Q2 2024 Maintains Strong Gross Margins While Revenue More Than Doubles, Drives Adjusted EBITDA of $0.4 Million
Company's Reaffirms Full Year 2024 Revenue Guidance of $33.0 Million
KISSIMMEE, Fla., Aug. 19, 2024 (GLOBE NEWSWIRE) -- ECD Automotive Design, Inc. (NASDAQ:ECDA) ("ECD" or the "Company"), the world's largest Land Rover and Jaguar restoration company known for its custom luxury builds, including bespoke Defenders, Range Rovers, Jaguar E-Types, Ford Mustangs and Toyota FJs, announced today its financial results for the second quarter ended June 30, 2024.
Company Highlights
Revenues increased 129% to $8.9 million in the second quarter of 2024, compared to $3.9 million in the same year-ago quarter. Growth was driven by increased volume, higher average selling price and increased used vehicle sales versus a year ago.
Gross profit increased significantly to $2.2 million in the second quarter of 2024, compared to $1.2 million in the same year-ago quarter
Gross margin was essentially flat at 31.8% in the second quarter of 2024, compared to 31.8% in the same year-ago quarter
Net loss was ($0.9) million in the second quarter of 2024, compared to net income of $36,000 in same year-ago quarter
Adjusted EBITDA (a non-GAAP financial measure) improved $0.4 million to $0.4 million in the second quarter of 2024, compared to Adjusted EBITDA of $9,000 in the same year-ago quarter
Subsequent to quarter end, classic Toyota FJs were added to the Company's product lineup through a licensing agreement with Black Dog Trading.
Management Commentary
"ECD continues to see strong growth as we push through with our ambitious plans to be the preferred partner in the classic luxury automotive market. Progress along our growth plan was evidenced by our 129% increase in revenues to a record $8.9 million and strong gross margins of 31.8% during the second quarter, which is among industry leaders like Ferrari and other luxury auto brands," stated Scott Wallace, CEO & Founder of ECD. Mr. Wallace continued, "As we move ahead, we will continue scaling our existing footprint to maximize the business model, while also looking at growth opportunities in the larger classic car ecosystem. In 2024, we have expanded our classic car product line through the acquisition of assets of ‘Brand New Muscle Car', adding classic Mustangs, and a licensing agreement with ‘Black Dog Trading', which added classic Toyota FJs. We also continue to enhance our brand through strategic partnerships like our new collaboration with Turtleback Trailers. Not only are these opportunities important to our growth plans, but they provide us the ability to maximize our existing footprint and scale in a capital efficient manner."
Full Year 2024 Guidance
The Company is reaffirming their guidance and expects 2024 revenue to be $33.0 million, representing an increase of approximately 108% when compared to revenue of $15.1 million in 2023.
Financial Results
Revenue increased 129% to a record $8.9 million in the second quarter of 2024, compared to $3.9 million in the second quarter of 2023. The increase was primarily due increased volume, higher average selling price and increased used vehicle sales versus a year ago.
Second quarter 2024 gross profit increased significantly to $2.8 million, or 31.8% of revenue, compared to $1.2 million, or 31.8% or revenue in the second quarter of 2023.
Operating expenses were $2.7 million in the second quarter 2024, compared to $1.2 million in the second quarter 2023. The increase in operating expenses was primarily due to higher general and administrative expenses related to the ongoing costs of being a public company.
Operating Income improved to $0.1 million, compared to an operating loss of ($19,000) in the second quarter of 2023. The improvement was primarily due to a higher average selling price per vehicle and efficiencies in the build process.
Net loss for the second quarter 2024 was ($0.9 million), or $(0.03) per diluted share, compared to net income of $36,000, or $(0.00) per diluted share in the second quarter of 2023. The change in net loss was primarily the result of interest expense affiliated with a convertible note.
Adjusted EBITDA improved $0.4 million to $0.4 million in the second quarter 2024, compared to Adjusted EBITDA of $0.0 million in the second quarter of 2023.
Cash and equivalents on June 30, 2024 were $5.6 million, as compared to $8.1 million on December 31, 2023.
Earnings Call and Webcast
Management will host the conference call, followed by a question and answer session.
Date: Monday, August 19, 2024Time: 4:30 PM Eastern Time (1:30 PM Pacific Time)U.S. dial-in number: 877-270-2148International number: 412-902-6510Webcast: 2Q24 Webcast Link
The Company will also provide a link at https://ecdautodesign.com/ecd-investors/ for those who wish to stream the call via webcast. Please call the conference telephone number 5-10 minutes prior to the start time.
A telephonic replay of the conference call will also be available through August 21, 2024.
Toll-free replay number: 877-344-7529International replay number: 412-317-0088 Replay passcode: 4333997
About ECD Auto Design
ECD, a public company trading under ECDA on the Nasdaq, is a creator of restored luxury vehicles that combines classic English beauty with modern performance. Currently, ECD restores Land Rovers Defenders, Land Rover Series IIA, the Range Rover Classic, the Jaguar E-Type and we have recently added Ford Mustang and Toyota FJ. Historically, each vehicle produced by ECD was fully bespoke, a one-off that is designed by the client through an immersive luxury design experience and hand-built from the ground up in 2,200 hours by master-certified Automotive Service Excellence ("ASE") craftsmen. The company was founded in 2013 by three British "gear heads" whose passion for classic vehicles is the driving force behind exceptionally high standards for quality, custom luxury vehicles. ECD's global headquarters, known as the "Rover Dome," is a 100,000-square-foot facility located in Kissimmee, Florida that is home to 90 talented craftsmen and technicians, who hold a combined 61 ASE and five master level certifications. ECD has an affiliated logistics center in the U.K. where its seven employees work to source and transport 25-year-old work vehicles back to the U.S. for restoration. For more information, visit www.ecdautodesign.com.
About Non-GAAP Financial Measures
The Company believes that EBITDA (earnings before interest, taxes, depreciation and amortization) is useful to investors because it is commonly used to evaluate companies on the basis of operating performance and leverage.
EBITDA is not intended to represent cash flows for the periods presented, nor have they been presented as an alternative to operating income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In accordance with SEC Regulation G, the non-GAAP measurements in this press release have been reconciled to the nearest GAAP measurement, which can be viewed under the heading "Reconciliation of Net Income (loss) from Operations to EBITDA" in the financial tables included in this press release.
Cautionary Note Regarding Forward-Looking Statements
This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing," "attempting," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.
Investor RelationsBrian M. Prenoveau, CFAMZ Group – MZ North 489 5315
ECD AUTOMOTIVE DESIGN, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months EndedJune 30,
Six Months EndedJune 30,
2024
2023
2024
2023
Revenue
$
8,872,003
$
3,867,903
$
17,180,042
$
6,575,229
Cost of goods sold (exclusive of depreciation expense shown below)
6,054,705
2,639,201
11,885,805
5,042,435
Gross profit
2,817,298
1,228,702
5,294,237
1,532,794
Operating expenses
Advertising and marketing expenses
271,063
101,568
614,472
206,788
General and administrative expenses
2,284,998
1,118,060
4,461,943
2,434,567
Depreciation and amortization expenses
143,728
27,685
191,382
