Form 8-K - Current report

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

CURRENT REPORT

 

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 19, 2024

 

1847 Holdings LLC

(Exact name of registrant as specified in its charter)

 

Delaware		001-41368		38-3922937
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

590 Madison Avenue, 21st Floor, New York, NY		10022
(Address of principal executive offices)		(Zip Code)

 

[phone]

(Registrant's telephone number, including area code)

 

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Shares		EFSH		NYSE American LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

 

Emerging Growth Company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

Item 2.02

Results of Operations and Financial Condition.

 

On August 19, 2024, 1847 Holdings LLC issued a press release regarding its financial results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report.

 

The information furnished with this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

 

Item 9.01

Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No.		Description of Exhibit
99.1		Press Release issued on August 19, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

  

Date: August 19, 2024	1847 HOLDINGS LLC
	/s/ Ellery W. Roberts
	Name:	Ellery W. Roberts
	Title:	Chief Executive Officer

 

 

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Exhibit 99.1

 

 

1847 Reports Second Quarter 2024 Financial Results and Provides Business Update

 

Achieves Approximately 4% Sequential Increase in Revenue for Q2 2024 Compared to Q1 2024

 

Gross profit was $6.7M in Q2 2024 compared to $5.9M in Q2 2023, a 14.2% year-over-year increase

 

NEW YORK, NY / ACCESSWIRE / August 19, 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 second quarter ended June 30, 2024.

 

Mr. Ellery W. Roberts, CEO of 1847 Holdings, commented, “In Q2 2024, we achieved approximately 4% sequential revenue growth and a 14.2% year-over-year increase in gross profit, highlighting our effective efforts to optimize operations and improve cost efficiencies. As part of our ongoing strategy to strengthen the balance sheet, we recently eliminated $4.2 million of debt through the sale of ICU Eyewear, significantly enhancing our financial position. After we acquired ICU Eyewear, we were able to clean up the books, reinforce the infrastructure, and enhance the value of assets before strategically selling it in collaboration with our senior lender, demonstrating our successful private equity model. This transaction not only underscores our commitment to maintaining a robust financial foundation but also aligns with our long-term strategy of maximizing shareholder value. We remain dedicated to leveraging our strengths and exploring opportunities that will contribute to the long-term success and stability of our Company.”

 

“Our strategy remains centered on acquiring companies that provide value and generate positive cash flow, all while minimizing shareholder dilution. We believe we have a robust acquisition pipeline and are making significant progress on several potentially transformative strategic transactions. Notably, we are working to finalize a definitive agreement to acquire a leading manufacturer of millwork, cabinetry, and doors, which reported $28.6 million in revenue and substantial cash flow in 2023. We believe this acquisition represents 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.”

 

“Additionally, we are advancing with the sale of a division of 1847 Cabinets Inc., which we anticipate closing by mid-September 2024. This proposed sale marks a strategic milestone for 1847, demonstrating our ability to acquire, operate, and enhance the value of assets before divesting them. We believe this transaction will substantially strengthen our financial position, allowing us to strategically reallocate resources and capitalize on emerging opportunities both within and beyond our portfolio, with a long-term focus on maximizing shareholder value,” concluded Mr. Roberts.

 

 

 

 

Q2 2024 Financial Highlights

 

Total revenues were $15,501,359 for the three months ended June 30, 2024, as compared to $17,362,093 for the three months ended June 30, 2023.

 

●

Revenues from the retail and eyewear segment decreased by $1,417,160, or 31.5%, to $3,076,901 for the three months ended June 30, 2024 from $4,494,061 for the three months ended June 30, 2023.

 

●

Revenues from the construction segment decreased by $182,524, or 1.6%, to $11,321,371 for the three months ended June 30, 2024 from $11,503,895 for the three months ended June 30, 2023.

 

●

Revenues from the automotive supplies segment decreased by $261,050, or 19.1%, to $1,103,087 for the three months ended June 30, 2024 from $1,364,137 for the three months ended June 30, 2023.

 

Total cost of revenues was $8,757,513 for the three months ended June 30, 2024, as compared to $11,456,303 for the three months ended June 30, 2023.

 

●

Cost of revenues for the retail and eyewear segment decreased by $2,008,943, or 58.6%, to $1,421,597 for the three months ended June 30, 2024 from $3,430,540 for the three months ended June 30, 2023.

 

●

Cost of revenues for the construction segment decreased by $589,226, or 8.2%, to $6,611,425 for the three months ended June 30, 2024 from $7,200,651 for the three months ended June 30, 2023.

 

●

Cost of revenues for the automotive supplies segment decreased by $100,621, or 12.2%, to $724,491 for the three months ended June 30, 2024 from $825,112 for the three months ended June 30, 2023.

 

Total general and administrative expenses were $2,395,880 for the three months ended June 30, 2024, as compared to $2,350,155 for the three months ended June 30, 2023.

 

Total professional fees were $1,847,073 for the three months ended June 30, 2024, as compared to $485,901 for the three months ended June 30, 2023.

 

Total operating expenses were $18,045,802 for the three months ended June 30, 2024, as compared to $17,807,363 for the three months ended June 30, 2023, resulting in a loss from operations of $2,544,443 for the three months ended June 30, 2024, as compared to a loss from operations of $445,270 for the three months ended June 30, 2023.

 

Net loss from continuing operations was $4,906,812 for the three months ended June 30, 2024, as compared to a net loss of $3,361,797 for the three months ended June 30, 2023. Such change was primarily due to an increase of amortization of debt discounts by $2,145,775, an increase in loss on extinguishment of debt by $778,875, and an increase in loss on change in fair value of derivative liabilities of $1,290,563.

 

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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.

 

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.

 

Contact:

 

Crescendo Communications, LLC
Tel: [phone]
Email: [e-mail]

 

 

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Cover	Aug. 19, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 19, 2024
Entity File Number	001-41368
Entity Registrant Name	1847 Holdings LLC
Entity Central Index Key	0001599407
Entity Tax Identification Number	38-3922937
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	590 Madison Avenue
Entity Address, Address Line Two	21st Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10022
City Area Code	(212)
Local Phone Number	417-9800
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Shares
Trading Symbol	EFSH
Security Exchange Name	NYSEAMER
Entity Emerging Growth Company	false

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