CarLotz Announces Record Revenue and Retail Unit Sales in First Quarter 2021

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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:

 GuidanceResults 
New Hub OpeningsThreeThreeMet Expectations
Retail Units Sold1,900 to 2,100 2,554Exceeded Expectations
Net Revenue$42 to $46 million$56.6 millionExceeded Expectations
Gross Profit$1.6 to $2.0 million$2.0 millionMet Expectations
Retail Gross Profit per Unit (“Retail GPU”)$1,300 to $1,500$1,182Below Expectations

 
SG&A Expenses$17 to $19 million$18.9 million, excluding non-cash stock compensation expense of $42 millionMet Expectations
Net Loss$(16) to $(15) million$(15) millionMet Expectations

For 2021, the Company confirms its previous guidance, with certain changes noted below, and expects the following:

2021 Guidance
New Hub Openings14 to 16 hub openings, most of which are expected to open in the back half of the yearNo change
Retail Units Sold18,000 to 20,000 with 13,000 to 15,000 in the second half of yearNo change
Net Revenue$335 to $375 millionNo change
Gross Profit$30 to $37 millionNo change
Retail GPU$1,800 to $2,000No change
SG&A Expenses$103 to $108 million, excluding non-cash stock compensation expense expected to be approximately $52 millionProviding separate guidance for SG&A and non-cash stock compensation expense
Adjusted EBITDA*$(79) to $(67) millionProviding 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 Outstanding111 millionUpdated from 113.6 million to 111 million
Capital Expenditures$45 to $50 millionNo 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)

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