Polished.com Inc. · OTC:POLCQ
Polished.com — 1847 Goedeker — IPO Roadshow (May 2021)
24 slides from Polished.com's IPO roadshow presentation, May 13, 2021
Slide 1: Investor Presentation May 2021
Investor Presentation May 2021 1
Slide 2: Free Writing Prospectus
Free Writing Prospectus We have filed a registration statement (including a preliminary prospectus) with the SEC for the offering to which this communication relates . The registration statement has not yet become effective . Before you invest, you should read the preliminary prospectus in that regi
Slide 3: Disclaimer: Forward Looking Statements
Disclaimer Forward Looking Statements 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 historical facts are forward - looking . These statements re
Slide 4: Offering Summary
Offering Summary Iss u e r Ticker / Exchange Securities Offered Offering Size 1847 Goedeker Inc. NYSE American / GOED Common Stock $205 million (100% primary) Use of Proceeds Lock - up Period Sole Book - R unner For payment of cash portion of the purchase price for the proposed acquisition. Any rema
Slide 5: Mission and Strategy
Mission Our mission is to change the way people buy appliances Strategy • Relentless focus on customer experience • Wide selection across easy to navigate websites • Expert - staffed call centers to guide customer journey • Efficient fulfillment platforms • Competitive pricing • Purpose - built, dat
Slide 6: Industry Leading Product Assortment
Industry Leading Product Assortment Over 51,000 SKUs, leveraging tight vendor relationships Outdoor C o mme r ci a l C o o king Dishwashers Air Conditioning Refrigeration Lau n d ry 6
Slide 7: Brand Expansion to Satisfy the Needs of Any Customer
Brand Expansion to Satisfy the Needs of Any Customer (Core, Premium, Luxury) Select Goedeker Brands Acquisition of Appliances Connection Adds Key Premium Brands Appliances Connection listed #1 on USA Today’s “Top 7 Places to Buy Appliances Online” 7
Slide 8: Key Operating Metrics – Pro-Forma Combined Entity
Key Operating Metrics – Pro - Forma Combined Entity of Goedeker and Appliances Connection F Y 202 0 O r d e r s $590.1M 87.9%+YoY F Y 202 0 R e v e nu e * $367.7M 34.8%+YoY FY 2020 Adj. EBITDA $14.4M 3 . 9 % A d j . EB I T D A Margin Q1 2021 Orders $199.3.0M 105 % + Y o Y Q1 2021 Revenue $123.0M 84
Slide 9: Secular Shift in the Industry
Secular Shift in the Industry Billions in Revenue is Shifting Online Large, Addressable Market Growing Each Year • According to Statista, revenue in U.S. household major appliances market (excluding small appliances) is projected to reach $22. 5 billion in 2021 Tailwind from Millennials Beginning to
Slide 10: Household Appliances is a $21BN Online Market
Household Appliances is a $21BN Online Market • 5,000+ store fronts • Assortment focuses on Core, very limited selection; discount - driven • No Luxury assortment available • 2,000+ store fronts • Focus on Core brands with some Premium offerings • 3 major storefronts (Appliances Connection, Goedeker
Slide 11: Digital Economy is Transforming Appliance Buying
Digital Economy is Transforming Appliance Buying (1) Salesforce 360, 9 Stats About the Retail Customer Journey in 2019, 4/12/19. (2) Mintel Survey, Major Household Appliances, 4/4/21. 8 7 % 55 % of shoppers begin their hunt in digital channels (1) of consumers compare appliance prices online (2) 11
Slide 12: Our Direct-to-Consumer Foundation and Strong Digital Platform
Our Direct - to - Consumer Foundation and Strong Digital Platform • Simple & easy online shopping experience • Ease of navigation through diverse product range • Stress free order - by - phone convenience • Sales representatives on stand - by to assist customer needs • Talking to people before and a
Slide 13: Broader Inventory and Assortment Compared with Competitors
L UXUR Y PREMIU M Carries Top 10 Brands in Each Categories Many are 3rd Party Sellers, not Brand - sponsored or approved products Limited In - Store Selection Per Brand C ORE We Offer More Inventory and a Wider Assortment of Categories Compared with Competitors 13
Slide 14: Regional Appliance Retailers vs. Online Scalability
Regional Appliance Retailers High Growth Superior Customer Service Efficient Supply Chain E - commerce Centered Brand/Product Selection Scalable Marketing Strategy Well Positioned for Online Scalability 14
Slide 15: ACG Fulfillment Model Today
ACG Fulfillment Model Today ACG Fulfillment Capabilities • Asset light model optimizes operational capabilities • Expanded cross - docking capabilities improve order - to - shipment times • Speed of delivery drives conversion, retention and reduced costs • Control over delivery times enables seamles
Slide 16: Growth Strategies – Combined Goedeker and Appliances Connection
• Continue to improve customer acquisition efficiency through data - driven targeting and differentiated digital engagement • Deepen vendor relationships to obtain widespread favored partner status and pricing, improving product selection and availability • Optimize supply chain and fulfillment cent
Slide 17: Q1 2021 Financial Highlights
Q1 2021 Financial Highlights ( in millions) Orders $30.7 $168.6 $199.3 Fill rate 44.6% 64.8% 61.7% Revenue $13.7 $109.3 $123.0 Gross profit $2.6 $29.5 $32.2 Gross profit margin 19.0% 27.0% 26.2% Operating income (loss) ($3.3) $17.5 $14.2 Net income (loss) ($3.5) $19.5 $13.0 2 Adjusted EBITDA ($3.1)
Slide 18: Growth in Orders and Revenues
$367. 7 $590 . 1 $55. 1 $312. 6 $123 . 2 $466 . 9 Growth in Orders and Revenues 2019 - 2020 Current Goedeker and Appliances Connection Revenues and Orders 2020 ACG Combined Revenues and Orders in Millions for the Period January 1 – December 31 in Millions for the Period January 1 – December 31 2019
Slide 19: Select E-Commerce Industry Public Comparables
Select E - Commerce Industry Public Comparables Company (Ticker) Market Cap 1 Enterprise Value 1 1Q2021 Revenue 1Q2021 Adj. EBITDA 2 2020 Revenue 2020 Adj. EBITDA 2 2020 EV /Adj. EBITDA 2020 EV / Revenue (figures in millions, except for multiples) Wayfair Inc. (NYSE: W) $33,962 $35,249 $3,478 $206 $
Slide 20: Capitalization
Capitalization Common shares outstanding 1 6,111,200 Common shares to be issued for the acquisition of Appliances Connection 2 2,333,333 $21 million of common shares 1 Excluding 555,000 options at an exercise price of $9.00 per share and 455,560 warrants at a weighted average exercise price o f $11.
Slide 21: Key Investment Highlights
Distinguished Pure Play Appliance - Focused Online Platform Within a Fragmented Marketplace Consistent Positive Customer Experience Highly Productive Customer Representatives with Extensive Product Knowledge Accessible Through Website, Phone and Chat Native to Digital. Vertically Integrated. Capital
Slide 22: Appendix
APPLIANCE A CONNECTION GROUP y Appendix
Slide 23: FY 2020 Adjusted EBITDA Reconciliation
FY 2020 Adjusted EBITDA Reconciliation Operating (Loss) Income $19 .4 ( $1 4 . 4) $5 .0 % of Sales 6 . 2% ( 2 6 . 2 % ) 1 . 4% Other income (expense) Interest income $ 1 . 0 $ 0 . 0 ( $ 1 . 0) $ 0 . 0 Financing costs $ 0 . 0 ( $ 0 . 8) - ( $ 0 . 8) Interest expense ( $ 0 . 7) ( $ 0 . 9) ( $ 3 . 9) (
Slide 24: Q1 2021 Adjusted EBITDA Reconciliation
Q1 2021 Adjusted EBITDA Reconciliation Operating (Loss) Income $ 17.5 ( $ 3.3 ) $14.2 % of Sales 1 6 . 0 % ( 24.0 %) 1 1.6 % Other income (expense) Interest income $0.2 $ 0.0 $(0.2) $ 0 . 0 Financing costs - - - - Interest expense $(0.2) $(0.2) $ ( 1.0 ) $ ( 1.4) Loss on extinguishment of debt - - -