TORONTO, Nov. 15, 2021 /CNW/ - EMERGE Commerce Ltd. (TSXV: ECOM) ("EMERGE" or the "Company"), a leading acquirer and operator of niche e-commerce brands, is pleased to provide the following corporate update based on preliminary results: 

• EMERGE achieved record Gross Merchandise Sales⁽¹⁾ ("GMS") of $5.1 million (unaudited), a 190% increase compared to October 2020
• BattlBox Group, EMERGE's largest and most recent acquisition, achieved $2 million GMS⁽¹⁾, showing strong Adjusted EBITDA⁽¹⁾ during the October 2021 period
• Based on results to date and booked offerings for the remainder of the quarter, the Company anticipates Q4 2021 to be its largest GMS⁽¹⁾ quarter to date
• Subscription-based GMS⁽¹⁾ comprised over 83% of total GMS in October 2021 compared to 0% in October 2020
• EMERGE's fastest growing brand, JustGolfStuff.ca is on track to grow by more than 2x in 2021 compared to 2020

"We had a terrific start to the Q4 holiday shopping season with record GMS in October. We are pleased to report that BattlBox had an excellent first month under EMERGE, and bookings from across the portfolio indicate that this will be our strongest quarter ever," commented Ghassan Halazon, the Company's Founder and CEO.

BattlBox Group, EMERGE's largest and most recent acquisition, and a Shopify-powered brand, achieved $2 million in GMS, with strong Adjusted EBITDA during its first month under EMERGE ownership, and an impressive repeat customer rate exceeding 85% of total customers that month.

EMERGE's subscription-based GMS comprised a record 83% of total GMS⁽¹⁾ in October 2021 compared to October 2020 when the Company had no subscription-based revenue yet. 

Halazon added, "Over the last year, we have really transformed the profile of the portfolio towards a larger portion of recurring members, with favorable Customer Lifetime Value ("CLTV") to Customer Acquisition Cost ("CAC") ratios. While we are agnostic between subscription and marketplace e-commerce models, we remain intent on acquiring sticky e-commerce businesses with a track record of organic growth and profitability."

Another EMERGE brand, JustGolfStuff, a golf equipment and apparel e-commerce business, also powered by Shopify, is on track to more than double GMS⁽¹⁾ in 2021 vs. 2020.

"JustGolfStuff is the ultimate case study of our agile platform and playbook. When the supply-side of golf experiences was challenged as a result of the pandemic, the team was able to quickly merchandise and re-direct our extensive audience's attention to an impeccable assortment of leading golf product brands as demand soared. This propelled JustGolfStuff to more than double GMS this year, making it the fastest growing brand across EMERGE, with no additional resources hired," continued Halazon.

Since its go-public listing in December 2020, EMERGE has closed two acquisitions, along with three leading subscription e-commerce brands, truLOCAL.ca, BattlBox.com and CarnivoreClub.co. In total, the Company owns and operates 7 brands across 4 verticals in North America.

With the recent $25M debt facility in place, including $17M in undrawn cash, the Company is well funded, and in a position to complete its next acquisition in the near-term.

About EMERGE

EMERGE is a disciplined, diversified, rapidly growing acquirer and operator of profitable niche e-commerce brands. Our subscription and marketplace e-commerce properties provide our members with access to premium meat & groceries, outdoor gear, golf, and other curated experiences. Our portfolio houses some of North America's most coveted online destinations including trulocal.ca, BattlBox.com, UnderPar.com, JustGolfStuff.ca, CarinvoreClub.co, WagJag.com, and BeRightBack.ca. EMERGE was named one of the fastest growing companies in Canada by the Startup 50, and the Globe and Mail's 2020 Canada's Top Growing Companies.

To learn more visit https://www.emerge-commerce.com/

Cautionary notice

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Non-GAAP Measures

This press release makes reference to certain non-GAAP measures. These non-GAAP measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the financial information of the Company reported under IFRS. Gross Merchandise Sales ("GMS"), EBITDA and Adjusted EBITDA should not be construed as alternatives to revenue or net income/loss determined in accordance with IFRS. GMS, EBITDA and Adjusted EBITDA do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.

GMS as defined by management is the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of discounts and refunds. Management believes GMS provides a useful measure for the dollar volume of e-commerce transactions made through our platforms and an indicator for our business performance.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA as defined by management means earnings before interest and financing costs, income taxes, depreciation and amortization, transaction costs, foreign exchange gains/losses, discontinued operations, unrealized gains/losses on contingent consideration and share-based compensation. Management believes that Adjusted EBITDA is a useful measure because it provides information about the operating and financial performance of EMERGE and its ability to generate ongoing operating cash flow to fund future working capital needs and fund future capital expenditures or acquisitions.

Notice regarding forward-looking statements

This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information.  Actual results and developments may differ materially from those contemplated by these statements.  The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its securities, or financial or operating results (as applicable).  Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including the risk factors discussed in the Company's filing statement which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking information contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Related Links

https://www.emerge-commerce.com/

SOURCE EMERGE Commerce Ltd.

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