Polished.com Inc. · OTC:POLCQ
Polished.com — 1847 Goedeker — Q2 2021 Earnings Presentation
33 slides from Polished.com's earnings presentation, Aug 12, 2021
Slide 1: 1847 Goedeker Inc. Investor Presentation Q2 2021
1847 Goedeker Inc. (NYSE American: GOED) Investor Presentation Q2 2021
Slide 2: Safe Harbor Forward Looking Statements
2 Investor Presentation | August 2021 Safe Harbor F orw ar d L ook i n g St a t e m e n t s This presentation contains forward - looking statements that are based on our management’s beliefs and assumptions and on information currently available to us . All statements other than statements of histor
Slide 3: Contents
Contents Section 1 Q2 Highlights Section 2 Market Opportunity & Competitive Positioning Section 3 Aligned & Experienced Leadership Appendix Consolidated Financial Results
Slide 4: Q2 Highlights
Q2 Highlights
Slide 5: Acquisition of Appliances Connection transformed Goedekers into largest pure ecommerce appliance company
The acquisition of Appliances Connection has transformed Goedekers into the largest pure ecommerce company in the rapidly growing U.S. home appliance market, with more than 57,000 SKUs and an expanding, nationwide fulfillment network. We have a clear six - point strategy for achieving scale and mark
Slide 6: Q2 Financial Highlights
Q2 Financial Highlights $ 33.3M C o m bi ne d P rof o r ma Gross Profit Record Gross Profit $15.2M C o m bi ne d Pr ofo rm a Adj. EBITDA 10.8% C o m bin e d P r ofo rm a Adj. EBITDA Margin Record Adj. EBITDA ( ¹ ) $53.6M Combined Cash and Restricted Cash Strong Cash Position Sizable Revenue Investor
Slide 7: Q2 Operational Highlights
Q2 Operational Highlights We focused on continuing to build a clear value proposition that attracts and retains customers: Wider Selection • Leveraged long - standing and new vendor and supplier relationships to reach more than 57 , 000 SKUs • Curated diverse assortments of primary and secondary pro
Slide 8: Q2 Operational Highlights (Cont.)
Q2 Operational Highlights (Cont.) We focused on integrating Appliances Connection and positioning the combined organization to scale: New Talent Integration • Albert Fouerti joined as President after building Appliances Connection into an ecommerce powerhouse • Elie Fouerti joined as Vice President
Slide 9: Initiated a Strategic, Unified Rebranding Process
Initiated a Strategic, Unified Rebranding Process • As the largest pure online retailer of household appliances in the U . S . , it is essential that our newly - combined entity has a clear brand and identity that resonates with customers • We are working with an experienced branding and marketing f
Slide 10: Announced Appliance Gallery Acquisition
Announced Appliance Gallery Acquisition • Go e dek e r s r e ce n tl y acquired A p p li a nce G a ll e ry , a highly regarded Florida - based luxury appliance retailer • In addition to helping us access more premium and luxury brands, the transaction gives us a strategic foothold in the southeast a
Slide 11: Our Market Opportunity & Competitive Positioning
Our Market Opportunity & Competitive Positioning
Slide 12: Household Appliances is a Rapidly Growing Market
Household Appliances is a Rapidly Growing Market Source: Statista; Mordor Intelligence: United States Major Home Appliances Market - Growth, Trends, Covid - 19 Impact, And Forecasts (2021 - 2026) . Major Household Appliances Market Revenue in the U.S. from 2012 to 2026 (in billion U.S. dollars) Inve
Slide 13: Consumers are Increasingly Embracing Online Channels
Consumers are Increasingly Embracing Online Channels 13% 0% 10% 20% x Dig i t a l l y - Savv y M il l en n i als a r e E n t e r i ng t h e Category due to the COVID - 19 Pandemic • There has been a sharp increase in the formation of new households during the pandemic – this is a trend we expect to
Slide 14: Consumers May Make More Appliance Purchases Online Post-Pandemic
Data Suggests Consumers May Make More Household Appliance Purchases Online Post - Pandemic Goedekers is in a position to harness this substantial behavioral shift toward online shopping 30% expected growth in consumers purchasing appliances online post - pandemic Investor Presentation | August 2021
Slide 15: Fragmentation Across Categories Expands Our Opportunity Set
The Significant Fragmentation Across Categories Expands Our Opportunity Set Goedekers is the only household appliances retailer that specializes in the Core, Premium and Luxury categories – other retailers are more focused on selling Core appliances î 5 , 000 + s t or e f ron t s î Assortment focuse
Slide 16: Our Competitive Positioning: Distinct Value Proposition vs. Peers
Goedekers Regional Retailers M as s M a r k et Resellers Wayfair M as s M a r k et Resellers Amazon Big Box Best Buy, The Home Depot, Lowe’s Carries brands across all categories: Core, Premium and Luxury High Growth Business Expert - Level Customer Service Efficient Supply Chain Ecommerce Centered B
Slide 17: Our Competitive Positioning: Distinct Direct-to-Customer Model
Our Competitive Positioning: Distinct Direct - to - Customer Model Frictionless Website • S i mple onlin e st o r e with deep selection, competitive prices • Responsive design for mobile and tablet experiences • Real - time customer insights and analytics Expert Customer Service • Stress - free o r
Slide 18: We Are Taking Steps to Strengthen Our Positioning
We Are Taking Steps to Strengthen Our Positioning Leveraging Increased Scale to Secure Improved Vendor and Supplier Terms Renegotiate contracts with vendor network to provide for more favorable terms, including improved payment terms Post - acquisition, the Company is sourcing more product and maint
Slide 19: We Are Taking Steps to Strengthen Our Positioning (Cont.)
We Are Taking Steps to Strengthen Our Positioning (Cont.) Identifying New Ways to Attract Customers and Build Long - Term Loyalty Remove sales friction by offering competitive financing plans to customers Increase data - driven targeting and differentiated digital engagement to augment existing cust
Slide 20: Our Aligned Leadership
Our Aligned Leadership
Slide 21: Aligned Leadership Collectively Holds ~9% of Goedeker Stock
Aligned Leadership Collectively Holds ~9% of Goedeker Stock Investor Presentation | August 2021 21 Executive or Director Common Stock Ownership* Doug Moore, CEO and Director 29,297 Albert Fouerti, President and Director (1) 2,947,986 Maria Johnson, CFO 0 Robert D. Barry, CAO (2) 35,199 Thomas S. Har
Slide 22: Establishing a Culture of Incentivization
Establishing a Culture of Incentivization We have retained a leading, independent compensation consultant to support a number of important initiatives, including: Creating a Short - Term Incentive Plan • Collect peer data on performance metric selection, weightings, performance - based payout slopes
Slide 23: Proven Management: Doug Moore
Proven Management Doug Moore CEO & Director (joined 2019) and online sales strategies Investor Presentation | August 2021 23 Strong Skillset Strong C - Level Background x More than 25 years of retail sector operations experience x Former EVP and Chief Merchandising Officer for Circuit City during gr
Slide 24: Proven Management: Albert Fouerti
Proven Management Albert Fouerti President & Director (joined 2021) Strong Skillset Strong Leadership Background x More than 20 years of retail operations and ecommerce experience x Currently President of 1847 Goedekers x Deep expertise in merchandising, product sourcing, fulfillment and pricing str
Slide 25: Board Possesses Strong Brand, Retail and Financial Experience
Board Possesses Strong Brand, Retail and Financial Experience Chair Ellery W. Roberts Governance and financial expert with over 20 years of private equity investing experience in growth markets and significant public board experience Douglas T. Moore Proven c - level retail executive with 25 years o
Slide 26: Board has Diversity, Expertise and Ownership Perspectives
Board has Diversity, Expertise and Ownership Perspectives Director R eta i l E xper i e n ce Operational Experience Ecommerce Experience E xe cu t i ve E xper i e n ce Meaningful Stock Ownership Ellery W. Roberts El le t t e A. A nd e rs o n Clark R. Crosnoe Albert Fouerti Paul A. Froning Glyn C. Mi
Slide 27: Appendix
Ap p endix
Slide 28: Appendix: Balance Sheet
Appendix: Balance Sheet Investor Presentation | August 2021 28
Slide 29: Appendix: Income Statement
Appendix: Income Statement Investor Presentation | August 2021 29
Slide 30: Appendix: Cash Flows
Appendix: Cash Flows Investor Presentation | August 2021 30
Slide 31: Appendix: Cash Flows (Cont.)
Appendix: Cash Flows (Cont.) Investor Presentation | August 2021 31
Slide 32: Appendix: EBITDA Reconciliation
Appendix: EBITDA Reconciliation Investor Presentation | August 2021 32 This presentation includes certain “non - GAAP” financial measures, including adjusted EBITDA . A non - GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flow that exclu
Slide 33: Appendix: EBITDA Reconciliation (Cont.)
Appendix: EBITDA Reconciliation (Cont.) Investor Presentation | August 2021 33 For the Three Months Ended June 30, 2021 For the Six Months Ended June 30, 2021 N E T I N C O M E $ 17.3 $ 32.9 ADJUSTMENTS Income taxes (7.3) (5.6) Interest expense 1.0 1.5 Financing costs 0.1 0.1 Depreciation and amorti