2023 Revenue increased 22.5% compared to
2022
Company Reiterates 2024 Revenue Expectation of
$33 Million, a 118% Increase Over
2023
KISSIMMEE, Fla., May 3, 2024
/PRNewswire/ -- 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, and Ford Mustangs,
announced today its financial results for the year ended
December 31, 2023.
Business Highlights
- Revenue of $15.1 million for the
full year 2023, an increase of 22.5% over the prior year
period.
- Gross profit of $4.2 million for
the full year 2023, an increase of 150% over the prior year
period.
- Net income of $(1.6) million for
the full year 2023, compared to $(1.4)
million in 2022.
- Adjusted EBITDA of $1.1 million
for the full year 2023, compared to $(1.3)
million in 2022.
- Recently completed acquisition of certain assets of Brand New
Muscle Car, providing an opportunity to introduce classic American
muscle cars to its product line up
- Reiterates 2024 revenue guidance of at least $33 million for the full year, a 118% increase
compared to 2022
Management Commentary
Scott Wallace, CEO & Founder,
commented on the year's results, "2023 was a key period in ECD's
history with the Company beginning trading on the Nasdaq exchange
in December. Over the course of our Company's history, we have
built over 500 custom cars and generated over $84 million in lifetime revenues. Our 100,000
square foot manufacturing facility currently has 2 production lines
running and we are working to finalize our third production line to
focus on classic Ford Mustangs following our recent acquisition of
assets from Brand New Muscle Car. We can scale our existing
footprint to maximize the business model while also looking at
growth opportunities in the larger classic car ecosystem. We have
continuously operated the Company to produce positive cash flow and
will continue a disciplined approach to capital allocation whether
those growth opportunities are organic or inorganic.
"ECD has three powerful paths toward profitable growth:
maximizing production efficiency, consolidating the luxury classic
car market, and building an umbrella luxury auto brand. We estimate
this larger ecosystem represents an addressable market of
$15 billion covering manufacturing,
storage, brokerage and financial services. We believe that by
filling the factory, building out our product base, and leveraging
our respected brand, ECD will be able to build on our current
leadership in the resto-mod industry to become the trusted luxury
auto partner for discerning customers."
Financial Results
During the year ended December 31,
2023, overall revenue totaled $15.1
million, or an increase of 22.5%, compared to $12.3 million in the previous year. The increase
was primarily due to an increase in average selling price per
vehicle by $25,075 and increased
production due to efficiency improvements.
Gross profit increase to $4.3
million or 28% of revenue compared to $1.7 million, or 14% or revenue in 2022.
Operating expenses increased to $5.8
million in 2023 compared to $3.6
million in 2022. The increase in operating expenses was
primarily due to the increase in general and administrative
expenses related to the Company's growth and expansion of
operations as well as costs related to being a public company.
Operating income improved to $(1.6)
million in 2023 from $(1.9)
million in 2022. The increase was primarily due to improved
gross margins due to a decrease in per truck material costs, and
efficiencies in the build process.
Net loss for 2023 was ($1.6)
million compared to a net loss of ($1.4) million in 2022. Earnings per diluted
share were $(0.09) in 2023 compared
to $(0,06) in 2022. The change in net
income was primarily the result of interest expense affiliated with
a letter of credit and convertible note.
Adjusted EBITDA, shown in tables below, increased to
$1.1 million in 2023 from a loss of
$(1.3) million in 2022.
Cash and equivalents on December 31,
2023 were $8.1 million,
compared to $3.5 million on
December 31, 2022. Additionally, the
company had $10.7 million convertible
notes in long-term liabilities at year end.
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 the Ford Mustang. 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 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.
ECD AUTOMOTIVE
DESIGN, INC
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Year Ended December
31
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
As
Restated
|
|
|
|
|
|
|
|
|
Revenue, net
|
|
$
|
15,123,596
|
|
|
$
|
12,343,745
|
|
Cost of goods sold
(exclusive of depreciation and amortization expense shown
below)
|
|
|
10,874,358
|
|
|
|
10,648,868
|
|
Gross profit
|
|
|
4,249,238
|
|
|
|
1,694,877
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
|
487,586
|
|
|
|
299,388
|
|
General and
administrative expenses
|
|
|
5,240,230
|
|
|
|
3,285,140
|
|
Depreciation and
amortization expenses
|
|
|
156,962
|
|
|
|
72,303
|
|
Total operating
expenses
|
|
|
5,884,778
|
|
|
|
3,656,831
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(1,635,006)
|
|
|
|
(1,961,954)
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(653,429)
|
|
|
|
(19,000)
|
|
Loss on sale of
asset
|
|
|
-
|
|
|
|
(56,454)
|
|
Resale commissions
income
|
|
|
86,370
|
|
|
|
539,659
|
|
Other income,
net
|
|
|
85,142
|
|
|
|
38,699
|
|
Total other (expense)
income, net
|
|
|
(481,917)
|
|
|
|
502,904
|
|
Loss before income tax
benefit
|
|
|
(2,117,457)
|
|
|
|
(1,459,050)
|
|
Income tax
benefit
|
|
|
515,444
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(1,602,013)
|
|
|
$
|
(1,459,050)
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
share, basic and diluted
|
|
$
|
(0.09)
|
|
|
$
|
(0.06)
|
|
Weighted average number
of common shares outstanding, basic and diluted
|
|
|
24,875,667
|
|
|
|
24,000,000
|
|
ECD AUTOMOTIVE
DESIGN, INC
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
As
Restated
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
8,134,211
|
|
|
$
|
3,514,882
|
|
Inventories
|
|
|
11,799,304
|
|
|
|
6,065,612
|
|
Other
receivable
|
|
|
-
|
|
|
|
209,810
|
|
Prepaid and other
current assets
|
|
|
34,006
|
|
|
|
68,419
|
|
Total current
assets
|
|
|
19,967,521
|
|
|
|
9,858,723
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
968,677
|
|
|
|
570,824
|
|
Right-to-use
asset
|
|
|
3,763,294
|
|
|
|
3,896,608
|
|
Deferred tax
asset
|
|
|
515,444
|
|
|
|
-
|
|
Deposit
|
|
|
77,686
|
|
|
|
75,986
|
|
TOTAL ASSETS
|
|
$
|
25,292,622
|
|
|
$
|
14,402,141
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE
PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
768,812
|
|
|
$
|
486,816
|
|
Accrued
expenses
|
|
|
687,000
|
|
|
|
193,424
|
|
Deferred
Revenue
|
|
|
17,596,512
|
|
|
|
14,166,030
|
|
Lease liability,
current
|
|
|
314,903
|
|
|
|
203,123
|
|
Other
payable
|
|
|
1,533,815
|
|
|
|
362,234
|
|
Total current
liabilities
|
|
|
20,901,038
|
|
|
|
15,411,627
|
|
|
|
|
|
|
|
|
|
|
Loan payable
|
|
|
-
|
|
|
|
500,000
|
|
Lease liability,
non-current
|
|
|
3,727,182
|
|
|
|
3,889,658
|
|
Convertible
note
|
|
|
10,683,452
|
|
|
|
-
|
|
Total
Liabilities
|
|
|
35,311,672
|
|
|
|
19,801,285
|
|
|
|
|
|
|
|
|
|
|
Redeemable preferred
stock, $0.0001 par value, 20,000,000 authorized shares; 25,000
shares issued and outstanding as of December 31, 2023 and no shares
issued and outstanding as of December 31, 2022
|
|
|
3
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
deficit
|
|
|
|
|
|
|
|
|
Common stock, $0.0001
par value, 1,000,000,000 authorized shares; 31,874,662 shares and
24,000,000 shares issued and outstanding as of December 31, 2023
and 2022, respectively
|
|
|
3,187
|
|
|
|
2,400
|
|
Additional paid-in
capital
|
|
|
-
|
|
|
|
2,474
|
|
Accumulated
deficit
|
|
|
(10,022,240)
|
|
|
|
(5,404,018)
|
|
Total Stockholders'
Deficit
|
|
|
(10,019,053)
|
|
|
|
(5,399,144)
|
|
TOTAL LIABILITIES,
REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
|
|
$
|
25,292,622
|
|
|
$
|
14,402,141
|
|
Adjusted EBITDA -
Reconciliation of Net Income (loss) to
|
|
|
|
For the year ended
December 31,
|
|
|
2023
|
|
|
2022
|
Net loss
|
$
|
(1,601,479)
|
|
|
$
|
(1,459,584)
|
Excluding:
|
|
|
|
|
|
|
Interest expense,
net
|
|
653,429
|
|
|
|
19,000
|
Income tax (benefit)
expense
|
|
515,444
|
|
|
|
|
Other income,
net
|
|
85,142
|
|
|
|
38,699
|
Depreciation and
amortization
|
|
156,962
|
|
|
|
72,303
|
Transaction
costs
|
|
1,285,000
|
|
|
|
|
Adjusted
EBITDA
|
|
1,094,498
|
|
|
|
(1,329,582)
|
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SOURCE ECD Automotive Design