Polished.com Inc. · OTC:POLCQ
Polished.com — 1847 Goedeker — Merger or Acquisition (November 2020)
20 slides from Polished.com's merger presentation, Nov 24, 2020
Slide 1: Goedeker to Acquire Appliances Connection
to Acquire Creating One of the Fastest Growing and Largest Online Appliance Retailers NOVEMBER 2020 G OED LISTED
Slide 2: Forward-Looking Statements
F o r w ar d p. 2 G O E D Lookin g S t 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 historical facts are forward - looking . Th
Slide 3: Goedeker to Acquire Appliances Connection
$37.8 Million in Forecast GOED 2021 EBITDA 10x Increase in GOED Forecast 2021 Revenues OV E RV IEW A N D E X PE C T ED B E N E F I TS p. 3 G O E D Goedeker to Acquire Appliances Connection 1. 10x Revenue Growth to $550 M with $37.8 M in EBITDA forecast for GOED in 2021 2. Strong Online Appliance Sal
Slide 4: Expected Growth in Orders and Revenues
Expected Growth in Orders and Revenues $47.6 $225.1 $56.0 $306.8 $362.8 $61.8 $281.4 $129.1 $460.5 $589.6 2019 A 109 % 18 % 2020 E 64 % 36 % 5x 6x 2020 ESTIMATED GOED COMBINED REVENUES and ORDERS 2020 in Millions for the Period Jan. 1 – Dec. 31 p. 4 G O E D 2019 - 2020 CURRENT GOEDEKER and APPLIANCE
Slide 5: Organic Growth Accelerates Post-Acquisition
Organic Growth Accelerates Post - Acquisition AC C RE TIVE RE S U LTS $167 . 7 $389 . 1 $55 0. 0 $237 . 0 $500 . 0 $737 . 0 Goedeker COMBINED REVENUES Goedeker COMBINED ORDERS 2021 Forecast POST - ACQUISITION COMBINED REVENUES AND ORDERS In Millions for the Period Ended December 31 Post - Acquisitio
Slide 6: Online Appliances Sales Soar
Online Appliances Sales Soar p. 6 G O E D US household appliance market is growing at $13.7% CAGR and EXPECTED TO REACH $38B BY 2025 Source: Statista, 2020 80% + of CONSUMERS research and compare appliances online. Source: Consumer Reports, December 2019 ST RO N G M A R K E T T R E N D S 44% OF ALL
Slide 7: Brick and Mortar Challenges
Brick and Mortar Challenges p. 7 G O E D A DVAN TAGE S O F P U RE PL AY A PPL IANC E - FOCU SE D O N L I N E S A L E S L fo a r rg A e p O pl n ia li n n c e es Retailers Not Built ▪ Inconsistent brands, lack of access to higher end brands ▪ “Last Mile” omits installation and haul - away ▪ Delivery
Slide 8: Acquisition Value and Investor Benefits
Acquisition Value and p. 8 G O E D Investor Benefits
Slide 9: Synergies That Scale
Industry - Experienced Management Team YES YES Brick and Mortar Heritage YES YES Marketing Optimized for Appliance Industry YES YES Access to Premium and Exclusive Brands YES YES Knowledgeable Sales & Customer Service Teams YES YES Multiple Consumer Financing Options YES YES Dedicated Logistics and
Slide 10: Brand and Product Line Extensions
M B R A N o D r A e N D B P R O r D a U C n T d L I N s E E A XT E v N S a I O i N l S a bl e t o More Customers SELECT GOEDEKER BRANDS ACQUISITION ADDS KEY PREMIUM BRANDS p. 10 G O E D
Slide 11: Increased Coverage. Faster Delivery
Increased Coverage. Faster Delivery ▪ The addition of an East Coast fulfillment center positions suppliers closer to warehouses ▪ Midwest and East Coast fulfillment centers position products closer to customers and speed delivery times ▪ A fleet of 32 dedicated delivery trucks ▪ Combining logistics
Slide 12: Post-Acquisition Gains
Post - Acquisition Gains Pre - Acquisition 1 Orders Shipped Daily 350 - 450 800 - 1000 Delivery Times in Days 20 Days 10.5 Days Order Fill Rate 80% 85% POST - Acquisition Run Rate Expectations 2 Run Rate Result 3 Change Orders Shipped Daily Increase 1900 4x Delivery Leadtime in Days Decreases 10 Day
Slide 13: Douglas T. Moore, CEO
Douglas T . Moore, CEO Goedeker, Inc . Mr . Moore has served as Chief Executive Officer since August 2019 and as a director since April 2020 . Through his more than 25 years of retail experience, Mr . Moore has developed an understanding of strategic and tactical business issues that include store o
Slide 14: Thomas S. Harcum, CMO/CTO
Thomas S . Harcum, CMO/CTO Goedeker, Inc . Mr . Harcum joined Goedeker as Chief Marketing Officer and Chief Technology Officer in January 2020 . He has more than 20 years' experience in marketing and technology in several fields including ; Pharma and Publishing and Ecommerce . Particularly, Mr . Ha
Slide 15: Income Statement 2020 Estimates
9 - Months Ended September 30 9M 2020 A 3 - Months Ended December 31 Q4 2020 E 12 - Months Ended December 31 FY 2020 E GOEDEKER (GOED) Appli a n ce s C o nn ec t io n GOEDEKER (GOED) Appli a n ce s C o nn ec t io n GOEDEKER (GOED) Product Sales, Net $ 38,397,304 $ 226,785,594 $ 17,600,000 $ 80,000,0
Slide 16: 2021 Income Statement Forecast
2021 I n c o m e Statement FY 2020 E stimates GOED and Appliances Connection Full Year Combined Estimates FY 2021 F orecast GOED and Appliances Connection Full Year Forecasts, Respectively FY 2021 F orecast GOED 2021 Forecast Post - Acquisition For the 12 Months Ended 12/31 2 0 2 1 F O R E C A S T F
Slide 17: Non-GAAP EBITDA Reconciliation
For the 9 - Months Ended 9/30 For the 3 - Months Ended 12/31 FY 2020 E GOEDEKER (GOED) 9M 2020 A GOEDEKER (GOED) 9M 2020 A A pp li ances Co nnec t i o n Q4 2020 E GOEDEKER (GOED) Q4 2020 E Appli a n ce s C o nn ec t io n Net income (loss) Pre - Tax $ (10,925,868) $ 23,679,146 $ (2,021,000) $ 8,972,0
Slide 18: Cap Table and Balance Sheet
C a p p. 18 : G O E D T a bl e September 30 2020 A GOEDEKER (GOED) September 30 2020 E Combined GOEDEKER (GOED) GOED Shares Currently Outstanding 6,111,200 6,111,200 Issuance of Common Stock Equivalents in Acquisition 1 - 5,472,346 Options (WAEP $9.00) 555,000 555,000 Warrants 55,560 55,560 Septembe
Slide 19: Near Term Arbitrage Investment Opportunity
p. 19 Near Term Arbitrage INVESTMENT OPPORTUNITY COMPANY (SYMBOL) Stock Price Enterprise Value (EV) Revenues CY 2O21E EBITDA CY 2O21E EV / EBITDA CY 2021E EV / Sales CY 2021E AMAZON.COM, INC. (AMZN) $3,099.40 $1,583,540 $448,965 $69,169 22.9 x 3.5 x WAYFAIR, INC (W) $252.54 $26,390 $15,982 $686 38.5
Slide 20: Acquisition Summary
▪ Two companies undervalued based on megatrends can combine to form a $550 M industry powerhouse ▪ EV expected well below comparable EVs at time of acquisition ▪ Synergies will bring strong revenue growth and significant operating savings ▪ Growth in consumer demand will continue at strong pace with
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