NEW YORK, Feb. 04, 2021 (GLOBE NEWSWIRE) -- 1847 Holdings LLC ( EFSH) (the Company or 1847 Holdings), a publicly traded, diversified acquisition holding company that leverages its management expertise to acquire lower-middle market businesses at attractive valuations in industries with unique characteristics and defensible market positions, today announced its Kyles Custom Wood Shop (KCWS) subsidiary, acquired on October 1, 2020, generated record quarterly billings of $1.207 million in the fourth quarter ended December 31, 2020, up 16.8% from $1.034 million in the prior year period. KCWS generated billings of $4.3 million for the full fiscal year 2020, the highest annual billings since the companys founding in 1976 and up 4.6% from the prior year.
KCWS is a leading custom cabinetry maker servicing the direct-to-builder and new construction markets in Boise, Idaho, and the surrounding areas. Boise is one of the fastest growing cities in the US, and Idaho has been one of the highest population growth states in recent years, including 2020 when it had the highest population growth in the nation at 2.1%.
Notwithstanding the temporary shut-downs and slow-downs in connection with the pandemic in Q2 and Q3 of FY2020, KCWS continues to experience record growth, stated Ken Yuan, CEO of KCWS. Our strong performance is a testament to the companys focus on quality production and installation, combined with excellent customer service.
We are building a portfolio of exciting companies, and KCWS is a great addition to our holdings, stated Ellery W. Roberts, CEO of 1847 Holdings. I am thrilled with the performance of the entire KCWS team. Under Kens leadership, I believe KCWS is in a great position to fully capitalize on the growing opportunity in Idaho, and I have complete confidence in his ability to lead the team as they continue to expand relationships with new home-builders and explore new channel opportunities to further accelerate growth.
Previously, Yuan was the Head of Strategy at FedEx Supply Chain where he led a team of analysts and worked closely with the CEOs office in developing growth strategies. Prior, Yuan was the president of American Plastics, a provider of medical-grade materials and services to the Orthotic & Prosthetic industry, where he led the company in developing new product-offerings and expanding its customer base. Yuan was also a Director with Alvarez & Marsal North America, LLC, a global professional services company, where he developed and executed a vendor management strategy for a $14 billion, tier-1 automotive supplier; negotiated a $120 million senior debt facility for a corrugated packaging company; and developed a POS system implementation for a $300 million oil-&-lube franchisee for its bankruptcy restructuring. Prior to Alvarez & Marsal, Yuan worked at TPG Capital, a global, large-cap private equity firm. His work at TPG focused on portfolio-company performance and operational analysis.
About 1847 Holdings LLC
1847 Holdings LLC ( EFSH), a publicly traded diversified acquisition holding company, was founded by Ellery W. Roberts, a former partner of Parallel Investment Partners, Saunders Karp & Megrue and Principal of Lazard Freres Strategic Realty Investors. 1847 Holdings investment thesis is that capital market inefficiencies have left the founders and/or stakeholders of many small business enterprises or lower-middle market businesses with limited exit options despite the intrinsic value of their business. Given this dynamic, 1847 Holdings can consistently acquire businesses it views as solid for reasonable multiples of cash flow and then deploys resources to strengthen the infrastructure and systems to improve operations. These improvements may lead to a sale or IPO of an operating subsidiary at higher valuations than the purchase price and/or alternatively, an operating subsidiary may be held in perpetuity and contribute to 1847 Holdings ability to pay regular and special dividends to shareholders.
This press release may contain information about 1847 Holdings' view of its future expectations, plans and prospects that constitute forward-looking statements. All forward-looking statements are based on our management's beliefs, assumptions, and expectations of our future economic performance, considering the information currently available to it. These statements are not statements of historical fact. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause our actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include but are not limited to the risks set forth in "Risk Factors" included in our SEC filings.
Non-GAAP Financial Measure
Billings is not a measure of financial performance under U.S. generally accepted accounting principles (GAAP). Billings is equal to the gross amount invoiced to customers as of a given measurement date, which amount is due for payment within thirty (30) days or less. In order reconcile billings to the nearest GAAP measure, revenue, the following items are added or subtracted to billings as applicable (a) any sales discounts, (b) any work-in-process adjustment such as over-billing on a project due to incomplete installation as the result of unforeseen circumstances. The work-in-process adjustment is determined by the review of each open project on a monthly basis.
We believe that disclosure of billings provides additional information about our operating performance because it assists us in comparing the operating performance of our business on a consistent basis. Our management uses gross billings as a performance measurement because we generally bill our customers for 100% of the project cost at the time certain installation milestones have been achieved and recognize the revenue therefrom. Management believes that investors' understanding of our performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing our ongoing results of operations. Billings is an important metric because it helps show how much money our company will actually be collecting in each time period. We believe billings assists investors in analyzing the financial health of our company and the stability of our balance sheet.
The billings data disclosed in this press release is not audited. Upon completion of an audit of our financial statements covering this period, we may determine that adjustments are necessary, which adjustments may require us to revise the billing data disclosed in this press release.
Dave Gentry, CEO
Office: 1.800.RED.CHIP (733.2447)