![]() Given these figures would translate to a $60-80m run-rate, investors have much reason for optimism. Given they generated $14.7m of pro-forma EBITDA in Q1, Q2 has the potential to approach $20m of combined EBITDA. Written orders also decelerated from $82.9m to $72.6m, suggesting some pent-up demand is being alleviated.īoth months were stronger than the pro-forma Q1 results ($41m of revenue and $66.4m written orders per month, on average). The revenue number was down slightly from the $45.2m in April, but still strong. They also presented some optimistic statistics, suggesting the US appliance market is expected to grow above a 13% CAGR for the next 5 years. In their first press release since the merger was closed, GOED highlighted a record month of combined revenues for the businesses in May of $44.3m ($530m annual run rate). Shares have since rallied over $3, but the question remains if there is still any upside for new investors. The combined weight absolutely crushed the stock and sent it under $2. After a wild 24 hours of trading, the offering was priced at $2.25 per share, GOED assumed an additional $70m in debt, and each share included a $2.25 warrant. In early May, 1847 Goedeker filed they were doing a $205m equity offering to fund the acquisition. The deal was announced in Oct-20, which hung around in the background with significant unknowns due to the significant scale of Appliance Connection in comparison to GOED ($219m revenue in FY19, $313m revenue in FY20). The business did about $50m of revenue in the past few years and posted significant operating losses, making it a rather speculative investment. Prior to the recent merger, GOED was a small appliance e-commerce appliance retailer that had spun off from 1847 Holdings ( OTCQB:EFSH). Given shares have traded under $2 and over $15 in the past 60 days, this situation seems loaded with opportunity for discerning investors. For investors looking for a complicated special situation event, look no further than the recent merger of 1847 Goedeker (NYSE: GOED) and Appliance Connection.
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