LOTZ - CarLotz Announces Record Revenue and Retail Unit Sales in First Quarter 2021
First Quarter Revenue Growth of 123% to $56.6 million, Ahead of Expectations
First Quarter Unit Sales Grew 76% to 2,554, Ahead of Expectations
RICHMOND, Va., May 10, 2021 (GLOBE NEWSWIRE) -- CarLotz, Inc. (“CarLotz” or the “Company”), a leading consignment-to-retail used vehicle marketplace, today announced financial results for the first quarter ended March 31, 2021.
Highlights of First Quarter 2021 Financial Results
- Net revenues increased 123% to $56.6 million from $25.4 million in the same period in 2020
- Retail unit sales were 2,554 compared to 1,453 in the prior year period, an increase of 76%
- Net Loss attributable to common shareholders was $(15.0) million, or $(0.15) per diluted share, for the first quarter 2021 versus $(1.5) million, or $(0.03) per diluted share in the prior year period
- Adjusted EBITDA was $(16.9) million compared to $(1.4) million in the first quarter of 2020
Michael Bor, Chief Executive Officer and co-founder of CarLotz commented: “We are excited to announce that, in advance of much of the growth we are driving this year through new hub development and nationwide expansion, we already are posting a 123% growth in revenue. We sold a record 2,554 retail units during the first quarter, opened three new hubs in Seattle, WA, Merritt Island, FL and Nashville, TN. And, we have announced planned new hub openings in Charlottesville, VA, Bakersfield, CA, Highland Park, IL, and Clearwater, FL in the coming months. We have been very pleased with our new hub performance to date and have signed close to a dozen leases and have several more leases under negotiation for 2021 and 2022 sites.”
The following compares our first quarter results to our previously provided first quarter guidance:
| Guidance |
| Results |
| New Hub Openings |
| Three |
| Three |
| Met Expectations |
| Retail Units Sold |
| 1,900 to 2,100 |
| 2,554 |
| Exceeded Expectations |
| Net Revenue |
| $42 to $46 million |
| $56.6 million |
| Exceeded Expectations |
| Gross Profit |
| $1.6 to $2.0 million |
| $2.0 million |
| Met Expectations |
| Retail Gross Profit per Unit (“Retail GPU”) |
| $1,300 to $1,500 |
| $1,182 |
| Below Expectations |
| SG&A Expenses |
| $17 to $19 million |
| $18.9 million, excluding non-cash stock compensation expense of $42 million |
| Met Expectations |
| Net Loss |
| $(16) to $(15) million |
| $(15) million |
| Met Expectations |
For 2021, the Company confirms its previous guidance, with certain changes noted below, and expects the following:
| 2021 Guidance |
| New Hub Openings |
| 14 to 16 hub openings, most of which are expected to open in the back half of the year |
| No change |
| Retail Units Sold |
| 18,000 to 20,000 with 13,000 to 15,000 in the second half of year |
| No change |
| Net Revenue |
| $335 to $375 million |
| No change |
| Gross Profit |
| $30 to $37 million |
| No change |
| Retail GPU |
| $1,800 to $2,000 |
| No change |
| SG&A Expenses |
| $103 to $108 million, excluding non-cash stock compensation expense expected to be approximately $52 million |
| Providing separate guidance for SG&A and non-cash stock compensation expense |
| Adjusted EBITDA* |
| $(79) to $(67) million |
| Providing Adjusted EBITDA guidance instead of Net Loss guidance as a result of the change in the accounting treatment of the Company’s warrants |
| Weighted Average Common Stock Shares Outstanding |
| 111 million |
| Updated from 113.6 million to 111 million |
| Capital Expenditures |
| $45 to $50 million |
| No change |
*A reconciliation of non-GAAP guidance measures to corresponding GAAP measures for our full year 2021 guidance is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, these costs and expenses that may be incurred in the future. We have provided a reconciliation of GAAP to non-GAAP financial measures for our first quarter 2021 in the Reconciliation of Non-GAAP Financial Measures section that follows.
Webcast and Conference Call Information
A conference call to discuss the first quarter 2021 financial results is scheduled for today, May 10, 2021 at 5:30 pm ET. Interested parties may listen to the conference call via telephone by dialing 1-833-962-1461, or for international callers, 1-929-517-0392. A telephone replay will be available until 11:59 pm ET on May 17, 2021 and can be accessed by dialing 1-855-859-2056, or for international callers, 1-404-537-3406 and entering replay Pin number: 8006869.
The conference call webcast will be available at www.investors.carlotz.com .
About CarLotz, Inc.
CarLotz is a used vehicle consignment and Retail Remarketing™ business that provides our corporate vehicle sourcing partners and retail sellers of used vehicles with the ability to access the previously unavailable retail sales channel while simultaneously providing buyers with prices that are, on average, below those of traditional dealerships. Our mission is to create the world’s greatest vehicle buying and selling experience. We operate a technology-enabled buying, sourcing and selling model that offers a seamless omni-channel experience and comprehensive selection of vehicles while allowing for a fully contactless end-to-end e-commerce interface that enables no hassle buying and selling. Our proprietary Retail Remarketing™ technology provides our corporate vehicle sourcing partners with real-time performance metrics and data analytics along with custom business intelligence reporting that enables price and vehicle triage optimization between the wholesale and retail channel. Through our marketplace model, we generate significant value for both sellers and buyers through price, selection and experience.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, forward-looking statements include statements that are not historical facts, such as statements concerning possible or assumed future actions, business strategies, events or results of operations, including statements regarding CarLotz’ expectations or predictions of future financial or business performance or conditions. Forward-looking statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” or “intends” or similar expressions. Such statements are based on management’s current expectations and are not guarantees of future performance. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected, expressed or implied by these forward-looking statements. Factors that could cause such differences include those disclosed in CarLotz’ filings with the SEC, including those resulting from the impact of the ongoing Covid-19 pandemic on our business and general business and economic conditions and our ability to successfully execute our geographic expansion plans. Forward-looking statements speak only as of the date they are made, and CarLotz is under no obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Investors:
CarLotzIR@icrinc.com
Media:
CarLotzPR@icrinc.com
CarLotz, Inc. and Subsidiaries?—?Condensed Consolidated Balance Sheets
(unaudited)
(In thousands, except share data)
| March 31, 2021 |
| December 31, 2020 |
| Assets |
| Current Assets: |
| Cash and cash equivalents |
| $ |
| 74,362 |
| $ |
| 2,208 |
| Restricted cash |
| 227 |
| 605 |
| Marketable securities?–?at fair value |
| 173,644 |
| 1,032 |
| Accounts receivable, net |
| 9,324 |
| 4,132 |
| Inventories |
| 9,311 |
| 11,202 |
| Other current assets |
| 6,655 |
| 6,679 |
| Total Current Assets |
| 273,523 |
| 25,858 |
| Marketable securities?–?at fair value |
| 44,780 |
| — |
| Property and equipment, net |
| 2,349 |
| 1,868 |
| Capitalized software |
| 2,554 |
| — |
| Lease vehicles, net |
| 58 |
| 173 |
| Other assets |
| 3,337 |
| 299 |
| Total Assets |
| $ |
| 326,601 |
| $ |
| 28,198 |
| Liabilities, Redeemable Convertible Preferred Stock, Stockholders’ Equity (Deficit) |
| ? |
| Current Liabilities: |
| ? |
| Long-term debt, current |
| $ |
| 55 |
| $ |
| 6,370 |
| Floor plan notes payable |
| 4,125 |
| 6,039 |
| Accounts payable |
| 9,423 |
| 6,283 |
| Accrued transaction expenses |
| — |
| 6,052 |
| Accrued expenses |
| 11,150 |
| 3,563 |
| Accrued expenses?–?related party |
| — |
| 5,082 |
| Other current liabilities |
| 815 |
| 256 |
| Total Current Liabilities |
| 25,568 |
| 33,645 |
| Long-term debt, less current portion |
| 1,250 |
| 2,999 |
| Redeemable convertible preferred stock tranche obligation |
| — |
| 2,832 |
| Earnout shares liability |
| 42,438 |
| — |
| Merger warrant liability |
| 26,667 |
| — |
| Other liabilities |
| 1,570 |
| 1,959 |
| Total Liabilities |
| 97,493 |
| 41,435 |
| Commitments and Contingencies (Note 15) |
| — |
| — |
| Redeemable Convertible Preferred Stock: |
| ? |
| ? |
| Series A Preferred Stock $0.001 stated value; authorized 3,052,127 shares; after recapitalization there are no preferred shares issued or outstanding at March 31,2021 and December 31, 2020 |
| — |
| — |
| Stockholders’ Equity (Deficit): |
| ? |
| Common stock, $0.0001 par value; 500,000,000 authorized shares, 113,670,060 and 58,621,042 shares issued and outstanding at March 31, 2021 and December 31, 2020 |
| 11 |
| 6 |
| Additional paid-in capital |
| 278,272 |
| 20,779 |
| Accumulated deficit |
| (49,059 |
| ) |
| (34,037 |
| ) |
| Accumulated other comprehensive income (loss) |
| (116 |
| ) |
| 15 |
| Treasury stock, $0.001 par value; after recapitalization there are no treasury shares issued or outstanding at March 31, 2021 and December 31, 2020 |
| — |
| — |
| Total Stockholders’ Equity (Deficit) |
| 229,108 |
| (13,237 |
| ) |
| Total Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) |
| $ |
| 326,601 |
| $ |
| 28,198 |
CarLotz, Inc. and Subsidiaries?—?Condensed Consolidated Statements of Operations
(unaudited)
(In thousands, except per share and share data)
| Three Months Ended March 31, |
| 2021 |
| 2020 |
| Revenues: |
| ? |
| ? |
| Retail vehicle sales |
| $ |
| 50,383 |
| $ |
| 21,042 |
| Wholesale vehicle sales |
| 4,568 |
| 3,311 |
| Finance and insurance, net |
| 1,554 |
| 892 |
| Lease income, net |
| 107 |
| 145 |
| Total Revenues |
| 56,612 |
| 25,390 |
| Cost of sales (exclusive of depreciation) |
| 54,604 |
| 22,918 |
| Gross Profit |
| 2,008 |
| 2,472 |
| Operating Expenses: |
| ? |
| ? |
| Selling, general and administrative |
| 18,873 |
| 3,916 |
| Stock-based compensation expense |
| 41,963 |
| 34 |
| Depreciation and amortization expense |
| 383 |
| 100 |
| Management fee expense?–?related party |
| 2 |
| 62 |
| Total Operating Expenses |
| 61,221 |
| 4,112 |
| Loss from Operations |
| (59,213 |
| ) |
| (1,640 |
| ) |
| Interest Expense |
| 175 |
| 149 |
| Other Income (Expense), net |
| ? |
| Change in fair value of merger warrants liability |
| 12,358 |
| — |
| Change in fair value of redeemable convertible preferred stock tranche obligation |
| — |
| 284 |
| Change in fair value of earnout provision |
| 31,846 |
| — |
| Other income |
| 162 |
| 3 |
| Total Other Income (Expense), net |
| 44,366 |
| 287 |
| Loss Before Income Tax Expense |
| (15,022 |
| ) |
| (1,502 |
| ) |
| Income Tax Expense |
| — |
| 5 |
| Net Loss |
| $ |
| (15,022 |
| ) |
| $ |
| (1,507 |
| ) |
| Net loss per share, basic and diluted |
| $ |
| (0.15 |
| ) |
| $ |
| (0.03 |
| ) |
| Weighted-average shares used in computing net loss per share, basic and diluted |
| 100,817,385 |
| 58,621,041 |
CarLotz, Inc. and Subsidiaries?—?Condensed Consolidated Statements of Cash Flows
(unaudited)
(In thousands, except per share and share data)
| Three Months Ended March 31, |
| 2021 |
| 2020 |
| Cash Flow from Operating Activities |
| Net loss |
| $ |
| (15,022 |
| ) |
| (1,507 |
| ) |
| Adjustments to reconcile net loss to net cash used in operating activities |
| Depreciation?–?property and equipment |
| 105 |
| 51 |
| Amortization and accretion - marketable securities |
| 238 |
| — |
| Depreciation?–?lease vehicles |
| 15 |
| 49 |
| Loss on marketable securities |
| — |
| 13 |
| Provision for doubtful accounts |
| — |
| 6 |
| Stock-based compensation expense |
| 41,963 |
| 34 |
| Change in fair value of Merger warrants liability |
| (12,358 |
| ) |
| (13 |
| ) |
| Change in fair value of earnout shares |
| (31,846 |
| ) |
| — |
| Change in fair value of debt issuance costs and stock warrant |
| — |
| 5 |
| Change in fair value of redeemable convertible preferred stock tranche obligation |
| — |
| (284 |
| ) |
| Change in Operating Assets and Liabilities: |
| Accounts receivable |
| (5,192 |
| ) |
| 1,177 |
| Inventories |
| 1,991 |
| 1,790 |
| Other current assets |
| (5,868 |
| ) |
| 8 |
| Other assets |
| (3,038 |
| ) |
| 9 |
| Accounts payable |
| 3,140 |
| (325 |
| ) |
| Accrued expenses |
| 6,187 |
| (54 |
| ) |
| Accrued expenses?–?related party |
| (229 |
| ) |
| (50 |
| ) |
| Other current liabilities |
| 559 |
| 67 |
| Other liabilities |
| (245 |
| ) |
| 150 |
| Net Cash (Used in)/Provided by Operating Activities |
| (19,600 |
| ) |
| 1,126 |
| Cash Flows from Investing Activities |
| Purchase of property and equipment |
| (586 |
| ) |
| (10 |
| ) |
| Capitalized website and internal-use software costs |
| (1,154 |
| ) |
| — |
| Purchase of marketable securities |
| (217,689 |
| ) |
| (421 |
| ) |
| Proceeds from sales of marketable securities |
| 59 |
| 18 |
| Purchase of lease vehicles |
| — |
| (246 |
| ) |
| Net Cash Used in Investing Activities |
| (219,486 |
| ) |
| (659 |
| ) |
| Cash Flows from Financing Activities |
| Payments made on long-term debt |
| — |
| (2 |
| ) |
| PIPE Issuance |
| 125,000 |
| — |
| Merger financing |
| 309,999 |
| — |
| Payment made on accrued dividends |
| (4,853 |
| ) |
| — |
| Payments to existing shareholders of Former CarLotz |
| (62,693 |
| ) |
| — |
| Transaction costs and advisory fees |
| (47,579 |
| ) |
| — |
| Payments made on cash considerations associated with stock options |
| (2,465 |
| ) |
| — |
| Repayment of Paycheck Protection Program loan |
| (1,749 |
| ) |
| — |
| Payments made on note payable |
| (3,000 |
| ) |
| — |
| Payments on floor plan notes payable |
| (11,150 |
| ) |
| (8,847 |
| ) |
| Borrowings on floor plan notes payable |
| 9,236 |
| 7,139 |
| Net Cash Provided by/(Used in) Financing Activities |
| 310,746 |
| (1,710 |
| ) |
| Net Change in Cash and Cash Equivalents Including Restricted Cash |
| 71,776 |
| (1,243 |
| ) |
| Cash and cash equivalents and restricted cash, beginning |
| 2,813 |
| 4,102 |
| Cash and cash equivalents and restricted cash, ending |
| $ |
| 74,589 |
| $ |
| 2,859 |
| Supplemental Disclosure of Cash Flow Information |
| Cash paid for interest |
| $ |
| 402 |
| $ |
| 165 |
| Supplementary Schedule of Non-cash Investing and Financing Activities: |
| Transfer from lease vehicles to inventory |
| $ |
| 100 |
| $ |
| 199 |
| Redeemable convertible preferred stock distributions accrued |
| — |
| 457 |
| KAR/AFC exercise of stock warrants |
| (144 |
| ) |
| — |
| KAR/AFC conversion of notes payable |
| (3,625 |
| ) |
| — |
| Convertible redeemable preferred stock tranche obligation expiration |
| (2,832 |
| ) |
| — |
| Capitalized website and internal use software costs accrues |
| (1,400 |
| ) |
| — |
CarLotz, Inc. and Subsidiaries?—?Results of Operations, Retail Gross Profit per Unit
(unaudited)
(In thousands, except per unit metrics)
| ? |
| Three Months Ended March 31, |
| ? |
| 2021 |
| 2020 |
| Change |
| Change |
| Revenue: |
| Retail vehicle sales |
| $ |
| 50,383 |
| $ |
| 21,042 |
| $ |
| 29,341 |
| 139 |
| % |
| Wholesale vehicle sales |
| 4,568 |
| 3,311 |
| 1,257 |
| 38 |
| % |
| Finance and insurance, net |
| 1,554 |
| 892 |
| 662 |
| 74 |
| % |
| Lease income, net |
| 107 |
| 145 |
| (38 |
| ) |
| (26 |
| )% |
| Total revenues |
| 56,612 |
| 25,390 |
| 31,222 |
| 123 |
| % |
| Cost of sales: |
| ? |
| ? |
| Retail vehicle cost of sales |
| $ |
| 48,917 |
| $ |
| 19,555 |
| $ |
| 29,362 |
| 150 |
| % |
| Wholesale vehicle cost of sales |
| 5,687 |
| 3,363 |
| 2,324 |
| 69 |
| % |
| Total cost of sales |
| $ |
| 54,604 |
| $ |
| 22,918 |
| $ |
| 31,686 |
| 138 |
| % |
| Gross profit: |
| ? |
| ? |
| Retail vehicle gross profit |
| $ |
| 1,466 |
| $ |
| 1,487 |
| $ |
| (21 |
| ) |
| (1 |
| )% |
| Wholesale vehicle gross profit |
| (1,119 |
| ) |
| (52 |
| ) |
| (1,067 |
| ) |
| (2052 |
| )% |
| Finance and insurance gross profit |
| 1,554 |
| 892 |
| 662 |
| 74 |
| % |
| Lease income, net |
| 107 |
| 145 |
| (38 |
| ) |
| (26 |
| )% |
| Total gross profit |
| $ |
| 2,008 |
| $ |
| 2,472 |
| $ |
| (464 |
| ) |
| (19 |
| )% |
| Retail gross profit per unit(1): |
| ? |
| ? |
| ? |
| Retail vehicles gross profit |
| $ |
| 1,466 |
| $ |
| 1,487 |
| (21 |
| ) |
| (1 |
| )% |
| Finance and insurance gross profit |
| 1,554 |
| 892 |
| 662 |
| 74 |
| % |
| Total retail vehicles and finance and insurance gross profit |
| 3,020 |
| 2,379 |
| 641 |
| 27 |
| % |
| Retail vehicles unit sales |
| 2,554 |
| 1,453 |
| (1,101 |
| ) |
| (76 |
| )% |
| Retail vehicles gross profit per unit |
| $ |
| 1,182 |
| $ |
| 1,637 |
| $ |
| (455 |
| ) |
| (28 |
| )% |
(1) Gross profit per unit is calculated as gross profit for retail vehicles and finance and insurance, each of which is divided by the total number of retail vehicles sold in the period.
CarLotz, Inc. and Subsidiaries?—?EBITDA and Adjusted EBITDA
(unaudited)
(In thousands, except share data)
| Three Months Ended |
| 2021 |
| 2020 |
| Change |
| Net Loss Attributable to Common Stockholders |
| $ |
| (15,022 |
| ) |
| $ |
| (1,507 |
| ) |
| $ |
| (13,515 |
| ) |
| Adjusted to exclude the following: |
| Interest expense |
| 175 |
| 149 |
| 26 |
| Income tax expense |
| — |
| 5 |
| (5 |
| ) |
| Depreciation and amortization expense |
| 383 |
| 100 |
| 283 |
| EBITDA |
| $ |
| (14,464 |
| ) |
| $ |
| (1,253 |
| ) |
| $ |
| (13,211 |
| ) |
| Other expense |
| (162 |
| ) |
| (3 |
| ) |
| (159 |
| ) |
| Stock compensation expense |
| 41,963 |
| 34 |
| 41,929 |
| Management fee expense - related party |
| 2 |
| 62 |
| (60 |
| ) |
| Change in fair value of warrants liability |
| (12,358 |
| ) |
| — |
| (12,358 |
| ) |
| Change in fair value of redeemable convertible preferred stock tranche obligation |
| — |
| (284 |
| ) |
| 284 |
| Change in fair value of earnout provision |
| (31,846 |
| ) |
| — |
| (31,846 |
| ) |
| Adjusted EBITDA |
| $ |
| (16,865 |
| ) |
| $ |
| (1,444 |
| ) |
| $ |
| (15,421 |
| ) |