ECD Auto Design Reports Third Quarter 2024 Financial Results; Revenues Increase 30% to $6.4 Million
ECD Automotive Design (NASDAQ: ECDA) reported its Q3 2024 financial results, showing significant revenue growth but wider losses. The company's Q3 revenue increased 30% to $6.4 million, with gross profit rising 108% to $2.0 million. However, net loss expanded to ($2.6) million compared to ($0.2) million in Q3 2023.
For the nine months ended September 30, 2024, revenue grew 35% to $19.9 million, with gross profit up 69% to $5.6 million. The company's growth was driven by increased volume, higher average selling prices, and increased used vehicle sales. The company recently completed financial restatements for 2022, 2023, and first half of 2024, incurring approximately $0.5 million in non-recurring expenses.
ECD maintains a strong cash position of $3.6 million as of September 30, 2024, though down from $8.1 million at the end of 2023. Management expects lower G&A expenses starting Q2 2025 and estimates cash flow break-even at approximately 120 vehicle builds per year.
ECD Automotive Design (NASDAQ: ECDA) ha riportato i risultati finanziari del terzo trimestre 2024, mostrando una significativa crescita dei ricavi ma perdite più ampie. I ricavi del terzo trimestre sono aumentati del 30% a 6,4 milioni di dollari, con un utile lordo in crescita del 108% a 2,0 milioni di dollari. Tuttavia, la perdita netta è aumentata a ($2,6) milioni rispetto a ($0,2) milioni nel terzo trimestre 2023.
Per i nove mesi terminati il 30 settembre 2024, i ricavi sono cresciuti del 35% a 19,9 milioni di dollari, con un utile lordo in aumento del 69% a 5,6 milioni di dollari. La crescita dell'azienda è stata guidata da un aumento dei volumi, da prezzi di vendita medi più elevati e da un incremento delle vendite di veicoli usati. L'azienda ha recentemente completato le rettifiche finanziarie per il 2022, 2023 e il primo semestre del 2024, sostenendo circa 0,5 milioni di dollari in spese non ricorrenti.
ECD mantiene una solida posizione di liquidità di 3,6 milioni di dollari al 30 settembre 2024, anche se in calo rispetto a 8,1 milioni di dollari alla fine del 2023. La direzione prevede minori spese generali e amministrative a partire dal secondo trimestre 2025 e stima il pareggio di cassa a circa 120 veicoli costruiti all'anno.
ECD Automotive Design (NASDAQ: ECDA) informó sus resultados financieros del tercer trimestre de 2024, mostrando un crecimiento significativo en los ingresos pero pérdidas más amplias. Los ingresos del tercer trimestre aumentaron 30% a 6.4 millones de dólares, con una ganancia bruta que subió 108% a 2.0 millones de dólares. Sin embargo, la pérdida neta se amplió a ($2.6) millones en comparación con ($0.2) millones en el tercer trimestre de 2023.
Para los nueve meses que terminaron el 30 de septiembre de 2024, los ingresos crecieron 35% a 19.9 millones de dólares, con una ganancia bruta que aumentó 69% a 5.6 millones de dólares. El crecimiento de la compañía fue impulsado por un aumento en el volumen, precios de venta promedio más altos y un incremento en las ventas de vehículos usados. La empresa completó recientemente ajustes financieros para 2022, 2023 y la primera mitad de 2024, incurriendo en aproximadamente 0.5 millones de dólares en gastos no recurrentes.
ECD mantiene una sólida posición de efectivo de 3.6 millones de dólares al 30 de septiembre de 2024, aunque ha disminuido desde 8.1 millones de dólares a finales de 2023. La dirección espera menores gastos generales y administrativos a partir del segundo trimestre de 2025 y estima que el flujo de caja alcanzará el equilibrio con aproximadamente 120 vehículos construidos por año.
ECD 자동차 디자인 (NASDAQ: ECDA)는 2024년 3분기 재무 결과를 발표하며 수익이 크게 증가했지만 손실이 확대되었다고 보고했습니다. 3분기 수익은 30% 증가하여 640만 달러에 달했고, 총 이익은 108% 증가하여 200만 달러에 이르렀습니다. 그러나 순손실은 2023년 3분기의 ($0.2) 백만 달러에 비해 ($2.6) 백만 달러로 확대되었습니다.
2024년 9월 30일로 종료된 9개월 동안 수익은 35% 증가하여 1990만 달러에 이르렀고, 총 이익은 69% 증가하여 560만 달러에 달했습니다. 회사의 성장은 판매량 증가, 평균 판매 가격 상승 및 중고차 판매 증가에 의해 이끌렸습니다. 회사는 최근 2022년, 2023년 및 2024년 상반기에 대한 재무 수정 작업을 완료했으며, 약 50만 달러의 비정기적 비용이 발생했습니다.
ECD는 2024년 9월 30일 기준으로 360만 달러의 강력한 현금 보유고를 유지하고 있지만, 2023년 말의 810만 달러에서 감소했습니다. 경영진은 2025년 2분기부터 일반 관리비가 감소할 것으로 예상하며, 연간 약 120대의 차량 생산 시 현금 흐름이 균형을 이룰 것으로 추정하고 있습니다.
ECD Automotive Design (NASDAQ: ECDA) a publié ses résultats financiers pour le troisième trimestre 2024, montrant une croissance significative des revenus mais des pertes plus importantes. Les revenus du troisième trimestre ont augmenté de 30% pour atteindre 6,4 millions de dollars, avec un bénéfice brut en hausse de 108% pour atteindre 2,0 millions de dollars. Cependant, la perte nette s'est élargie à ($2,6) millions par rapport à ($0,2) millions au troisième trimestre 2023.
Pour les neuf mois se terminant le 30 septembre 2024, les revenus ont augmenté de 35% pour atteindre 19,9 millions de dollars, avec un bénéfice brut en hausse de 69% pour atteindre 5,6 millions de dollars. La croissance de l'entreprise a été soutenue par une augmentation du volume, des prix de vente moyens plus élevés et une augmentation des ventes de véhicules d'occasion. L'entreprise a récemment terminé des révisions financières pour 2022, 2023 et le premier semestre 2024, entraînant environ 0,5 million de dollars de dépenses non récurrentes.
ECD maintient une solide position de liquidité de 3,6 millions de dollars au 30 septembre 2024, bien qu'elle ait diminué par rapport à 8,1 millions de dollars à la fin de 2023. La direction s'attend à des dépenses générales et administratives plus faibles à partir du deuxième trimestre 2025 et estime que le flux de trésorerie atteindra l'équilibre avec environ 120 véhicules construits par an.
ECD Automotive Design (NASDAQ: ECDA) hat seine finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, die ein signifikantes Umsatzwachstum, aber größere Verluste zeigen. Der Umsatz im dritten Quartal stieg um 30% auf 6,4 Millionen Dollar, während der Bruttogewinn um 108% auf 2,0 Millionen Dollar anstieg. Der Nettoverlust erweiterte sich jedoch auf ($2,6) Millionen im Vergleich zu ($0,2) Millionen im dritten Quartal 2023.
Für die neun Monate bis zum 30. September 2024 wuchs der Umsatz um 35% auf 19,9 Millionen Dollar, während der Bruttogewinn um 69% auf 5,6 Millionen Dollar anstieg. Das Wachstum des Unternehmens wurde durch ein erhöhtes Volumen, höhere durchschnittliche Verkaufspreise und gestiegene Verkäufe von Gebrauchtfahrzeugen vorangetrieben. Das Unternehmen hat kürzlich finanzielle Neuberechnungen für 2022, 2023 und das erste Halbjahr 2024 abgeschlossen und dabei etwa 0,5 Millionen Dollar an einmaligen Kosten verursacht.
ECD hält zum 30. September 2024 eine starke Liquiditätsposition von 3,6 Millionen Dollar, obwohl dies im Vergleich zu 8,1 Millionen Dollar Ende 2023 gesunken ist. Das Management erwartet ab dem zweiten Quartal 2025 niedrigere allgemeine und administrative Kosten und schätzt, dass der Cashflow bei etwa 120 Fahrzeugen pro Jahr ausgeglichen sein wird.
- Revenue growth of 30% YoY to $6.4M in Q3 2024
- Gross profit margin improved to 31.1% from 19.4% YoY
- Strong YTD revenue growth of 35% to $19.9M
- Gross profit increased 108% to $2.0M in Q3
- Net loss widened to $2.6M from $0.2M YoY in Q3
- Cash position decreased to $3.6M from $8.1M since December 2023
- Required financial restatements for 2022-2024 with $0.5M in non-recurring expenses
- Adjusted EBITDA loss increased to $0.5M from $0.3M YoY
Insights
ECD Automotive Design's Q3 results show a 30% revenue increase to
The company's net loss dramatically widened to
The cash position has deteriorated from
Most concerning is the disclosed restatement of financials for 2022, 2023, and first half of 2024, raising questions about accounting controls and governance. Management projects cash flow break-even at approximately 120 vehicle builds annually, but provides no timeline for achieving this milestone or current production rate context.
The retail expansion strategy shows potential but requires substantial execution to translate into profitability. Given the widening losses despite revenue growth, significant cash burn, and financial restatements, investors should approach with heightened caution despite the positive top-line growth.
Year-To-Date Revenue Growth of
KISSIMMEE, Fla., March 25, 2025 (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 third quarter and year-to-date ended September 30, 2024.
Financial results and comparisons are based on re-stated numbers for 2023 and the first half of 2024.
Third Quarter 2024 Highlights
- Revenues increased
30% to$6.4 million in the third quarter of 2024, compared to$5.0 million in the same year-ago quarter. Growth was driven by increased volume, higher average selling price, increased upgrades and increased used vehicle sales versus a year ago. - Gross profit increased
108% to$2.0 million in the third quarter of 2024, compared to$1.0 million in the same year-ago quarter. - Net loss was (
$2.6) million in the third quarter of 2024, compared to a net loss of ($0.2) million in same year-ago quarter. - Adjusted EBITDA (a non-GAAP financial measure) was a loss of (
$0.5) million in the third quarter of 2024, compared to an Adjusted EBITDA loss of ($0.3) million in the same year-ago quarter. There were approximately$0.1 million of non-recurring expenses incurred in connection with the restatement of financials for 2022, 2023 and the first and second quarters of 2024.
Nine Months Ended September 30, 2024 Highlights
- Revenues increased
35% to$19.9 million for the nine months ended September 30, 2024, compared to$14.7 million in the same year-ago period. Growth was driven by increased volume, higher average selling price, increased upgrades and increased used vehicle sales versus a year ago. - Gross profit increased
69% to$5.6 million for the nine months ended September 30, 2024, compared to$3.3 million in the same year-ago period. - Net loss was (
$7.5) million for the nine months ended September 30, 2024, compared to a net loss of ($0.5) million in same year-ago period. - Adjusted EBITDA (a non-GAAP financial measure) was a loss of (
$1.2) million for the nine months ended September 30, 2024, compared to an Adjusted EBITDA loss of ($0.5) million in the same year-ago period. There were approximately$0.5 million of non-recurring expenses incurred in connection with the restatements of the 2022, 2023 and first half 2024 financial statements, the suspension of BF Borgers CPA PC and related matters. The Company expects to incur additional fees through March 31, 2025 relating to the restated information.
Management Commentary
Speaking about the results for the nine months ended September 30, 2024, Scott Wallace, CEO & Co-Founder of ECD stated, “ECD continues to see strong growth as we push through with our ambitious plans to be the premier builder in the classic luxury automotive market. Progress along our growth plan was evidenced by our
“On November 19, 2024, the Company disclosed that its 2022, 2023 and first half of 2024 financial statements should no longer be relied upon. We are happy to put the financial restatement behind us and file our third quarter 2024 results. We believe that commencing in the second quarter of 2025, there will be lower G&A expenses as the Company incurred significant non-recurring professional fees in connection with the restatements of the 2022, 2023 and first half 2024 financial statements, the suspension of BF Borgers CPA PC and related matters. We believe our cash flow break even is approximately 120 vehicle builds per year.”
Mr. Wallace concluded: “The business operations and our long-term outlook remain unchanged and unaffected by the financial restatement. Our retail strategy is a key component of continued growth and is already showing positive proof points. Our ‘store within a store’ at One Driver’s Club in West Palm Beach launched in late 2024 and is already contributing to our backlog and ‘ready-now’ sales. Our partnership with 10 Easy Street of Nantucket launches in April and we have inventory ready. ECD is actively evolving the retail growth strategy to support backlog and vehicles that are ready now. Going forward, we believe we will continue to drive higher revenue through increased sales, higher average selling prices, product innovation driving upgrades and pursuing additional avenues of revenue to take advantage of the multi-billion dollar classic car ecosystem.”
Third Quarter 2024 Financial Results
Revenue increased
Third quarter 2024 gross profit was
Operating expenses were
Operating loss was (
Net loss for the third quarter 2024 was (
Adjusted EBITDA was a loss of (
Cash and equivalents on September 30, 2024 were
Nine Months Ended September 30, 2024 Financial Results
Revenue increased
For the nine months ended September 30, 2024 gross profit increased to
Operating expenses were
Operating loss was (
Net loss for the nine months ended September 30, 2024 was (
Adjusted EBITDA was a loss of (
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 Rover 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 72 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. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. You should carefully consider the risks and uncertainties that affect our business, including those described in our filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in our Annual Report on Form 10-K filed for the year ended December 31, 2023 with the SEC, which can be obtained on the SEC website at www.sec.gov. These forward-looking statements speak only as of the date of this communication. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and filings with the SEC.
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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 As Restated | 2024 | 2023 As Restated | |||||||||||||
| Revenue | $ | 6,440,049 | $ | 4,954,277 | $ | 19,884,213 | $ | 14,698,260 | ||||||||
| Cost of goods sold (exclusive of depreciation expense shown below) | 4,432,509 | 3,991,328 | 14,296,197 | 11,384,228 | ||||||||||||
| Gross profit | 2,007,540 | 962,949 | 5,588,016 | 3,314,032 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Advertising and marketing expenses | 258,138 | 100,038 | 886,119 | 306,826 | ||||||||||||
| General and administrative expenses | 2,363,570 | 1,138,673 | 6,776,419 | 3,543,999 | ||||||||||||
| Depreciation and amortization expenses | 27,263 | 12,086 | 102,362 | 67,079 | ||||||||||||
| Total operating expenses | 2,648,971 | 1,250,797 | 7,764,900 | 3,917,904 | ||||||||||||
| Income (loss) from operations | (641,431 | ) | (287,848 | ) | (2,176,884 | ) | (603,872 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest expense | (1,401,829 | ) | (4,523 | ) | (3,844,653 | ) | (4,523 | ) | ||||||||
| Change in fair value of warrant liabilities | (118,336 | ) | - | (570,381 | ) | - | ||||||||||
| Change in fair value of conversion option liabilities | (124,752 | ) | - | (361,611 | ) | - | ||||||||||
| Gain on forgiveness of payable | 319,899 | - | 319,899 | - | ||||||||||||
| Foreign exchange loss | (1,534 | ) | - | (12,054 | ) | - | ||||||||||
| Other income (expense), net | (286,048 | ) | 53,547 | 24,864 | 130,697 | |||||||||||
| Total other (expense) income, net | (1,612,600 | ) | 49,024 | (4,443,936 | ) | 126,174 | ||||||||||
| Income (loss) before income taxes | (2,254,031 | ) | (238,824 | ) | (6,620,820 | ) | (477,698 | ) | ||||||||
| Income tax expense | (315,487 | ) | - | (838,055 | ) | - | ||||||||||
| Net income (loss) | $ | (2,569,518 | ) | $ | (238,824 | ) | $ | (7,458,875 | ) | $ | (477,698 | ) | ||||
| Net income (loss) per common share, basic and diluted | $ | (0.08 | ) | $ | (0.01 | ) | $ | (0.23 | ) | $ | (0.02 | ) | ||||
| Weighted average number of common shares outstanding, basic and diluted | 33,902,379 | 24,000,000 | 32,596,651 | 24,000,000 | ||||||||||||
| ECD AUTOMOTIVE DESIGN, INC. CONSOLIDATED BALANCE SHEETS | ||||||||
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (unaudited) | (audited) As Restated | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,592,128 | $ | 8,134,211 | ||||
| Accounts receivable, net | 17,391 | - | ||||||
| Inventories | 10,895,128 | 9,607,766 | ||||||
| Prepaid and other current assets | 512,809 | 34,006 | ||||||
| Total current assets | 15,017,456 | 17,775,983 | ||||||
| Goodwill | 1,291,098 | - | ||||||
| Property and equipment, net | 506,057 | 913,097 | ||||||
| Deferred tax asset | - | 838,055 | ||||||
| Right-of-use assets | 3,496,429 | 3,763,295 | ||||||
| Brand name, net | 14,250 | - | ||||||
| Deposit | 60,200 | 77,686 | ||||||
| TOTAL ASSETS | $ | 20,385,490 | $ | 23,368,116 | ||||
| LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,116,547 | $ | 898,445 | ||||
| Accrued expenses | 1,637,997 | 779,695 | ||||||
| Deferred revenue | 12,028,149 | 16,190,861 | ||||||
| Lease liability, current | 343,821 | 314,903 | ||||||
| Floor plan payable | 757,000 | - | ||||||
| Other payable | 1,681,091 | 1,549,863 | ||||||
| Total current liabilities | 18,564,605 | 19,733,767 | ||||||
| Lease liability, non-current | 3,465,168 | 3,727,183 | ||||||
| Convertible notes, net of debt discount | 12,919,905 | 10,654,444 | ||||||
| Warrant liabilities, at fair value | 623,215 | 26,283 | ||||||
| Conversion option, at fair value | 470,316 | 2,724 | ||||||
| Total liabilities | 36,043,209 | 34,144,401 | ||||||
| Commitments and contingencies (Note 16) | - | - | ||||||
| Redeemable preferred stock, | 1 | 3 | ||||||
| Stockholders’ deficit: | ||||||||
| Common stock, | 3,620 | 3,187 | ||||||
| Additional paid-in capital | 2,576,528 | - | ||||||
| Other comprehensive income | 482 | - | ||||||
| Accumulated deficit | (18,238,350 | ) | (10,779,475 | ) | ||||
| Total Stockholders’ Deficit | (15,657,720 | ) | (10,776,288 | ) | ||||
| TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | $ | 20,385,490 | $ | 23,368,116 | ||||
| ECD AUTOMOTIVE DESIGN, INC. Non-GAAP Reconciliation - Reconciliation of Net Income (loss) to Adjusted EBITDA | ||||||||||||||||
| For the three months ended | For the nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net (loss) income | $ | (2,563,014 | ) | $ | (238,824 | ) | $ | (7,458,875 | ) | $ | (477,968 | ) | ||||
| Excluding: | ||||||||||||||||
| Interest expense | 1,401,829 | 4,523 | 3,844,653 | 4,523 | ||||||||||||
| Income tax (benefit) expense | 315,487 | - | 838,055 | - | ||||||||||||
| Equity compensation expense | 50,000 | - | 319,459 | - | ||||||||||||
| Non-recurring professional fees* | 108,475 | - | 547,854 | - | ||||||||||||
| Other (income) expense, net | 286,048 | (53,547 | ) | (24,864 | ) | (130,697 | ) | |||||||||
| Change in FV of warrant liabilities | 118,336 | - | 570,381 | - | ||||||||||||
| Change in FV of conversion option liabilities | 124,752 | - | 361,611 | - | ||||||||||||
| Gain on forgiveness of payable | (319,899 | ) | - | (319,899 | ) | - | ||||||||||
| Foreign exchange loss | 1,534 | - | 12,054 | - | ||||||||||||
| Depreciation | 20,758 | 12,086 | 102,362 | 67,079 | ||||||||||||
| Adjusted EBITDA | $ | (455,693 | ) | $ | (275,762 | ) | $ | (1,207,209 | ) | $ | (537,063 | ) | ||||
FAQ
What was ECD Automotive Design's (ECDA) revenue growth in Q3 2024?
How much did ECDA's net loss increase in Q3 2024?
What is ECDA's gross profit margin for Q3 2024?
How many vehicle builds does ECDA need annually to reach cash flow break-even?
What caused the increase in ECDA's operating expenses for Q3 2024?
