q1 2024. By strategically divesting of Asien's, we anticipate a reduction in 1847 Holdings' expenses by approximately $10.9 million annually, which should positively impact margins across our primary business lines. The divestiture of Asien's enables us to streamline operations, optimize resource allocation, and position 1847 Holdings for sustained growth and profitability. This underscores our commitment to delivering shareholder value, as we continue to pursue opportunities for growth and enhanced profitability, in alignment with our long-term strategic goals."