EzFill Announces Fourth Quarter and Full Year 2023 Financial Results
- Impressive 54% revenue growth to $23.2 million in 2023.
- Gross profit of $1.3 million achieved for the first time.
- 63% increase in gallons delivered from 2022 to 2023.
- Average fuel margin per gallon rose by 44% to $0.65 in 2023.
- Net loss reduced by 40% to $10.5 million in 2023.
- Addition of 148 new fleet accounts in 2023.
- Focus on improving gross profit through pricing strategies and cost efficiencies.
- Cash position decreased to $0.23 million by the end of 2023.
- None.
Insights
The reported revenue increase of 54% for EzFill Holdings, Inc. is a significant indicator of the company's growth trajectory, especially in the context of the mobile fueling industry. This sector is characterized by its capital-intensive nature and the necessity to achieve scale for profitability. The addition of 148 new fleet accounts suggests a robust expansion strategy, tapping into the recurring revenue model that fleet contracts typically offer.
However, it is worth noting the reported net loss, which, despite decreasing by 40%, still indicates that the company is in a growth phase and has not yet reached profitability. Investors often scrutinize such metrics to gauge the sustainability of a company's growth. The increase in average fuel margin per gallon by 44% is also a positive sign, suggesting improved operational efficiency or pricing power, both of which are critical for margin expansion in this industry.
The reduction in operating expenses by 42% and the reported gross profit of $1.3 million for EzFill are pivotal for understanding the company's financial health. A decrease in operating expenses can reflect improved operational efficiency or cost-cutting measures, both of which can enhance profitability margins. Nevertheless, the balance sheet reflects a concerning cash position of $0.23 million, a significant drop from the previous year's $2.1 million. This liquidity position may raise concerns about the company's ability to sustain operations without additional financing.
The increase in interest expense year over year due to loans taken to fund operations is another critical point of analysis. It indicates reliance on external financing, which could be a red flag for potential investors looking for financially independent operations. Moreover, the impairment recorded on materials for constructing delivery vehicles suggests potential overestimation of asset values in the past or changes in strategy that impacted the expected realizable value of these assets.
Within the energy sector, the mobile fueling industry is becoming increasingly competitive and EzFill's performance must be contextualized within this environment. The company's ability to increase its average margin per gallon in a year with volatile gas prices is commendable. This resilience against market volatility is a testament to the company's pricing strategy and cost management. The growth in gallons delivered by 63% also indicates that the demand for mobile fueling services is on the rise, possibly driven by convenience and the growth of fleet services requiring on-site fueling solutions.
Looking ahead, the company's focus on enhancing technology offerings could be a strategic move to differentiate itself from competitors and add value to its services. However, the long-term sustainability of this growth will depend on the company's ability to continue improving its gross profit and managing operating costs amidst the challenges of fluctuating fuel prices and the capital-intensive nature of the industry.
— 2023 Revenue Increased
— Reports first year with a gross profit of
— Gallons delivered increased
— Average Fuel Margin per Gallon Rose
— Net loss decreased
— 148 New Fleet Accounts Added in 2023 —
MIAMI, FL, April 02, 2024 (GLOBE NEWSWIRE) -- EzFill Holdings, Inc. (“EzFill” or the “Company”) (NASDAQ: EZFL), a pioneer and emerging leader in the mobile fueling industry, announced today its financial results for the three- and twelve-month period ended December 31, 2023.
4Q23 and FY 2023 Highlights (in US$, except gallons delivered)
| 4Q 2023 | 4Q 2022 | Year 2023 | Year 2022 | |||||||||||||
| Financial Highlights | ||||||||||||||||
| Revenue | 5,690,746 | 4,858,819 | 23,216,423 | 15,044,721 | ||||||||||||
| Net loss | (3,427,569 | ) | (6,290,176 | ) | (10,471,889 | ) | (17,505,765 | ) | ||||||||
| Adjusted EBITDA* | (1,454,235 | ) | (2,622,533 | ) | (6,013,755 | ) | (11,409,858 | ) | ||||||||
| Operating Highlights | ||||||||||||||||
| Total Gallons Delivered | 1,468,956 | 1,238,923 | 5,853,167 | 3,589,415 | ||||||||||||
| Avg. Fuel Margin per Gallon | $ | 0.70 | $ | 0.43 | $ | 0.65 | $ | 0.45 | ||||||||
* See end of this press release for reconciliation to US GAAP
Commenting on the quarterly and full year results, Yehuda Levy, EzFill’s Interim Chief Executive Officer, stated, “2023 was a strong year. We grew revenue by
“As we look forward,” Levy continued, “We hope to continue the strong growth in our customer base. We are also enhancing our technology offerings to help grow our business. We continue to be focused on improving gross profit with a combination of pricing and fees as well as driver and fuel purchasing cost efficiencies. Every member of our team was a key contributor to our achievements this year and I would like to congratulate them all on a great 2023.”
Fourth Quarter 2023 Operational Highlights
| ● | During the fourth quarter of 2023, the Company reported revenue of | |
| ● | Operating expenses were | |
| ● | Depreciation and amortization of | |
| ● | Interest expense was higher in the fourth quarter year over year due to loans taken to fund operating expenses. | |
| ● | The net loss in the fourth quarter was | |
| ● | Adjusted EBITDA loss in the fourth quarter 2023 was |
2023 Fiscal Year Financial Results
| ● | We generated revenues of | |
| ● | Cost of sales was | |
| ● | We incurred operating expenses of | |
| ● | Depreciation and amortization decreased in the current year. | |
| ● | During the year ended December 31, 2023, the Company recorded impairment of | |
| ● | Interest expense increased in the current year due to increased loans taken by the company to fund operations. | |
| ● | We sustained a net loss of |
Balance Sheet
At December 31, 2023, the Company had a cash position of
About EzFill
EzFill is a leader in the fast-growing mobile fuel industry, with the largest market share in its home state of Florida. Its mission is to disrupt the gas station fueling model by providing consumers and businesses with the convenience, safety, and touch-free benefits of on-demand fueling services brought directly to their locations. For commercial and specialty customers, at-site delivery during downtimes enables operators to begin their daily operations with fully fueled vehicles. For more information, visit www.ezfl.com.
With the number of gas stations in the U.S. continuing to decline, corporate giants such as Shell, Exxon, GM, Bridgestone, Enterprise, and Mitsubishi have recognized the increasing shift in consumer behavior and are investing in the fast growing on-demand mobile fueling industry, in companies such as Booster and Yoshi. As the only company to provide fuel delivery in three verticals – consumer, commercial, and specialty including marine and construction equipment, we believe EzFill is well positioned to capitalize on the growing demand for convenient and cost-efficient mobile fueling options.
Forward Looking Statements
This press release contains “forward-looking statements” Forward-looking statements reflect our current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements, include, but are not limited to, statements contained in this press release relating to our business strategy, our future operating results and liquidity and capital resources outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, our ability to raise capital to fund continuing operations; our ability to protect our intellectual property rights; the impact of any infringement actions or other litigation brought against us; competition from other providers and products; our ability to develop and commercialize products and services; changes in government regulation; our ability to complete capital raising transactions; and other factors relating to our industry, our operations and results of operations. Actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned.
Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We cannot guarantee future results, levels of activity, performance or achievements. The Company assumes no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release except as may be required under applicable securities law.
For further information, please contact:
Investor and Media Contact
Telx, Inc.
Paula Luna
Paula@Telxcomputers.com
Note Regarding Use of Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States (GAAP), we use non-GAAP measures. Adjusted EBITDA is a non-GAAP financial measure which we use in our financial performance analyses. This measure should not be considered a substitute for GAAP-basis measures, nor should it be viewed as a substitute for operating results determined in accordance with GAAP. We believe that the presentation of Adjusted EBITDA, a non-GAAP financial measure that excludes the impact of net interest expense, taxes, depreciation, amortization and stock compensation expense, provides useful supplemental information that is essential to a proper understanding of our financial results. Non-GAAP measures are not formally defined by GAAP, and other entities may use calculation methods that differ from ours for the purposes of calculating Adjusted EBITDA. As a complement to GAAP financial measures, we believe that Adjusted EBITDA assists investors who follow the practice of some investment analysts who adjust GAAP financial measures to exclude items that may obscure underlying performance and distort comparability.
The following is a reconciliation of net loss to the non-GAAP financial measure referred to as Adjusted EBITDA for the three and twelve months ended December 31, 2023 and 2022 (unaudited):
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net loss | $ | (3,427,569 | ) | $ | (6,290,176 | ) | $ | (10,471,889 | ) | $ | (17,505,765 | ) | ||||
| Interest expense, net | 752,922 | 13,802 | 1,719,296 | 19,486 | ||||||||||||
| Depreciation and amortization | 279,049 | 492,514 | 1,108,186 | 1,769,622 | ||||||||||||
| Impairment changes | 105,506 | 2,894,516 | 105,506 | 2,894,516 | ||||||||||||
| Stock compensation | 835,857 | 266,811 | 1,525,146 | 1,412,283 | ||||||||||||
| Adjusted EBITDA | $ | (1,454,235 | ) | $ | (2,622,533 | ) | $ | (6,013,755 | ) | $ | (11,409,858 | ) | ||||
EzFill Holdings, Inc.
Consolidated Statements of Operations
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| REVENUES | ||||||||||||||||
| Revenues | $ | 5,690,746 | $ | 4,858,818 | $ | 23,216,423 | $ | 15,044,721 | ||||||||
| TOTAL REVENUES | 5,690,746 | 4,858,818 | 23,216,423 | 15,044,721 | ||||||||||||
| COSTS & EXPENSES | ||||||||||||||||
| Cost of Sales | 5,316,544 | 4,930,057 | 21,845,574 | 15,218,234 | ||||||||||||
| Operating expenses | 2,837,210 | 5,712,622 | 9,087,223 | 15,543,145 | ||||||||||||
| Depreciation and amortization | 279,049 | 492,514 | 1,108,186 | 1,769,621 | ||||||||||||
| TOTAL COSTS AND EXPENSES | 8,432,803 | 11,135,193 | 32,040,983 | 32,531,000 | ||||||||||||
| OPERATING LOSS | (2,742,057 | ) | (6,276,375 | ) | (8,824,560 | ) | (17,486,279 | ) | ||||||||
| OTHER INCOME AND EXPENSES | ||||||||||||||||
| Interest and other income | 67,410 | 25,621 | 99,127 | 84,603 | ||||||||||||
| Interest expense | (752,922 | ) | (39,422 | ) | (1,719,296 | ) | (98,834 | ) | ||||||||
| Loss on sale of marketable debt securities - net | 0 | 0 | 27,160 | 5,255 | ||||||||||||
| LOSS BEFORE INCOME TAXES | (3,427,569 | ) | (6,290,176 | ) | (10,471,889 | ) | (17,505,765 | ) | ||||||||
| PROVISION FOR INCOME TAXES | - | - | - | - | ||||||||||||
| NET LOSS | $ | (3,427,569 | ) | $ | (6,290,176 | ) | $ | (10,471,889 | ) | $ | (17,505,765 | ) | ||||
| NET LOSS PER SHARE | ||||||||||||||||
| Basic and diluted | $ | (0.77 | ) | $ | (1.90 | ) | $ | (2.79 | ) | $ | (5.30 | ) | ||||
| Basic and diluted weighted average number of common shares outstanding | 4,443,276 | 3,311,842 | 3,753,038 | 3,301,484 | ||||||||||||
EzFill Holdings, Inc. and Subsidiary
Consolidated Balance Sheets
| December 31, 2023 | December 31, 2022 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash | $ | 226,985 | $ | 2,066,793 | ||||
| Investment in debt securities | - | 2,120,082 | ||||||
| Accounts receivable - net | 1,192,340 | 766,692 | ||||||
| Inventory | 134,057 | 151,248 | ||||||
| Prepaids and other | 220,909 | 329,351 | ||||||
| Total Current Assets | 1,774,291 | 5,434,166 | ||||||
| Property and equipment - net | 3,310,187 | 4,589,159 | ||||||
| Operating lease - right-of-use asset | 297,394 | 521,782 | ||||||
| Operating lease - right-of-use asset - related party | 286,397 | - | ||||||
| Deposits | 49,063 | 52,737 | ||||||
| Total Assets | $ | 5,717,332 | $ | 10,597,844 | ||||
| Liabilities and Stockholders’ Equity (Deficit) | ||||||||
| Current Liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 845,275 | $ | 1,256,479 | ||||
| Accounts payable and accrued expenses - related parties | 72,428 | - | ||||||
| Line of credit | - | 1,000,000 | ||||||
| Notes payable - net | 946,228 | 811,516 | ||||||
| Notes payable - related parties - net | 4,802,115 | - | ||||||
| Operating lease liability | 246,880 | 230,014 | ||||||
| Operating lease liability - related party | 72,034 | - | ||||||
| Total Current Liabilities | 6,984,960 | 3,298,009 | ||||||
| Long Term Liabilities | ||||||||
| Notes payable- net | 353,490 | 1,198,380 | ||||||
| Operating lease liability | 69,128 | 316,008 | ||||||
| Operating lease liability - related party | 215,960 | - | ||||||
| Total Long Term Liabilities | 638,578 | 1,514,388 | ||||||
| Total Liabilities | 7,623,538 | 4,812,397 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders’ Equity (Deficit) | ||||||||
| Preferred stock - | - | - | ||||||
| Common stock - | 451 | 334 | ||||||
| Common stock issuable | 26 | - | ||||||
| Additional paid-in capital | 43,410,367 | 40,674,864 | ||||||
| Accumulated deficit | (45,317,050 | ) | (34,845,161 | ) | ||||
| Accumulated other comprehensive loss | - | (44,590 | ) | |||||
| Total Stockholders’ Equity (Deficit) | (1,906,206 | ) | 5,785,447 | |||||
| Total Liabilities and Stockholders’ Equity (Deficit) | $ | 5,717,332 | $ | 10,597,844 | ||||
FAQ
What was EzFill Holdings' revenue for 2023?
How much was the net loss for EzFill Holdings in 2023?
What was the percentage increase in gallons delivered by EzFill Holdings from 2022 to 2023?
What was the rise in the average fuel margin per gallon for EzFill Holdings in 2023?
How many new fleet accounts did EzFill Holdings add in 2023?
