1847 Goedeker Inc. Announces Fourth Quarter and Full Year Fiscal 2021 Results (3/31/22)
BROOKLYN, N.Y.--(BUSINESS WIRE)--1847 Goedeker Inc. (NYSE American: GOED) ("Goedeker" or the "Company"), a content driven and technology enabled shopping destination for appliances, furniture and home goods in the U.S. household appliances market, today reported financial results, including GAAP and pro forma financial results, for the fourth quarter and full-year ended December 31, 2021. As previously disclosed, the Company completed the acquisition of 1 Stop Electronics Center, Inc., Gold Coast Appliances, Inc., Superior Deals Inc., Joe’s Appliances LLC, and YF Logistics LLC (collectively, “Appliances Connection”) in June 2021.
GAAP Financial Highlights
FOURTH QUARTER
Net sales were $142.7 million, compared to $16.7 million for the fourth quarter 2020. Gross profit was $32.6 million (23% margin), compared to $0.9 million for the fourth quarter 2020. Net income was $3.8 million compared to a loss of $9.7 million for the fourth quarter 2020.
FULL YEAR
Net sales were $362.3 million, compared to $55.1 million for 2020. Gross profit was $79.6 million, compared to $7.3 million for 2020. Net income was $7.7 million compared to a net loss of $21.6 million for 2020. Cash and cash equivalents were $25.7 million as of December 31, 2021, excluding $8.1 million in restricted cash. Pro forma Financial Highlights1
FOURTH QUARTER
Net sales were $142.7 million, compared to pro forma net sales of $107.9 million for the fourth quarter 2020. Gross profit was $32.6 million (23% margin), compared to pro forma gross profit of $20.2 million (18.8% margin) for the fourth quarter 2020. Net income was $3.8 million, or $0.03 per diluted common share, compared to a pro forma loss of $6.9 million, or -$0.07 per diluted common share, for the fourth quarter 2020. Adjusted EBITDA was $11.3 million (8% margin). FULL YEAR
Pro forma net sales were $541.7 million, compared to pro forma net sales of $370.1 million for 2020. Pro forma gross profit was $126.0 million (23.3% margin), compared to pro forma gross profit of $73.0 million (19.7% margin) for 2020. Pro forma net income was $28 million, or $0.17 per diluted common share, compared to a net loss of $11.2 million, or -$0.11 per diluted common share, for 2020. Pro forma adjusted EBITDA was $48.7 million (9.0% margin). Business and Strategy Highlights
Albert Fouerti, Chief Executive Officer and Director, commented:
“The past year was a period of significant change and transformation – one that was compounded by a lingering pandemic and persistent supply chain issues. Amidst this difficult backdrop, I am pleased that we were still able achieve significant growth and maintain strong margins. We did this while also starting to rebuild our leadership team, improve technology, strengthen supply chain and logistics capabilities, and overhaul other business and finance areas. We will continue to pursue profitable growth in the year ahead while looking for ways to optimize our infrastructure, talent and capital structure. I believe 2022 will be an important stepping stone on the road to long-term growth and our long-term goal to achieve a billion dollars in annual sales.”
In recent months, the Company has made progress against the priorities outlined by new management:
Strengthening the Company’s Leadership Team – We have made several c-level and senior hires while phasing out individuals with redundant or inapplicable skills more aligned to the legacy Goedeker business. The Company has added new executives with decades of experience in supply chain, distribution and logistics, ecommerce and marketing that are aligned with its mission and long-term vision. Moving forward, recruiting top-tier talent at all levels remains a major priority. Establishing Deeper Connectivity with Customers – We created even deeper relationships with our customers throughout the last fiscal year. We experienced more than 30 million annual website visits compared to 10 million site visits in 2020, made more than 450,000 white glove deliveries and now have more than 670,000 product reviews and expert how-to’s on our website. This resulted in a 53% customer retention rate, a figure management intends to build on. Refining Fulfillment Network Expansion – We made progress in the early stages of our fulfillment network expansion. We have identified the geographic areas we want to be in to get closer to the customer and further penetrate markets that are experiencing the highest levels of housing development and home remodeling. Although we currently are holding off on entering into agreements due to inventory and supply chain issues, we expect to add at least two new fulfillment centers over the next year. Management expects these additions to support long-term growth without margin degradation. Advancing the Rebrand – The Company has completed significant work with its branding partner, and is on track to announce a new name and brand ethos in the first half of this fiscal year. These will align with our vision to become a home and appliances platform that empowers customers throughout the entire purchasing journey – from inspiration to installation. We are in the process of enhancing the content and resources available on our site that will ultimately help us create more meaningful relationships with customers. Laying the Foundation for B2B Growth – We currently have $20 million of new business-to-business projects in the pipeline as of the first quarter of 2022 and are working to build on this pipeline throughout the remainder of the year. We expect that these will be longer term projects that may take 6-18 months to come to fruition, but we believe this pipeline will materialize into more significant revenue growth over time. Outlook
Management’s outlook for Fiscal 2022 includes high teens to low 20s sales growth with gross margins and adjusted EBITDA margins relatively flat to our 2021 actual results. Management expects that the combination of sustained supply chain disruptions, significant inflation and geopolitical uncertainty will impact the Company and its customer base in the coming quarters. This expectation has informed the Company’s Fiscal 2022 outlook.
Investor Conference Call
The Company will host an investor conference call at 8:00 a.m. ET today to review its results. The phone number for the investor conference call is 1-844-881-0136 (toll-free) or 1-412-902-6507 (international); please ask to join the Goedeker Q4 2021 Earnings Call. The investor presentation for the call can be accessed on our investor relations site at http://investor.goedekers.com.
About Goedeker
Goedeker is a content-driven and technology-enabled shopping destination for appliances, furniture and home goods. Since its acquisition of Appliances Connection, Goedeker has evolved into a growth-oriented ecommerce platform with a distinct offering of core, premium, luxury and private label brands that can be accessed through a convenient point-and-click experience. The Company's priorities include offering an expansive selection, high-touch product expertise and reliable shipping from its expanding, nationwide fulfillment network. Learn more at www.Goedekers.com.
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