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

ECDA@mzgroup.us

561 489 5315

 
 
                       ECD AUTOMOTIVE DESIGN, INC. 
 
                  CONSOLIDATED STATEMENTS OF OPERATIONS 
 
                     Three Months Ended           Nine Months Ended 
                        September 30,               September 30, 
                  -------------------------   ------------------------- 
                                  2023 As                     2023 As 
                     2024        Restated        2024        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 
                                     ---------------   ------------ 
                                                        (audited) 
                                       (unaudited)      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       For the nine months 
                          ended                     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) 
                  ----------    --------    ---------- 

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