1847 Provides Further Detail on Previously Completed Sale of High Mountain Door & Trim Division; Reports Sale Price of Approximately $17 Million, More than Double the Original Purchase Price
Rhea-AI Summary
1847 Holdings (NYSE American: EFSH) has completed the sale of High Mountain Door & Trim (HMDT) to Builders FirstSource for approximately $17 million, more than double its original purchase price. HMDT, a Reno-based finished carpentry products company, reported preliminary unaudited revenue of $30.0 million and a net loss of $2.3 million for the trailing twelve months ended September 30, 2024. The company's Adjusted EBITDA was approximately $2.8 million. 1847 plans to reinvest part of the proceeds to continue its strategy of identifying, operating, and selling undervalued assets.
Positive
- Sale price of $17 million represents more than 100% return on investment
- Strong revenue generation with $30.0 million in trailing twelve months
- Positive Adjusted EBITDA of $2.8 million
Negative
- Net loss of $2.3 million in trailing twelve months
- Operating loss of $2.7 million
- Impairment of goodwill and intangible assets of $2.7 million
News Market Reaction – EFSH
In the trading session that priced this news, EFSH gained 8.74%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, NY / ACCESSWIRE / November 15, 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 further detail on the previously announced, successful sale of High Mountain Door & Trim Inc. ("HMDT"), a division of 1847 Cabinets, to Builders FirstSource, Inc., the largest U.S. supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling. The Company reports it completed the sale for approximately
Based in Reno, Nevada, and founded in 2014, HMDT specializes in finished carpentry products and services. The sale agreement includes a working capital adjustment and other standard terms. 1847 plans to reinvest part of the proceeds to continue its strategy of identifying, operating, and selling undervalued assets.
Mr. Ellery W. Roberts, CEO of 1847 Holdings, commented, "This transaction is a key milestone for 1847, exemplifying our model of enhancing asset value prior to sale. The capital generated will reinforce our financial foundation, support new growth initiatives, and enable potential acquisitions that align with our value creation strategy. The fact we sold this business for
For the trailing twelve months ended September 30, 2024, HMDT recorded preliminary unaudited revenue of approximately
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| TTM |
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| 12-Months |
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| 9/30/2024 |
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| HMDT |
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Revenues |
| $ | 30,017,547 |
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|
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Operating Expenses |
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|
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Cost of revenues |
|
| 18,837,167 |
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Personnel |
|
| 6,104,582 |
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Depreciation and amortization |
|
| 593,015 |
|
General and administrative |
|
| 4,288,793 |
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Professional fees |
|
| 179,912 |
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Impairment of goodwill and intangible assets |
|
| 2,707,732 |
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Total Operating Expenses |
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| 32,711,201 |
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INCOME (LOSS) FROM OPERATIONS |
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| (2,693,654 | ) |
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Other Income (Expenses) |
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|
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Other income (expense) |
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| 1,290,275 |
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Interest expense |
|
| (521,519 | ) |
Amortization of debt discounts |
|
| (84,561 | ) |
Gain (loss) on disposal of property and equipment |
|
| (13,815 | ) |
Total Other Income (Expenses) |
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| 670,380 |
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NET INCOME (LOSS) BEFORE INCOME TAXES |
|
| (2,023,274 | ) |
INCOME TAX (EXPENSE) BENEFIT |
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| (427,000 | ) |
NET INCOME (LOSS) |
| $ | (2,450,274 | ) |
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|
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NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS |
|
| 183,771 |
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NET INCOME (LOSS) ATTRIBUTABLE TO HMDT |
| $ | (2,266,503 | ) |
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EBITDA ADJUSTMENTS |
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Depreciation and amortization |
|
| 593,015 |
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Impairment of goodwill and intangible assets |
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| 2,707,732 |
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Other income (expense) |
|
| (670,380 | ) |
Income tax |
|
| 427,000 |
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1847 Partners management fees |
|
| 166,667 |
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1847 Holdings shared services - BOD fees allocation |
|
| 84,744 |
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1847 Holdings shared services - payroll allocation |
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| 893,971 |
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1847 Holdings shared services - insurance allocation |
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| 197,432 |
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1847 Holdings shared services - other |
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| 650,288 |
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TOTAL EBITDA ADJUSTMENTS |
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| 5,050,469 |
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TOTAL EBITDA |
| $ | 2,600,195 |
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TOTAL EBITDA ATTRIBUTABLE TO 1847 HOLDINGS |
| $ | 2,783,966 |
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About 1847 Holdings LLC
1847 Holdings LLC (NYSE American: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 deploy resources to strengthen the infrastructure and systems of those businesses in order 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. For more information, visit www.1847holdings.com.
For the latest insights, follow 1847 on Twitter.
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.
EBITDA and Adjusted EBITDA
The Company reported Adjusted EBITDA of
Contact:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: EFSH@crescendo-ir.com
SOURCE: 1847 Holdings LLC
View the original press release on accesswire.com