First Quarter In The Bag: A Look At All The Milestones 1847 Holdings Hit So Far This Year

NEW YORK, NY / ACCESSWIRE / April 18, 2024 / When it comes to deal-making, capital raises and share buying, 1847 Holdings LLC (AMEX:EFSH) had a busy first quarter of 2024. The New York City publicly traded diversified acquisition holding company is making a name for itself, acquiring small businesses and then deploying resources to strengthen the enterprise and improve operations, with an eye toward spinning them out or growing them internally. All of 1847's hard work is paying off, with the PE firm making a lot of moves that position it for growth this year and beyond.

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Take its moves to shore up capital during the first three months of the year, for starters. 1847 kicked off the quarter by securing a $750,000 credit facility for its Wolo Manufacturing Corp. unit, which makes vehicle horns and safety products for cars, trucks, industrial equipment and emergency vehicles. The money went to fulfill orders amid stronger-than-expected demand, strengthen Wolo's liquidity and give it increased financial flexibility, said 1847 CEO Ellery Roberts. "With this enhanced credit capacity, combined with growing customer demand and easing of supply-chain pressure, Wolo has the potential to increase its sales by 50% to 70% year-over-year in 2024," Roberts said. It's already on the road to that. In the first two months of 2024, Wolo's reporting revenue increased 40% year-over-year in both January and February. 1847 also secured a $1 million credit facility for its High Mountain Door & Trim Inc. ("High Mountain") subsidiary, underscoring its focus on growing its portfolio companies.

Then there's the closing of its previously announced public offering of securities in late February, raising $5 million in gross proceeds. The public offering, handled by Spartan Capital Securities, gives 1847 more firepower to make buys and invest in its businesses.

Reigning In Expenses, Debt

Shoring up capital isn't the only way 1847 improved operations during the first quarter. It's also paying off debt and cutting expenses including by divesting 1847 Asien Inc. The unit provides a wide variety of appliance services. By letting go of that asset, 1847 Holdings said it reduces expenses by around $10.9 million a year and should positively impact margins. The divestment also reduces total liabilities by about $4.5 million. The PE firm was also able to pay off $1.95 million in debt, which Roberts said removes a potential equity overhang.