LOTZ - LOTZ STOCK NEWS

CarLotz Stockholders Approve Merger

On December 7, 2022, CarLotz's stockholders approved the merger agreement with Shift Technologies. The merger will see CarLotz become a wholly owned subsidiary of Shift, with the merger expected to close around December 9, 2022. This decision required a majority vote from stockholders as of the record date, October 27, 2022. The merger is anticipated to enhance CarLotz’s vehicle marketplace capabilities, combining resources and technology to streamline sales operations.

CarLotz, a consignment-to-retail used vehicle marketplace (NASDAQ: LOTZ), reported its third quarter 2022 results, noting a net revenue of $50.8 million, down from $68.0 million in Q3 2021. Retail unit sales dropped to 1,375 from 2,490 year-over-year. Finance and insurance revenue decreased to $1.7 million, while gross profit fell to a loss of $0.6 million due to wholesale inventory liquidation. However, retail gross profit per unit (GPU) rose 62% to $1,524. Adjusted EBITDA improved to $(16.3) million compared to $(22.8) million the previous year. Cash reserves stood at $117 million.

CarLotz (NASDAQ: LOTZ) announced enhancements to its consignment-to-retail used vehicle marketplace, introducing a new Driver's Seat Advantage program aimed at improving customer service. This program offers a 12-Month/12,000-Mile Limited Warranty, a low price match guarantee, and a 7-Day/400-Mile return policy. The press release emphasizes the benefits of consignment, allowing sellers to earn more than trade-in value with a flat fee structure, quick sales, and hassle-free transactions. CarLotz aims to transform the used car experience by prioritizing value and service.

CarLotz, Inc. (Nasdaq: LOTZ) has introduced the Driver’s Seat Advantage program, enhancing its consignment model for used car buyers. The program includes a unique 12-Month/12,000-Mile Limited Warranty, a Low-Price Match guarantee, and a 7-Day/400-Mile Return Policy. These features aim to improve the customer experience and reflect CarLotz's commitment to customer service. The initiative is part of CarLotz's strategy to lead the used vehicle marketplace, providing customers with confidence when purchasing vehicles online or in-hub.

Shift Technologies and CarLotz announced a definitive agreement for a stock-for-stock merger, creating a leading omnichannel auto retailer. This strategic combination leverages complementary geographic footprints, with Shift's strong West Coast presence and CarLotz's mid-Atlantic stores. The merged entity is projected to have a cash position of approximately $125 million. Upon completion, CarLotz shareholders will receive around 0.692158 shares of Shift stock for each share of CarLotz, resulting in 52.9% ownership for Shift's equity holders and 47.1% for CarLotz's. Closing is expected in Q4 2022.

CarLotz reported a 51% revenue growth to $76.5 million for Q2 2022, up from $50.8 million in Q2 2021. Retail unit sales increased by 21% to 2,421, while finance & insurance revenue surged 80% to $3.2 million. However, gross profit dropped to $1.5 million from $4.2 million in the same quarter last year. The net loss was $(34.9) million, translating to $(0.31) per diluted share, compared to $(7.2) million or $(0.06) per diluted share in Q2 2021. Additionally, a merger agreement with Shift Technologies was announced, expecting closure in Q4 2022.

CarLotz, Inc. (NASDAQ: LOTZ) has rescheduled its second quarter fiscal 2022 earnings results conference call to August 9, 2022. The Company will report financial results after market hours and hold a call at 5:00 p.m. (ET) to discuss the business update. The U.S. toll-free dial-in is 1-800-715-9871, while the international number is 1-646-307-1963, and the Conference ID is 7858530. A live webcast will also be available on the investor relations page of their website. An audio-only replay will be accessible for one year post-call.

CarLotz, Inc. (LOTZ) will release its second quarter fiscal 2022 results on August 8, 2022, after the U.S. market closes. A conference call for investors will occur at 5:00 PM ET to discuss the results. Participants must register for the call to receive a unique PIN, while listen-only access is available via the company’s website. CarLotz operates a consignment-to-retail used vehicle marketplace, leveraging proprietary technology to enhance vehicle sales by providing corporate partners with performance metrics and analytics.

CarLotz, Inc. (NASDAQ: LOTZ) has appointed Nanxi Liu to its Board of Directors effective July 1, 2022. Liu, currently Co-CEO of Blaze Technology and CFO of Nanoly Bioscience, brings extensive experience in technology and innovation. Her perspective is expected to enhance the Board's oversight. The company also announced the resignation of Sarah Kauss from the Board, which was not related to any operational disagreements. As a consignment-to-retail used vehicle marketplace, CarLotz aims to improve vehicle buying and selling experiences through technology.