ECD Auto Design Reports Third Quarter 2024 Financial Results; Revenues Increase 30% to $6.4 Million
Year-To-Date Revenue Growth of 35% and Gross Profit dollars increased 69%; Continued Execution of Growth Strategy to Increase Product Line Up and Fill the Factory
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 35% increase in year-to-date 2024 revenues to a record $19.9 million and strong gross margins of 31.2% in the third quarter. As we move ahead, we intend to continue scaling our existing footprint and fill the factory, while also looking at growth opportunities in the larger classic car ecosystem.
"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 30% to $6.4 million in the third quarter of 2024, compared to $5.0 million in the third quarter of 2023. The increase was primarily due increased volume, higher average selling price, increased upgrades and increased used vehicle sales versus a year ago.
Third quarter 2024 gross profit was $2.0 million, or 31.1% of revenue, compared to $1.0 million, or 19.4% of revenue in the third quarter of 2023.
Operating expenses were $2.6 million in the third quarter of 2024, compared to $1.3 million in the third quarter of 2023. The increase in operating expenses was primarily due to higher general and administrative expenses related to the ongoing costs of being a public company and the restatement of financials with our new auditing firm.
Operating loss was ($0.6) million, compared to operating loss of ($0.3) million in the third quarter of 2023. The decline was primarily related to higher expenses in 2024, including the restatement costs, compared to 2023.
Net loss for the third quarter 2024 was ($2.6 million), or $(0.08) per diluted share, compared to a net loss of ($0.2) million, or $0.01 per diluted share in the third quarter of 2023.
Adjusted EBITDA was a loss of ($0.5) million in the third quarter 2024, compared to an Adjusted EBITDA loss of ($0.3) million in the third quarter of 2023.
Cash and equivalents on September 30, 2024 were $3.6 million, as compared to $8.1 million on December 31, 2023.
Nine Months Ended September 30, 2024 Financial Results
Revenue increased 35% to a record $19.9 million for the nine months ended September 30, 2024, compared to $14.7 million for the nine months ended September 30, 2023. The increase was primarily due to increased volume, higher average selling price and increased used vehicle sales versus the same period in 2023.
For the nine months ended September 30, 2024 gross profit increased to $5.6 million, or 28.1% of revenue, compared to $3.3 million, or 22.5% of revenue for the nine months ended September 30, 2023.
Operating expenses were $7.8 million for the nine months ended September 30, 2024, compared to $3.9 million for the nine months ended September 30, 2023. The increase in operating expenses was primarily due to higher general and administrative expenses related to the ongoing costs of being a public company and the costs associated 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.
Operating loss was ($2.2) million, compared to operating loss of ($0.6) million for the nine months ended September 30, 2023. The decline was primarily due to increased costs in the first year as a public company.
Net loss for the nine months ended September 30, 2024 was ($7.5 million), or $(0.23) per diluted share, compared to a net loss of ($0.5) million, or $(0.02) per diluted share for the nine months ended September 30, 2023.
Adjusted EBITDA 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.
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
[email protected]
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, $0.0001 par value, 20,000,000 authorized shares; 6,500 and 25,000 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | 1 | 3 | ||||||
| Stockholders' deficit: | ||||||||
| Common stock, $0.0001 par value, 1,000,000,000 authorized shares; 36,199,662 shares and 31,874,662 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | 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 | ) | ||||
