Third Quarter Record Revenue of $29.8
million along with
Record Gross Profit, GPU,
Contribution Margin and CMU
Raising Fourth Quarter Revenue and Gross
Profit Guidance
Reiterate 2021 – 2023 Projections
CarLotz, Inc., (“CarLotz” or the “Company”), a leading
consignment-to-retail used vehicle marketplace, which recently
announced it would become a public company via a merger with
special purpose acquisition company Acamar Partners Acquisition
Corp. (“Acamar”) (Nasdaq: ACAM), today announced financial results
for the third quarter and nine month period ended September 30,
2020.
Michael Bor, Chief Executive Officer and Co-Founder of CarLotz,
Inc, commented, “I am thrilled with our third quarter financial
performance highlighted by our 12% increase in total revenue, 56%
increase in gross profit, and 188% growth in contribution margin
per unit, despite a COVID impacted backdrop. Our strong third
quarter results are a testament to the team’s continued execution
of our growth strategies combined with CarLotz’ differentiated
positioning as the only consignment-to-retail sales operator in the
used vehicle industry.”
Third Quarter Financial Results
The Company’s third quarter 2020 net revenues increased 12% to
$29.8 million from $26.5 million in the same period in 2019. This
growth was driven by double-digit growth in retail and financing
revenues. Gross profit increased $1.3 million, or 56%, to $3.6
million from $2.3 million in the prior year period. Retail gross
profit per unit (“GPU”) increased 71% to $2,181 from $1,276 in the
prior year period. Contribution margin per unit increased 188% to
$1,883 in the third quarter 2020 versus $655 in the third quarter
of 2019 primarily attributed to maintaining industry leading CAC
efficiency while increasing sales and gross profits.
“As we look to the fourth quarter and to 2021, we’ve never been
more confident in our ability to drive to our stated goals,”
commented Mr. Bor. We are raising our outlook for the fourth
quarter, and reiterating our financial projections for 2021 and out
to 2023. Our inventory sourcing relationships are stronger than
ever and our recent surge in inventory is driving sales and
profits, providing proof of our ability to support our future
growth. We have made significant strides operationally increasing
our confidence in our plans to roll out our national hub-based
growth strategy and execute on our ambitious long-term plans. We’ve
also recently added key leadership roles to our team, including a
CMO, GC and CCO, and CFO with decades of experience in retail and
in our industry. Along with other key hires, we have a growing team
that is ready to execute on our plan. We couldn’t be more excited
to embark on our national expansion. With a mixture of new leases
and LOI’s signed on a number of new locations already, we are
gearing up for a lot of activity in the first half of next
year.”
Luis Solorzano, Chief Executive Officer of Acamar Partners,
commented: “CarLotz’ impressive third quarter results underscore
our conviction in the business and further supports our investment
philosophy of growth and value creation. CarLotz’ inventory
sourcing relationships are stronger than ever, and we have
increased confidence in its national hub-based growth strategy and
long term plans. Our team at Acamar Partners continues to work
closely with the CarLotz team and expects to close the transaction
in early first quarter 2021.”
Fourth Quarter Outlook
The Company is raising its fourth quarter outlook for revenue,
gross profit and contribution margin. Based on the mid-point of
year-over-year growth ranges for the fourth quarter that can be
found in the Company’s supplemental presentation filed today,
retail units sold are expected to increase by ~10%; revenue is
expected to increase by ~19%; gross profit is expected to increase
by ~77%; and contribution margin is expected to increase by
~97%.
In connection with the pending business combination, Acamar
Partners has filed with the U.S. Securities and Exchange Commission
(“SEC”) an amended registration statement on Form S-4/A, which can
be found at www.sec.gov. The business combination is expected to
close in early first quarter 2021.
Investor Conference Call Information
A conference call to discuss the third quarter 2020 financial
results is scheduled for today, December 16, 2020 at 8:30 am ET.
Interested parties may listen to the conference call via telephone
by dialing 1-877-451-6152, or for international callers,
1-201-389-0879. A telephone replay will be available until 11:59 pm
ET on December 23, 2020 and can be accessed by dialing
1-844-512-2921, or for international callers, 1-412-317-6671 and
entering replay Pin number: 13714338.
The conference call webcast, together with certain supplemental
presentation materials, will be available at www.acamarpartners.com
and www.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.
About Acamar Partners Acquisition Corp.
Acamar Partners Acquisition Corp. is a blank check company
formed for the purpose of effecting a merger, capital stock
exchange, asset acquisition, stock purchase, reorganization or
similar business combination with one or more businesses. Acamar
Partners Acquisition Corp. raised $305.6 million in its initial
public offering in February 2019 (and subsequent exercise of the
underwriters’ over-allotment option). The company’s securities are
quoted on Nasdaq under the ticker symbols ACAM, ACAMW and
ACAMU.
Important Additional Information and Where to Find It
This communication is being made in respect of the proposed
merger transaction involving Acamar Partners and CarLotz. Acamar
Partners has filed a registration statement on Form S-4 with the
Securities and Exchange Commission (the “SEC”), which includes a
preliminary proxy statement of Acamar Partners, a preliminary
prospectus of Acamar Partners and a preliminary consent
solicitation statement of CarLotz, and will file other documents
with the SEC regarding the proposed transaction. A definitive proxy
statement/prospectus/consent solicitation statement will also be
sent to the stockholders of Acamar Partners and CarLotz, seeking
any required stockholder approval. Before making any voting or
investment decision, investors and security holders of Acamar
Partners and CarLotz are urged to carefully read the entire
registration statement and proxy statement/prospectus/consent
solicitation statement, when they become available, and any other
relevant documents filed with the SEC, as well as any amendments or
supplements to these documents, because they will contain important
information about the proposed transaction. The documents filed by
Acamar Partners with the SEC may be obtained free of charge at the
SEC’s website at www.sec.gov. In addition, the documents filed by
Acamar Partners may be obtained free of charge from Acamar Partners
at www.acamarpartners.com. Alternatively, these documents, when
available, can be obtained free of charge from Acamar Partners upon
written request to Acamar Partners Acquisition Corp., 1450 Brickell
Avenue, Suite 2130, Miami, Florida 33131, or by calling
786-264-6680.
Participants in the Solicitation
Acamar Partners, CarLotz and certain of their respective
directors and executive officers may be deemed to be participants
in the solicitation of proxies from the stockholders of Acamar
Partner in connection with the proposed merger. Information
regarding Acamar Partners’ directors and executive officers is
contained in Acamar Partners’ Annual Report on Form 10-K for the
year ended December 31, 2019, which has been filed with the SEC and
is available at the SEC website at www.sec.gov.
Additional information regarding the interests of these
participants and other persons who may be deemed to be participants
in the solicitation may be obtained by reading the registration
statement and the proxy statement/prospectus/consent solicitation
statement and other relevant documents filed with the SEC when they
become available. Free copies of these documents may be obtained as
described in the preceding paragraph.
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval, nor shall there be any sale of any securities
in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of such other jurisdiction.
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 Acamar Partners’ and
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.
Forward-looking statements involve risks and uncertainties that
may cause actual events, results or performance to differ
materially from those indicated by such statements. Certain of
these risks are identified and discussed in Acamar Partners’ Form
10-K for the year ended December 31, 2019 under “Risk Factors” in
Part I, Item 1A and in Acamar Partners’ Form 10-Q for the quarterly
period ended March 31, 2020, Form 10-Q for the quarterly period
ended June 30, 2020 and Form 10-Q for the quarterly period ended
September 30, 2020 under “Risk Factors” in Part II, Item 1A. These
risk factors will be important to consider in determining future
results and should be reviewed in their entirety.
In addition to risks previously disclosed in Acamar Partners’
reports filed with the SEC and those identified elsewhere in this
communication, the following factors, among others, could cause
actual results to differ materially from forward-looking statements
or historical performance: ability to meet the closing conditions
to the merger, including approval by stockholders of Acamar
Partners and CarLotz on the expected terms and schedule; delay in
closing the merger; failure to realize the benefits expected from
the proposed transaction; the effects of pending and future
legislation; risks related to management’s focus on the proposed
transaction rather than on the ongoing business operations of
CarLotz; business disruption following the transaction; risks
related to Acamar Partners’ or CarLotz’ indebtedness; other
consequences associated with mergers, acquisitions and legislative
and regulatory actions and reforms; risks of the automotive and
used vehicle industries; the potential impact of COVID-19 on the
used vehicle industry and on the CarLotz business; litigation,
complaints, product liability claims or adverse publicity; the
impact of changes in consumer spending patterns, consumer
preferences, local, regional and national economic conditions,
crime, weather, demographic trends and employee availability; new
entrants in the consignment-to-retail used vehicle business;
technological disruptions, privacy or data breaches, the loss of
data or cyberattacks; and the ability to compete successfully with
new and existing market participants.
Any financial projections in this communication are
forward-looking statements that are based on assumptions that are
inherently subject to significant uncertainties and contingencies,
many of which are beyond Acamar Partners’ and CarLotz’ control.
While all projections are necessarily speculative, Acamar Partners
and CarLotz believe that the preparation of prospective financial
information involves increasingly higher levels of uncertainty the
further out the projection extends from the date of preparation.
The assumptions and estimates underlying the projected results are
inherently uncertain and are subject to a wide variety of
significant business, economic and competitive risks and
uncertainties that could cause actual results to differ materially
from those contained in the projections. The inclusion of
projections in this communication should not be regarded as an
indication that Acamar Partners and CarLotz, or their
representatives, considered or consider the projections to be a
reliable prediction of future events.
Forward-looking statements speak only as of the date they are
made, and Acamar Partners and CarLotz are under no obligation, and
expressly disclaim 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.
Readers should carefully review the statements set forth in the
reports that Acamar Partners has filed or will file from time to
time with the SEC. Forward-looking statements are expressed in good
faith, and Acamar Partners and CarLotz believe there is a
reasonable basis for them. However, there can be no assurance that
the events, results or trends identified in these forward-looking
statements will occur or be achieved.
Annualized, pro forma, projected and estimated numbers are used
for illustrative purpose only, are not forecasts and may not
reflect actual results.
This communication is not intended to be all-inclusive or to
contain all the information that a person may desire in considering
an investment in Acamar Partners and is not intended to form the
basis of an investment decision in Acamar Partners. All subsequent
written and oral forward-looking statements concerning Acamar
Partners and CarLotz, the proposed transaction or other matters and
attributable to Acamar Partners and CarLotz or any person acting on
their behalf are expressly qualified in their entirety by the
cautionary statements above.
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version on businesswire.com: https://www.businesswire.com/news/home/20201216005330/en/
Investors: CarLotzIR@icrinc.com
Media: CarLotzPR@icrinc.com
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