1847 Holdings LLC: 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

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 $17 million, more than double the original purchase price.

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 $17 million further highlights the significant disparity between the market valuation of 1847 and the true value of our portfolio, underscoring 1847 as a compelling investment opportunity."

For the trailing twelve months ended September 30, 2024, HMDT recorded preliminary unaudited revenue of approximately $30.0 million, net loss of approximately $2.3 million and Adjusted EBITDA of approximately $2.8 million (see reconciliation to GAAP below).

		TTM
		12-Months
		9/30/2024
		HMDT
Revenues		$	30,017,547
Operating Expenses
Cost of revenues			18,837,167
Personnel			6,104,582
Depreciation and amortization			593,015
General and administrative			4,288,793
Professional fees			179,912
Impairment of goodwill and intangible assets			2,707,732
Total Operating Expenses			32,711,201
INCOME (LOSS) FROM OPERATIONS			(2,693,654	)
Other Income (Expenses)
Other income (expense)			1,290,275
Interest expense			(521,519	)
Amortization of debt discounts			(84,561	)
Gain (loss) on disposal of property and equipment			(13,815	)
Total Other Income (Expenses)			670,380
NET INCOME (LOSS) BEFORE INCOME TAXES			(2,023,274	)
INCOME TAX (EXPENSE) BENEFIT			(427,000	)
NET INCOME (LOSS)		$	(2,450,274	)
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS			183,771
NET INCOME (LOSS) ATTRIBUTABLE TO HMDT		$	(2,266,503	)
EBITDA ADJUSTMENTS
Depreciation and amortization			593,015
Impairment of goodwill and intangible assets			2,707,732
Other income (expense)			(670,380	)
Income tax			427,000
1847 Partners management fees			166,667
1847 Holdings shared services - BOD fees allocation			84,744
1847 Holdings shared services - payroll allocation			893,971
1847 Holdings shared services - insurance allocation			197,432
1847 Holdings shared services - other			650,288
TOTAL EBITDA ADJUSTMENTS			5,050,469
TOTAL EBITDA		$	2,600,195
TOTAL EBITDA ATTRIBUTABLE TO 1847 HOLDINGS		$	2,783,966

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.

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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 $2.8 million for the trailing twelve months ended Q3 2024. The Company defines EBITDA as earnings before interest, taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA before impairment of good will and intangible assets, other interest (expense), management fees, and shared services as described in the table above. Both EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), and should not be considered in isolation of, or as a substitute for, earnings as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. The Company believes the presentation of EBITDA and Adjusted EBITDA is relevant and useful by enhancing the readers' ability to understand the Company's operating performance. The Company's management utilizes EBITDA as means to measure performance. The Company's measurements of EBITDA and Adjusted EBITDA may not be comparable to similar titled measures reported by other companies. The table above in the press release reconciles Adjusted EBITDA, a non-GAAP measure, to GAAP numbers for net loss.

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SOURCE: 1847 Holdings LLC

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