1847 Holdings reports Q4 revenue $15.1M vs. $9.5M las year

Ellery W. Roberts, CEO of 1847 Holdings, commented, “2023 marked a significant turning point for our company. I am pleased to report we achieved record annual revenue of $68.7 million for the year ended December 31, 2023, with gross profit increasing by 50% over the year ended December 31, 2022. Notably, our fourth quarter revenues for 2023 increased by 59.2%, complemented by a 99.8% increase in gross profit compared to the same period in the previous year. This exceptional performance is a testament to the robustness of our platform and our adeptness in fostering the growth and profitability of our portfolio companies. A prime example of this is our acquisition of ICU Eyewear in February 2023, a highly lucrative venture, at a purchase price of less than three times EBITDA. This addition to 1847 served as a key catalyst for revenue growth, improved margins, and overall profitability gains in 2023. We maintain a strong acquisition pipeline, focusing on companies that offer accretive value and positive cash flow, all while minimizing dilution for our shareholders. Beyond our recent success, we are actively evaluating further transactions to leverage our momentum. Recently, we disclosed the signing of a non-binding LOI to acquire a prominent millwork, cabinetry, and door manufacturer headquartered in Las Vegas, NV. This target boasts revenues of $28.6 million, with a purchase price of $16.75 million which represents approximately 3.2x 2023 EBITDA.. This acquisition presents an attractive opportunity for 1847, as we have negotiated favorable terms, and we believe we can successfully complete this transaction without the need for equity-based funding at this time. We have achieved several significant milestones throughout 2023 and the beginning of 2024. At this time, we believe that the true intrinsic value of our business has yet to be fully realized by the public market. Consequently, we are actively exploring various strategic avenues, including subsidiary spin-offs, aimed at maximizing value for our shareholders. Towards this end, we have engaged Spartan Capital to pursue a spin-off or strategic transaction for 1847 Cabinets Inc. Through a spin-off, our shareholders would retain their current equity in 1847 while also receiving a pro-rata share of 1847 Cabinets Inc. Importantly, 1847 Cabinets Inc. has consistently demonstrated revenue growth alongside improved profitability, making it an opportune moment for such a strategic move. Most recently, we have received a non-binding LOI from a prospective strategic acquirer expressing interest in acquiring all or substantially all of the assets of 1847 Cabinets Inc. for a purchase price of up to $27 million. Our portfolio comprises outstanding businesses, each possessing considerable value far exceeding our current market capitalization. Looking ahead to 2024, we anticipate sustaining robust revenue growth, which should substantially bolster our profitability as we capitalize on our fixed costs and benefit from economies of scale.”