RICHMOND, Va., May 26, 2021 (GLOBE NEWSWIRE) – CarLotz, Inc. (âCarLotzâ or the âCompanyâ), a leading used vehicle retail market, today filed a Form 8- K to the Securities and Exchange Commission, stating that the company’s profit-sharing corporate vehicle supply partner has informed the company that, in light of current wholesale market conditions, it has suspended shipments at the society. In the three months ended March 31, 2021, this supply partner has accounted for over 60% of cars sold and purchased and, for the second quarter to date, has accounted for less than 50% of cars sold and around 25% cars. source.
Michael Bor, President and CEO of CarLotz, said: âSoaring wholesale vehicle prices and the continuing shortage of new automotive chips continue to restrict inventory supply throughout the industry. This fact, combined with the hiatus in our incentive account, created challenges in getting our expected inventory levels. Over the past several months, we have taken steps to increase our sourcing from other channels to meet market challenges, and we expect them to increase our access to vehicles from shipments, trades and purchases. consumers and improve our capacity. to buy vehicles profitably through auctions. Additionally, we remain focused on our goal of increasing our non-competitive sourcing through consignment and bulk purchases by adding new corporate vehicle sourcing accounts and increasing our penetration with our partners. supply of existing company vehicles. “
Bor further stated, âOur new hubs have performed well, our new hub pipeline remains strong and we continue to expect 14 to 16 hub openings this year. However, since our last release of results, the composition and timing of pipeline deployment has changed due to a variety of factors including negotiations, licensing and zoning. As a result, the large openings of a few new hubs will occur later in the year than initially planned, and the 2021 contribution of these hubs will be lower than what had been anticipated due to the timing. “
2021 outlook update
The Company updates its 2021 outlook as well as its financial guidance and comments regarding its expected performance in the second quarter of 2021 previously communicated on May 10, 2021 due to:
- the current business climate, impacted by the lack of vehicles in this incentive account, coupled with the unpredictable timing of the shortage of chips for new cars and its impact on the automotive wholesale and retail markets; and
- slipping of some hub openings later than expected.
For the full year 2021, the company expects the following results. This outlook for 2021 assumes that in the second quarter of 2021, the Company will sell more than 2,000 retail units and achieve gross profit per unit of at least $ 1,800.
|New hub openings||14 to 16 hub openings, most of which should open in the second half of the year|
|Retail units sold||13,000 to 15,000, which is an increase of over 100% from 2,020 retail units sold|
|Net revenue||From $ 272 to $ 317 million, which is an increase of over 125% over 2020 net income|
|Gross profit||$ 20-26 million, which is an increase of over 75% over 2020 gross margin|
|Retail GPU||$ 1,650 to $ 1,850|
|General and administrative expenses||$ 98 to $ 102 million, excluding non-cash stock compensation expense which is expected to be approximately $ 52 million|
|Adjusted EBITDA *||(82) to (72) million dollars|
|Weighted average common shares outstanding||111 million shares|
|Capital expenditure||$ 45-50 million|
* A reconciliation of the indicative non-GAAP measures to the corresponding GAAP measures for our forecast for the full year 2021 is not available on a forward-looking basis without unreasonable effort due to the uncertainty and potential variability of those costs and expenses that may be incurred in the future.
About CarLotz, Inc.
CarLotz is a used vehicle consignment and Retail Remarketing â¢ business that provides our corporate vehicle supply partners and used vehicle retailers the ability to access the retail channel. previously unavailable, while offering buyers on average lower prices than traditional dealers. Our mission is to create the best vehicle buying and selling experience in the world. We operate a technology-driven buying, sourcing and selling model that delivers a seamless omnichannel experience and a comprehensive vehicle selection, while enabling a fully contactless end-to-end e-commerce interface that allows for hassle-free buying and selling. Our proprietary Retail Remarketing â¢ technology provides our business vehicle research partners with real-time performance metrics and data analytics, as well as customized business intelligence reports that enable price and vehicle sorting optimization between. the wholesale and retail channel. Through our market model, we generate significant value for sellers and buyers through price, selection and experience.
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 regarding possible or suspected future actions, business strategies, events or results of operations, including statements regarding CarLotz’s expectations or forecasts about future financial or business performance or conditions. Forward-looking statements may be preceded, followed by or include the words “believes”, “believes”, “expects”, “plans”, “plans”, “may”, “will”, “should”, “seeks,” “Plan”, “planned”, “anticipate” or “consider” or similar expressions. These statements are based on management’s current expectations and are not guarantees of future performance. Forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from the results projected, expressed or implied by such forward-looking statements. Factors that could cause such differences include those disclosed in documents filed by CarLotz with the SEC, including those resulting from the impact of the current 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 on which they are made, and CarLotz has no obligation, and expressly disclaims any obligation, to update, modify or revise any forward-looking statement, whether at the new information, future events. or otherwise, except as required by law.