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, 2022.
4Q22 and
FY 2022 Highlights (in US$, except gallons
delivered)
|
|
4Q 2022 |
|
|
4Q 2021 |
|
|
Year 2022 |
|
|
Year 2021 |
|
Financial
Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
4,858,819 |
|
|
|
1,997,941 |
|
|
|
15,044,721 |
|
|
|
7,233,957 |
|
Net loss |
|
|
(6,290,176 |
) |
|
|
(3,653,703 |
) |
|
|
(17,505,765 |
) |
|
|
(9,383,397 |
) |
Adjusted EBITDA* |
|
|
(2,622,533 |
) |
|
|
(2,685,180 |
) |
|
|
(11,409,858 |
) |
|
|
(5,845,504 |
) |
Operating
Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gallons Delivered |
|
|
1,238,923 |
|
|
|
577,475 |
|
|
|
3,614,844 |
|
|
|
2,308,764 |
|
Avg. Fuel Margin per
Gallon |
|
$ |
0.43 |
|
|
$ |
0.40 |
|
|
$ |
0.45 |
|
|
$ |
0.37 |
|
* See end of this press release for reconciliation to US
GAAP
Commenting on the quarterly and full year
results, Mike McConnell, EzFill’s Chief Executive Officer, stated,
“2022 was our first full calendar year as a public company and I’m
pleased to be able to say that we accomplished nearly all the key
goals we set out to accomplish. We grew revenue more than 100%
during the year. We significantly grew our fleet customer count
from just 14 a year ago by adding more than 100 new accounts in
2022, which dramatically reduced the prior concentration of revenue
in a single customer. Some of these new accounts have multiple
locations. We have continued to grow our fleet business in 2023 and
as previously announced, we added 19 new fleets in January and
February. We significantly increased our average margin per gallon
in 2022 despite a volatile year for gas prices and a competitive
business environment. The number of trucks in our fleet grew during
2022 from 12 to 40. Finally, we acquired the mobile fueling
business of Palmdale Oil during 2022 that has been fully integrated
and the relationship with Palmdale has facilitated our expansion
throughout Florida.”
“During 2022, we expanded beyond our Miami base
into West Palm Beach, Orlando, Tampa and Jacksonville. We launched
the innovative EzFill Pay program to enable the use of popup gas
stations and we are launching in selected Miami zip codes our
EzFill NOW program, where customers can now opt for guaranteed fuel
delivery within either a 30 minute or 60 minute time frame. We were
recognized by the Governor’s office for our efforts during the
Hurricane Ian recovery period. More recently, we signed an
agreement with South Florida Motorsports to provide mobile fuel
services for the 2023 Formula 1 Miami Grand Prix.”
Net results for the quarter and the year were
largely affected by impairment charges related to goodwill and
other intangible assets. The largest portion of the impairment
related to the license of a technology that is not being used and
as such is not expected to generate future revenue. Other
impairments related primarily to goodwill and other intangibles as
a result of the significant decline in the Company’s stock price
and market capitalization.
“As we look forward,” McConnell continued, “We
hope to continue the strong growth in fleet customers. We are also
planning to create more innovative programs to grow our residential
business. We significantly reduced our operating costs in the
fourth quarter, and since then we have been focused on improving
gross profit with a combination of pricing and fees as well as
driver and fuel purchasing cost efficiencies. We will be
opportunistic about adding trucks if needed, and with focused
marketing efforts and IT support, we plan to efficiently expand the
growth of each of our verticals: fleet, consumer and specialty,
including marine.”
Fourth Quarter 2022 Operational
Highlights
- During the fourth quarter of 2022,
the Company reported revenue of $4.9 million, up from $2.0 million
in the same period last year, an increase of 143% due to higher
average fuel prices per gallon and increased gallons delivered.
Total gallons delivered in the fourth quarter of 2022 were 1.24
million, an increase of 115% from the prior year period.
- Operating expenses were $2.8
million in the fourth quarter of 2022, as compared to $3.4 million
in the prior year period, a net decrease of $0.6 million or 17% and
reflects the cost efficiencies realized in the fourth quarter.
Operating expenses were also down sequentially compared to the
third quarter total $3.5 million.
- Depreciation and amortization of
$0.5 million in the fourth quarter of 2022 was 74% higher than the
same period of the prior year and reflects the increase in the
truck fleet size and the licensing of technology.
- Impairment charges as noted above included goodwill and other
intangibles as well as fixed assets.
- Interest expense was higher in the
fourth quarter year over year due to borrowings on the line of
credit.
- The net loss in the fourth quarter
was ($6.3) million, compared to $(3.7) million in the same period
of the prior year.
- Adjusted EBITDA loss in the fourth
quarter 2022 was $(2.6) million as compared to Adjusted EBITDA loss
of $(2.7) million in the fourth quarter of 2021. The adjusted
EBITDA loss for Q4 approximates the cash used in operations during
the quarter. The improvement in the fourth quarter of 2022 reflects
the reductions in operating expenses realized during the
quarter.
2022 Fiscal Year Financial Results
- For the twelve-month period ended December 31, 2022, revenue
increased to $15.0 million from $7.2 million in 2021, a 108%
increase. The increase was due to an increase of 57% in total
gallons delivered as well as an increase in the average price per
gallon.
- Operating expenses were $12.7 million for 2022, as compared to
$8.1 million in 2021, representing a 56% increase. The increases
were mainly in payroll, sales and marketing, insurance, technology,
and public company expenses.
- Depreciation and amortization for the full year of $1.8 million
was up from $0.9 million in the same period of the prior year with
the increase mainly due to purchases of delivery vehicles.
- Interest expense decreased in 2022 due to repayment of pre-IPO
debt.
- The net loss for 2022 was $(17.5) million, compared to $(9.3)
million in the same period of the prior year.
- Adjusted EBITDA loss for 2022 was
$(11.4) million as compared to Adjusted EBITDA loss of $(5.8)
million in 2021. The increase in Adjusted EBITDA loss reflects
significant spending on infrastructure in the current year to grow
the business.
Balance Sheet
At December 31, 2022, the Company had a cash position of $4.2
million, compared with $16.9 million at year end 2021. The Company
had outstanding borrowings under its credit line of $1.0
million.
Earnings Conference Call Information
Date: |
Thursday, March 16, 2023 |
Time: |
4:30 p.m. ET |
Call: |
1-877-545-0320 (US Toll Free) |
|
1-973-582-0002 (International) |
Access Code: |
157487 |
Webcast: |
A live
webcast will be available and can be accessed from the Investors’
section of the Company’s website at www.ezfl.com or by
clicking here. |
|
|
All interested parties are invited to
participate. Please connect at least 15 minutes prior to the
conference call to ensure adequate time for any software download
that may be required to join the webcast.
For those unable to join the live webcast, a
replay will be available until 11:59 p.m. ET on Thursday, March 30,
2023, at 1-877-481-4010 (US) or 1-919-882-2331, replay pin number
47851. Additionally, to access the archived webcast, please visit
the Investors section of the Company’s website or click
here.
About EzFill
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. As the only company to
provide fuel delivery in three vertical segments - consumer,
commercial, and specialty including marine, we believe EzFill is
well positioned to capitalize on the growing demand for convenient
and cost-efficient mobile fueling options.
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.
Forward Looking StatementsThis
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.
For further information, please contact:
Investor and Media ContactJohn
C. McNamaraTraDigital IRjohn@tradigitalir.com
Note Regarding Use of Non-GAAP Financial
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, 2022 and 2021
(unaudited):
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net loss |
|
$ |
(6,290,176 |
) |
|
$ |
(3,653,703 |
) |
|
$ |
(17,505,765 |
) |
|
$ |
(9,383,397 |
) |
Interest expense, net |
|
|
13,802 |
|
|
|
821 |
|
|
|
19,486 |
|
|
|
768,985 |
|
Depreciation and
amortization |
|
|
492,514 |
|
|
|
283,172 |
|
|
|
1,769,622 |
|
|
|
872,834 |
|
Impairment charges |
|
|
2,894,516 |
|
|
|
- |
|
|
|
2,894,516 |
|
|
|
- |
|
Stock compensation |
|
|
266,811 |
|
|
|
684,531 |
|
|
|
1,412,283 |
|
|
|
1,896,074 |
|
Adjusted EBITDA |
|
$ |
(2,622,533 |
) |
|
$ |
(2,685,180 |
) |
|
$ |
(11,409,858 |
) |
|
$ |
(5,845,504 |
) |
EzFill Holdings,
Inc. |
Consolidated
Statements of Operations |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
4,858,818 |
|
|
$ |
1,997,941 |
|
|
$ |
15,044,721 |
|
|
$ |
7,233,957 |
|
TOTAL REVENUES |
|
|
4,858,818 |
|
|
|
1,997,941 |
|
|
|
15,044,721 |
|
|
|
7,233,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS & EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
4,930,057 |
|
|
|
1,969,644 |
|
|
|
15,218,234 |
|
|
|
7,027,274 |
|
Operating expenses |
|
|
2,818,106 |
|
|
|
3,398,007 |
|
|
|
12,648,629 |
|
|
|
8,102,934 |
|
Depreciation and amortization |
|
|
492,514 |
|
|
|
283,172 |
|
|
|
1,769,621 |
|
|
|
872,834 |
|
Impairment of goodwill and intangible assets |
|
|
2,636,402 |
|
|
|
- |
|
|
|
2,636,402 |
|
|
|
- |
|
Impairment of fixed assets |
|
|
258,114 |
|
|
|
- |
|
|
|
258,114 |
|
|
|
- |
|
TOTAL COSTS AND EXPENSES |
|
|
11,135,193 |
|
|
|
5,650,823 |
|
|
|
32,531,000 |
|
|
|
16,003,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING LOSS |
|
|
(6,276,375 |
) |
|
|
(3,652,882 |
) |
|
|
(17,486,279 |
) |
|
|
(8,769,085 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME AND EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income |
|
|
25,621 |
|
|
|
6,899 |
|
|
|
84,603 |
|
|
|
161,572 |
|
Interest expense |
|
|
(39,422 |
) |
|
|
(7,720 |
) |
|
|
(104,089 |
) |
|
|
(775,884 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAXES |
|
|
(6,290,176 |
) |
|
|
(3,653,703 |
) |
|
|
(17,505,765 |
) |
|
|
(9,383,397 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(6,290,176 |
) |
|
$ |
(3,653,703 |
) |
|
$ |
(17,505,765 |
) |
|
$ |
(9,383,397 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.24 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.66 |
) |
|
$ |
(0.46 |
) |
Basic and diluted weighted average number of common shares
outstanding |
|
|
26,494,736 |
|
|
|
26,115,941 |
|
|
|
26,411,874 |
|
|
|
20,199,444 |
|
EzFill Holdings,
Inc.Consolidated Balance
Sheets(Unaudited)
|
|
December 31, 2022 |
|
|
December 31, 2021 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,066,793 |
|
|
$ |
13,561,266 |
|
Investment in debt securities |
|
|
2,120,082 |
|
|
|
3,362,880 |
|
Accounts receivable, net of allowance for doubtful accounts of $0
and $5,665, respectively |
|
|
766,692 |
|
|
|
100,194 |
|
Prepaid expenses and other |
|
|
329,351 |
|
|
|
186,349 |
|
Inventory |
|
|
151,248 |
|
|
|
46,343 |
|
Total Current Assets |
|
|
5,434,166 |
|
|
|
17,257,032 |
|
|
|
|
|
|
|
|
|
|
Fixed assets, net of
accumulated depreciation of $1,134,680 and $284,216,
respectively |
|
|
4,589,159 |
|
|
|
2,286,320 |
|
Goodwill and other indefinite
lived intangibles |
|
|
- |
|
|
|
129,983 |
|
Other intangible assets, net
of accumulated amortization of $0 and $1,205,379, respectively |
|
|
- |
|
|
|
3,207,327 |
|
Operating lease right of use
asset |
|
|
521,782 |
|
|
|
- |
|
Other assets |
|
|
52,737 |
|
|
|
43,456 |
|
Total Assets |
|
$ |
10,597,844 |
|
|
$ |
22,924,118 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
(Deficit) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
1,256,479 |
|
|
$ |
579,365 |
|
Loans payable |
|
|
811,516 |
|
|
|
178,871 |
|
Borrowings under revolving line of credit |
|
|
1,000,000 |
|
|
|
- |
|
Operating lease liabilities |
|
|
230,014 |
|
|
|
- |
|
Total Current Liabilities |
|
|
3,298,009 |
|
|
|
758,236 |
|
|
|
|
|
|
|
|
|
|
Loans payable - net of current
portion |
|
|
1,198,380 |
|
|
|
297,436 |
|
Operating lease liabilities,
net of current portion |
|
|
316,008 |
|
|
|
- |
|
Total Liabilities |
|
|
4,812,397 |
|
|
|
1,055,672 |
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity
(Deficit) |
|
|
|
|
|
|
|
|
Preferred stock, $.0001 and $.0001 par value; 50,000,000 and
50,000,000 shares authorized; -0- and -0- shares issued and
outstanding |
|
|
- |
|
|
|
- |
|
Common stock, $.0001 and $.0001 par value; 500,000,000 and
500,000,000 shares authorized; 26,685,392 and 26,243,474 shares
issued and outstanding at December 31, 2022 and December 31, 2021,
respectively |
|
|
2,669 |
|
|
|
2,624 |
|
Additional paid in capital |
|
|
40,672,529 |
|
|
|
39,210,291 |
|
Accumulated deficit |
|
|
(34,845,161 |
) |
|
|
(17,339,396 |
) |
Accumulated other comprehensive loss |
|
|
(44,590 |
) |
|
|
(5,073 |
) |
Total Stockholders’ Equity (Deficit) |
|
|
5,785,447 |
|
|
|
21,868,446 |
|
Total Liabilities and Stockholders’ Equity (Deficit) |
|
$ |
10,597,844 |
|
|
$ |
22,924,118 |
|
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