NEW YORK — 1847 Holdings' subsidiary CMD Inc., a Las Vegas-based cabinetry manufacturer, reported strong financial results for fiscal year 2023 and the first nine months of 2024. In 2023, revenues grew 97.5% to $27.1 million, with net income reaching $5.8 million, marking a significant turnaround from a $1.5 million loss in 2022.

For the nine months ended September 30, 2024, CMD continued its growth trajectory with revenues up 21.8% to $23.3 million and net income increasing 90.6% to $6.6 million. The company has implemented strategic initiatives including expansion into Arizona and Utah markets, establishing a new division for tract home projects in Northern Las Vegas, and plans to enter the Ready-To-Assemble cabinetry market for multi-family housing through synergies with subsidiary Innovative Cabinets and Design.

The results were released just a few days after 1847 Holdings LLC confirmed that it was in preliminary discussions regarding the potential sale of CMD Inc. According to the website, Inesting.com, the potential deal came about after an unnamed third party expressed interest in acquiring CMD Inc. Talks are at an early stage, the company emphasized, and it remains uncertain whether any transaction will occur, according to the website. 

Fiscal Year 2023 financial highlights:

• Revenues increased by 97.5% to $27.1 million in 2023, compared to $13.7 million in 2022
• Achieved a gross profit of $10.8 million in 2023, an 187.5% increase from $3.8 million in the prior year
• Income from operations improved to $6.0 million in 2023, a notable turnaround from a loss of $1.3 million in 2022
• Net income increased to $5.8 million in 2023, compared to a net loss of $1.5 million in 2022

Nine months ended September 30, 2024:

• Revenues increased 21.8% to $23.3 million in the nine months ended September 30, 2024, compared to $19.1 million in the same period of 2023
• Increased gross profit by 51.3% to $10.8 million in the nine months ended September 30, 2024, compared to $7.1 million in the same period of 2023
• Income from operations increased 85.4% to $6.7 million in the nine months ended September 30, 2024, compared to $3.6 million in the same period of 2023
• Net income increased by 90.6% to $6.6 million in the nine months ended September 30, 2024, compared to $3.4 million in the same period of 2023

Ellery W. Roberts, CEO of 1847 Holdings, said: "CMD Inc.'s outstanding financial performance underscores the effectiveness of our acquisition strategy and the strength of CMD's operations. To drive CMD's growth, we have implemented several strategic initiatives. We have obtained licenses to operate in Arizona and Utah and are actively bidding on projects scheduled to commence in 2025. 

"Additionally, we have established a dedicated division focused on tract home projects in Northern Las Vegas, targeting both local and national builders. Recognizing a significant market opportunity in supplying Ready-To-Assemble (RTA) cabinetry for Las Vegas' multi-family housing market, we plan to leverage synergies with 1847 Holdings' subsidiary, Innovative Cabinets and Design, to address this demand. 

"We believe that these strategic initiatives position CMD for continued growth and enhanced market presence. By expanding into high-demand areas and addressing unmet market needs, we believe that CMD is well-equipped to capitalize on emerging opportunities. The acquisition of CMD further illustrates our ability to identify and acquire undervalued businesses with strong profitability at attractive valuations."