ECD Auto Design Reports First Quarter 2024 Financial Results; Revenues Increase 207% to Record $8.3 Million
ECD Auto Design (NASDAQ: ECDA), the largest Land Rover and Jaguar restoration company, announced its financial results for Q1 2024, highlighting a 207% revenue increase to $8.3 million. Gross profit surged to $2.5 million with a margin expansion to 30.1%. However, net loss widened to $1.6 million compared to $1.1 million the previous year. Adjusted EBITDA improved to $0.4 million. Operating expenses rose due to growth and public company costs. The company acquired Brand New Muscle Car and a licensing agreement with Black Dog Trading. ECD reaffirmed its full-year 2024 revenue guidance at $33.0 million.
- Revenue increased 207% to $8.3 million.
- Gross margin expanded to 30.1%.
- Gross profit increased to $2.5 million.
- Adjusted EBITDA improved to $0.4 million.
- Acquisition of Brand New Muscle Car.
- Licensing agreement with Black Dog Trading.
- Reaffirmed full-year 2024 revenue guidance at $33.0 million.
- Net loss widened to $1.6 million.
- Operating expenses increased to $2.5 million.
- Cash and equivalents decreased to $5.6 million.
Insights
The 207% increase in revenues to
However, the company reported a net loss of
The reaffirmation of full-year 2024 revenue guidance at
In sum, while the current net loss is concerning, the company's strategic moves and operational improvements present a promising outlook for sustained growth.
ECD Auto Design's focus on the classic car ecosystem, which it estimates to be a
The growth in gross margin to 30.1% from 10.4% in the same quarter last year is notable. This puts ECD in line with industry leaders like Ferrari, indicating highly effective cost management and pricing strategies. The improved gross profit of
However, the decrease in cash and equivalents from
Overall, ECD Auto Design's strategic market positioning and operational improvements suggest a potential for strong performance, but careful attention to cash flow is necessary.
Q1 2024 Gross Margin Expands Significantly to
Company’s Reaffirms Full Year 2024 Revenue Guidance of
KISSIMMEE, Fla., June 28, 2024 (GLOBE NEWSWIRE) -- ECD Auto Design (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 first quarter ended March 31, 2024.
Company Highlights
- Revenues increased
207% to$8.3 million in the first quarter of 2024, compared to$2.7 million in the same year-ago quarter - Gross profit increased significantly to
$2.5 million in the first quarter of 2024, compared to$0.3 million in the same year-ago quarter - Gross margin increased to
30.1% in the first quarter of 2024, compared to10.4% in the same year-ago quarter - Net loss was
$1.6 million in the first quarter of 2024, compared to a net loss of$1.1 million in same year-ago quarter - Adjusted EBITDA (a non-GAAP financial measure) improved
$1.4 million to$0.4 million in the first quarter of 2024, compared to Adjusted EBITDA of$(0.9) million in the same year-ago quarter - Added classic American muscle cars through our acquisition of Brand New Muscle Car and classic Toyota FJs to the Company’s product lineup through a licensing agreement with Black Dog Trading
Management Commentary
“The momentum we established in 2023 continued into the first quarter of 2024, evidenced by our
“To give some context on the opportunity in front of ECD, we estimate that the classic car ecosystem represents a
Full Year 2024 Guidance
The Company is reaffirming their guidance and expects 2024 revenue to be
Financial Results
Revenue increased
First quarter 2024 gross profit increased significantly to
Operating expenses were
Operating loss improved to
Net loss for the first quarter 2024 was
Adjusted EBITDA improved
Cash and equivalents on March 31, 2024 were
About ECD Auto Design
ECD (NASDAQ: ECDA) 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 the Ford Mustang and classic Toyota FJs. Each vehicle produced by ECD is 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 89 talented craftsmen and technicians, who hold a combined 69 ASE and four 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 Relations
Brian M. Prenoveau, CFA
MZ Group – MZ North America
ECDA@mzgroup.us
561 489 5315
| ECD AUTOMOTIVE DESIGN, INC CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenue | $ | 8,308,039 | $ | 2,707,326 | ||||
| Cost of goods sold (exclusive of depreciation expense shown below) | 5,831,100 | 2,403,234 | ||||||
| Gross profit | 2,476,939 | 304,092 | ||||||
| Operating expenses | ||||||||
| Advertising and marketing expenses | 343,409 | 105,220 | ||||||
| General and administrative expenses | 2,176,945 | 1,316,507 | ||||||
| Depreciation expense | 47,654 | 27,308 | ||||||
| Total operating expenses | 2,568,008 | 1,449,035 | ||||||
| Income (loss) from operations | (91,069 | ) | (1,144,943 | ) | ||||
| Other income (expense) | ||||||||
| Interest expense | (970,777 | ) | - | |||||
| Foreign exchange loss | (4,704 | ) | - | |||||
| Other income (expense), net | 48,526 | 22,377 | ||||||
| Total other (expense) income, net | (926,955 | ) | 22,377 | |||||
| Loss before income taxes | (1,018,024 | ) | (1,122,566 | ) | ||||
| Income tax expense | (532,280 | ) | - | |||||
| Net loss | $ | (1,550,304 | ) | $ | (1,122,566 | ) | ||
| Net loss per common share, basic and diluted | $ | (0.05 | ) | $ | (0.05 | ) | ||
| Weighted average number of common shares outstanding, basic and diluted | 31,896,640 | 24,000,000 | ||||||
| ECD AUTOMOTIVE DESIGN, INC CONSOLIDATED BALANCE SHEETS | ||||||||
| March 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 5,560,321 | $ | 8,134,211 | ||||
| Inventories | 10,914,086 | 11,799,304 | ||||||
| Prepaid and other current assets | 346,657 | 34,006 | ||||||
| Total current assets | 16,821,064 | 19,967,521 | ||||||
| Property and equipment, net | 981,801 | 968,677 | ||||||
| Deferred tax asset | - | 515,444 | ||||||
| Right-to-use asset | 3,675,559 | 3,763,294 | ||||||
| Deposit | 77,686 | 77,686 | ||||||
| TOTAL ASSETS | $ | 21,556,110 | $ | 25,292,622 | ||||
| LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 995,777 | $ | 768,808 | ||||
| Accrued expenses | 1,330,255 | 687,000 | ||||||
| Deferred revenue | 13,983,645 | 17,596,512 | ||||||
| Deferred tax liability | 16,836 | - | ||||||
| Lease liability, current | 324,791 | 314,903 | ||||||
| Other payable | 1,465,098 | 1,533,815 | ||||||
| Total current liabilities | 18,116,402 | 20,901,038 | ||||||
| Lease liability, non-current | 3,641,602 | 3,727,182 | ||||||
| Convertible note, net of debt discount | 11,117,460 | 10,683,452 | ||||||
| Total liabilities | 32,875,464 | 35,310,993 | ||||||
| Redeemable preferred stock, | 3 | 3 | ||||||
| Stockholders’ deficit: | ||||||||
| Common stock, | 3,190 | 3,187 | ||||||
| Additional paid-in capital | 249,997 | - | ||||||
| Accumulated deficit | (11,572,544 | ) | (10,022,240 | ) | ||||
| Total Stockholders’ Deficit | (11,319,357 | ) | (10,019,053 | ) | ||||
| TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | $ | 21,556,110 | $ | 25,292,622 | ||||
| Non-GAAP Reconciliation - Reconciliation of Net Income (loss) to Adjusted EBITDA | ||||||||
| For the three months ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Net loss | $ | (1,550,304 | ) | $ | (1,122,566 | ) | ||
| Excluding: | ||||||||
| Interest expense, net | 970,777 | - | ||||||
| Income tax (benefit) expense | 532,280 | - | ||||||
| Non-recurring fees | 408,936 | 210,099 | ||||||
| Equity compensation expense | 80,000 | - | ||||||
| Other (income) expense, net | (48,526 | ) | (22,377 | ) | ||||
| Foreign exchange loss | 4,704 | - | ||||||
| Depreciation | 47,654 | 27,308 | ||||||
| Adjusted EBITDA | 445,521 | (907,536 | ) | |||||
FAQ
What were the Q1 2024 earnings results for ECDA?
What is the revenue guidance for ECDA in 2024?
What was the gross profit for ECDA in Q1 2024?
What was the reason for the increase in ECDA's operating expenses in Q1 2024?
What new products did ECDA add in 2024?
