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KISSIMMEE, Fla., May 21, 2025 (GLOBE NEWSWIRE) -- U.S. Auto Manufacturer 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 first quarter ended March 31, 2025.
Financial results and comparisons are based on re-stated numbers for 2023 and the first half of 2024.
First Quarter 2025 Highlights
- Revenues were $6.4 million in the first quarter of 2025, compared to $7.0 million in the same year-ago quarter; lower unit volume was slightly offset by higher unit prices, as the company completed a handful of more technical builds during the quarter.
- Gross profit was $1.8 million in the first quarter of 2025, compared to $1.5 million in the same year-ago quarter. Gross margin of 27.5% expanded 570 basis points from a year ago.
- Net loss was ($2.7) million in the first quarter of 2025, compared to a net loss of ($2.9) million in same year-ago quarter.
- Adjusted EBITDA (a non-GAAP financial measure) was a loss of ($0.9) million in the first quarter of 2025, compared to an Adjusted EBITDA loss of ($0.4) million in the same year-ago quarter. In the first quarter of 2025 there were approximately $0.3 million of non-recurring expenses incurred in connection with the restatement of financials for 2022, 2023 and the first and second quarters of 2024.
Management Commentary
Speaking on the results for the quarter, Scott Wallace, CEO & Co-Founder of ECD, stated, "The end of the first quarter of 2025 represents the first full year-over-year period as a public company for ECD Automotive, and what an experience it has been, with many lessons learned along the way. During the quarter, we titled 20 vehicles at an average price of $320,000, resulting in revenue of $6.4 million, a sequential increase over the prior quarter. This quarter's average price compares favorably to last year's average price of $300,000 on 23 vehicles and has contributed to gross margins amongst the top in the industry.
"Our first quarter results demonstrate that ECD can produce industry-leading unit economics while building custom, one-of-one classic luxury vehicles. We can achieve this level of gross profitability through our dedication to continually evolving an immersive, luxury customer design journey that ignites the creativity of our customer base. Within our customer design journey, we constantly integrate new customization options that allow for additional individuality while bolstering our margin profile as a business. With the signing of the largest custom order contract in our company's history, a Jaguar E-Type GTO at $620,000, our design process has established a robust foundation that is able to deliver unit economics on par with larger exotic car manufacturers.
"As the only domestic producer of one-of-one classic luxury restomods within a manufacturing line, we are uniquely positioned in the current market environment and believe we have a distinct advantage versus many of our peers who lack our manufacturing capabilities or ability to customize. Strong customer demand persists across our production lines, and we continue to see opportunities to enhance profitability through additional customization and operational efficiencies.
"While we've made significant progress scaling operations to date, adding additional channels to fill the factory and establishing a strong process that encourages accretive customization, we are challenged by the company's current balance sheet. We are working diligently to improve our liquidity profile through various channels, including rationalizing public company expenses and leaning into businesses that generate cash quicker, like our retail strategy. We continue to have strong support from our convertible note holder and recently completed a partial debt-to-preferred equity swap. We believe such actions will help right size the company's balance sheet on a go-forward basis."
First Quarter 2025 Financial Results
Revenues were $6.4 million in the first quarter of 2025, compared to $7.0 million in the first quarter of 2024. Lower unit volume was slightly offset by higher unit prices, as the company completed a handful of more technical builds during the quarter.
Gross profit was $1.8 million in the first quarter of 2025, up from $1.5 million in the first quarter of 2024. Gross margin of 27.5% expanded 570 basis points from the year ago quarter driven by an increase in average selling price.
Operating expenses were $3.7 million in the first quarter of 2025, compared to $2.5 million in the first quarter of 2024. 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 ($2.0) million, compared to operating loss of ($1.0) million in the first quarter of 2024. The decline was primarily related to higher expenses in the quarter, including the restatement costs.
Net loss for the first quarter 2025 was ($2.7) million, or ($0.08) per diluted share, compared to a net loss of ($2.9) million, or ($0.09) per diluted share in the first quarter of 2024.
Adjusted EBITDA was a loss of ($0.9) million in the first quarter 2025, compared to an Adjusted EBITDA loss of ($0.4) million in the first quarter of 2024.
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 67 talented craftsmen and technicians, who hold a combined 66 ASE and three 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, 2024 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
[email protected]
| ECD AUTOMOTIVE DESIGN, INC. CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Revenue | $ | 6,421,371 | $ | 6,989,746 | |||
| Cost of goods sold (exclusive of depreciation expense shown below) | 4,656,799 | 5,464,113 | |||||
| Gross profit | 1,764,572 | 1,525,633 | |||||
| Operating expenses | |||||||
| Advertising and marketing expenses | 290,879 | 343,409 | |||||
| General and administrative expenses | 3,393,542 | 2,143,550 | |||||
| Provision for credit losses | 9,295 | - | |||||
| Depreciation and amortization expenses | 25,364 | 42,752 | |||||
| Total operating expenses | 3,719,080 | 2,529,711 | |||||
| Loss from operations | (1,954,508 | ) | (1,004,078 | ) | |||
| Other income (expense) | |||||||
| Interest expense | (1,856,979 | ) | (1,136,300 | ) | |||
| Change in fair value of warrant liabilities | 476,583 | (165,361 | ) | ||||
| Change in fair value of conversion option liabilities | 272,479 | (60,665 | ) | ||||
| Foreign exchange loss | 6,509 | (4,704 | ) | ||||
| Resale commissions income | 44,920 | - | |||||
| Other income (expense), net | (139,321 | ) | 43,526 | ||||
| Total other (expense) income, net | (1,195,809 | ) | (1,323,504 | ) | |||
| Loss before income taxes | (3,150,317 | ) | (2,327,582 | ) | |||
| Income tax benefit (expense) | 400,000 | (532,280 | ) | ||||
| Net loss | $ | (2,750,317 | ) | $ | (2,859,862 | ) | |
| Net income (loss) per common share, basic and diluted | $ | (0.08 | ) | $ | (0.09 | ) | |
| Weighted average number of common shares outstanding, basic and diluted | 35,341,529 | 31,896,640 | |||||
| ECD AUTOMOTIVE DESIGN, INC. CONSOLIDATED BALANCE SHEETS | ||||||||
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (unaudited) | (audited) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 677,473 | $ | 1,476,850 | ||||
| Accounts receivable, net | 157,194 | 45,022 | ||||||
| Inventories | 10,439,696 | 11,181,806 | ||||||
| Prepaid and other current assets | 458,098 | 239,864 | ||||||
| Total current assets | 11,732,461 | 12,943,542 | ||||||
| Goodwill | 1,291,098 | 1,291,098 | ||||||
| Property and equipment, net | 460,764 | 483,878 | ||||||
| Intangible asset, net | 9,750 | 12,000 | ||||||
| Right-of-use assets | 3,312,207 | 3,404,983 | ||||||
| Deposit | 60,200 | 60,200 | ||||||
| TOTAL ASSETS | $ | 16,866,480 | $ | 18,195,701 | ||||
| LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,220,510 | $ | 2,494,664 | ||||
| Accrued expenses | 961,500 | 1,686,598 | ||||||
| Deferred revenue | 10,488,363 | 11,802,825 | ||||||
| Lease liability, current | 356,942 | 353,612 | ||||||
| Floor plan payable | 660,000 | 1,212,000 | ||||||
| Other payable | 1,202,481 | 1,364,222 | ||||||
| Note payable | 1,363,806 | - | ||||||
| Total current liabilities | 17,253,602 | 18,913,921 | ||||||
| Lease liability, non-current | 3,284,728 | 3,373,571 | ||||||
| Convertible notes, net of debt discount | 17,238,921 | 14,085,932 | ||||||
| Warrant liabilities, at fair value | 43,333 | 486,559 | ||||||
| Conversion option, at fair value | 89,729 | 313,191 | ||||||
| Total liabilities | 37,910,313 | 37,173,174 | ||||||
| Commitments and contingencies (Note 14) | - | - | ||||||
| Redeemable preferred stock, $0.0001 par value, 20,000,000 authorized shares; 25,000 and 6,500 shares issued and outstanding as of March 31, 2025 and December 31, 2023, respectively | 3 | 1 | ||||||
| Stockholders' deficit: | ||||||||
| Common stock, $0.0001 par value, 1,000,000,000 authorized shares; 35,385,662 shares and 36,499,662 shares issued and outstanding as of March 31, 2025 and December 31, 2023, respectively | 3,539 | 3,650 | ||||||
| Additional paid-in capital | 3,264,321 | 2,576,498 | ||||||
| Other comprehensive income | (10,453 | ) | (6,696 | ) | ||||
| Accumulated deficit | (24,301,243 | ) | (21,550,926 | ) | ||||
| Total Stockholders' Deficit | (21,043,836 | ) | (18,977,474 | ) | ||||
| TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT | $ | 16,866,480 | $ | 18,195,701 | ||||
| ECD AUTOMOTIVE DESIGN, INC. Non-GAAP Reconciliation - Reconciliation of Net Income (loss) to Adjusted EBITDA | ||||||||
| For the three months ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Net (loss) income | $ | (2,750,317 | ) | $ | (2,859,862 | ) | ||
| Excluding: | ||||||||
| Interest expense | 1,856,979 | 1,136,300 | ||||||
| Income tax (benefit) expense | (400,000 | ) | 532,280 | |||||
| Equity compensation expense | 712,714 | 117,500 | ||||||
| Non-recurring professional fees* | 293,720 | 408,936 | ||||||
| Other (income) expense, net | 139,321 | (43,526 | ) | |||||
| Change in FV of warrant liabilities | (476,583 | ) | 165,361 | |||||
| Change in FV of conversion option liabilities | (272,479 | ) | 60,665 | |||||
| Foreign exchange loss | (6,509 | ) | 4,704 | |||||
| Depreciation | 25,364 | 42,752 | ||||||
| Adjusted EBITDA | $ | (877,790 | ) | $ | (434,890 | ) | ||
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