The following table presents certain information from our consolidated statements of operations by channel for the periods indicated: 2020 Versus 2019. Therefore, changes in F&I gross profit and the associated drivers are identical to changes in F&I revenue and the associated drivers. CarLotz estimates that if you go the usual route and sell to a dealer, you'll get 15 to 25 percent less than you would if you sold to a private-party buyer. Consigned vehicles represent on average approximately 75% of our vehicle inventory at our hubs after an initial ramp-up period following the opening of a new hub during which we usually have a higher portion of purchased vehicles to ensure a well-stocked inventory, with approximately 60% or more of our total vehicles sales originating from our growing relationships with corporate vehicle sourcing partners. Going forward, our strategy is to make capital investments in additional hubs with integrated processing centers by leveraging our data analytics and deep industry experience, and taking into account a combination of factors, including proximity to buyers and sellers, transportation costs, access to inbound inventory and sustainable low-cost labor. We are excited to have executed a merger with Acamar Partners Acquisition Corp. in January that resulted in our debut as a public company, and we have established the foundation required to continue to build and grow through 2021 and beyond., Highlights of Fiscal Year 2020 Financial Results. When expanded it provides a list of search options that will switch the search inputs to match the current selection. As of December31, 2020, our contractual obligations were as follows: On March27, 2020, the U.S. federal government enacted the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, which includes a provision for the Paycheck Protection Program, or PPP, loans administered by the U.S. Small Business Administration. In December 2019, we entered into a note purchase agreement with Automotive Finance Corporation (AFC) under which AFC agreed to purchase up to $5.0 million in notes, with the initial tranche equal to $3.0 million issued at closing and two additional tranches of at least $1.0 million on or prior to September 20, 2021, of which $0.5 million was issued prior to the completion of the Merger. The transaction price for used vehicles is a fixed amount as set forth in the customer contract. In addition, a return policy demonstrates that you care about your customers and their satisfaction with your goods and services. The closure of these dealership stores was set to begin Tuesday, with the aim of completing. We plan to expand our F&I product offering to drive additional gross profit. This improvement was primarily driven by a decrease in negative gross profit per unit and a decrease in wholesale vehicle unit sales. The Company specializes in the buying and selling of used cars, trucks, sedans, SUVs, vans, wagon . As an auto consignment store, we help sellers maximize the value for their car without the hassle of selling it themselves. The notes were converted into Former CarLotz common stock immediately prior to the consummation of the Merger and received the Merger Consideration. CarLotz also generates revenue from providing retail vehicle buyers with options for financing, insurance and extended warranties; these services are provided by third parties that pay CarLotz a commission based our customers purchases. Using this technology, we are able to lower the days-to-sale while assisting sellers to receive higher vehicle values and track every step of the sales process. The increase was primarily due to an increase in the number of retail vehicle unit sales as we sold 6,435 retail vehicles in 2019, compared to 4,077 retail vehicles in 2018 as well as an increase of the average sale price of $936. 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. The full amount of the PPP loan was repaid in connection with the closing of the Merger. Cost of sales increased by $13.6million, or 14.5%, to $107.4million during 2020, from $93.8million in 2019. Our current facilities are located in Midlothian, Richmond and Chesapeake, VA, Greensboro and Charlotte, NC, Tampa and Merritt Island, FL, Chicago, IL, San Antonio, TX and Seattle, WA. We offer our corporate vehicle sourcing partners a pioneering, Retail Remarketing service that fully integrates with their existing technology platforms. Although we can provide no assurance that we will not see further negative impacts of the pandemic and related economic recession, we believe that these changing preferences will result in positive long-term trends for our business. March 15, 2021 16:05 ET We have a full-spectrum of inventory, including high-value and commercial vehicles, available for delivery anywhere in the U.S., with sales completed in all 50 states. The increase was primarily due to an increase in average sale price of $2,625. 2019 Versus 2018. We regularly review a number of metrics, including the following key metrics, to evaluate our business, measure our progress and make strategic decisions. The Note was due and payable on the earlier of the closing of the Merger and December 2, 2022. That will be partially offset by a one-time severance cost of as much as. We have returned a number of vehicles from consignment during the first quarter of 2021 to date and expect to continue to return vehicles into the second quarter of 2021 as we work through the additional inventory that we sourced during the second half of 2020 to drive our growth. We're on a mission to create the world's greatest vehicle buying and selling experience so you get more car for your. 2019 Versus 2018. CarLotz is closing 11 of its hubs and three planned locations will not open, the company said Tuesday. Our retail vehicle unit sale growth was primarily driven by the maturation of existing hubs, full-year effect of those hubs opened during 2018, and an increase inpercentage of units sourced via consignment. We maintain stable long-term relationships with numerous key blue-chip national accounts with a robust sales pipeline of potential new accounts. When a customer requests a vehicle lease, we may enter into a lease with the customer for a vehicle owned by us. The company's tough time in the stock market has coincided with headwinds for its business. Customers frequently trade-in their existing vehicle to apply toward the transaction price of a used vehicle. Addition of New Corporate Vehicle Sourcing Accounts. The conference call webcast will be available at investors.carlotz.com. CarLotz is not your traditional dealership. Investments in Additional Processing Capacity. If the vehicle is returned, the sale and associated revenue recognition is reversed, and the vehicle is treated as a purchase of inventory. 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. As previously announced, the Company completed its merger transaction with Acamar Partners on January 21, 2021. Cost of sales increased by $41.1million, or 77.9%, to $93.8million during 2019, from $52.7million in 2018. Having a lot of fun with the best owner and store manager in the world at Swoop Inc. in Birmingham, Alabama. 2020 Versus 2019. Last month, CarLotz cut back its revenue outlook for the year along with vehicles sold and gross profit estimates due to a pause on consignments from its largest commercial vehicle sourcing partner. Utilizing a portion of the additional capital we raised in the Merger, we intend to ramp up our local advertising and begin to focus on a more national audience. Before shipping a return, photograph the item for your records. Carlotz - Baton Rouge, LA. Buyers can browse our extensive, and growing, inventory online through our website or at our locations as well as select from our fully integrated financing and insurance products with ease. As retail remarketing continues to develop as a more established alternative and as CarLotz expands to service buyers and sellers nationwide, we anticipate substantial growth with our existing commercial sellers. When expanded it provides a list of search options that will switch the search inputs to match the current selection. Our hubs with integrated vehicle processing centers allow us to add value by efficiently reconditioning vehicles and quickly move them to market. Deferred taxes are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. During this time, we maintained our aggressive cost cutting measures by limiting marketing expense and inventory purchases in an effort to preserve liquidity. On December 2, 2020, CarLotz issued a promissory note (the Note) to AFC. However, we cannot provide assurance of the ultimate significance and duration of COVID-19s disruption to our operations for several reasons, including, but not limited to, uncertainty regarding the duration of the pandemic and related disruptions, the impact of governmental orders and regulations that have been, and may in the future be, imposed, the impact of COVID-19 on our customers and corporate vehicle sourcing partners and the deterioration of economic conditions in the United States, as well as record high unemployment levels, which could have an adverse impact on discretionary consumer spending. This button displays the currently selected search type. When a customer selects a service from these third-party vendors, we earn a commission based on the actual price paid or financed. This growth was driven by double-digit growth in retail units, retail average selling price, and financing and product revenues, Retail unit sales exceeded expectations and were 1,815 compared to 1,614 in the prior year period, an increase of 12%, Financing and F&I Product Sales increased 49% year over year for the quarter, Gross profit increased 25% to $2.5 million from $2.0 million in the prior year period, Retail gross profit per unit (Retail GPU) increased 25% to $1,546 from $1,241 in the prior year period, SG&A expenses increased 36% to $6.4 million from $4.7 million in the same period in 2019. And, great representation from Executive Women During initial shelter in place orders and economic shutdowns, we saw a decrease in sales activity as consumers for the most part stayed home during the months of March through May of 2020. Our strategy is to generate significant growth going forward by expanding into new geographic markets, innovating and expanding our technological leadership, further penetrating existing accounts and key vehicle channels, adding new corporate vehicle sourcing accounts, investing in brand and tactical marketing and increasing our service offerings and further optimizing our pricing. As we do not have long-term contracts with our corporate vehicle sourcing partners and do not require them to make vehicles available to us, our mix of vehicles under alternative fee arrangements is likely to fluctuate over time. We sell vehicles through wholesalers, primarily at auction. The Richmond-based used car retailer, which went public through a so-called SPAC deal in January, has . We are not a party to any off-balance sheet arrangements, including guarantee contracts, retained or contingent interests, certain derivative instruments and variable interest entities that either have, or are reasonably likely to have, a current or future material effect on our consolidated financial statements. We define retail vehicles sold as the number of vehicles sold to customers in a given period, net of returns. Advertising costs are expensed as incurred. The increase was due to the increase in compensation and benefits costs of $2.6million, marketing expenses of $1.9million and other costs of $2.1million. The company was founded by Michael W. Bor in 2011 and is headquartered in Richmond, VA. At these hubs, our vehicles undergo an extensive 133-point inspection and reconditioning in preparation for resale. It's set to announce its first quarter earnings next month. The Note was repaid upon the consummation of the Merger. Our return policy allows customers to initiate a return during the first three days or 500 miles after delivery, whichever comes first. We have determined that we do not have any material unrecognized tax benefits or obligations as of December 31, 2020, December31, 2019 and December31, 2018. F&I revenue increased by $1.5million, or 93.8%, to $3.1million during 2019, from $1.6million in 2018. The market understands the importance of CarLotz's sourcing relationships, and back in May, when CarLotz announced that its largest sourcing partner would be temporarily suspending consignments. Trade-in vehicles represent noncash consideration which we measure at estimated fair value of the vehicle received on trade. Or, for additional information or to make an exchange, please contact us at 1.800.884.5815 or via email at onlineservice@cariloha.com. 2019 Versus 2018. 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 . The Ally Facility is secured by a grant of a security interest in certain vehicle inventory and other assets of the Company. In March2020, the World Health Organization declared the outbreak and spread of the COVID-19 virus a pandemic. All other such services are provided by third-party vendors with whom we have agreements giving us the right to offer such services directly. This improvement was primarily driven by a decrease in negative gross profit per unit, which was partially offset by increased wholesale vehicle unit sales. This button displays the currently selected search type. 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. We also have newly leased facilities in Nashville, TN and Charlottesville, VA. Our hubs act as both physical showrooms with predictable retail sales volumes and as consignment centers where we can source, process and recondition newly acquired inventory. To the fullest extent permitted by law, in no circumstances will CarLotz, Acamar Partners or any of their respective subsidiaries, stockholders, affiliates, representatives, partners, directors, officers, e mployees, advisers or agents be responsible or liable for any direct, indirect or consequential loss or loss of profit arising from the use To the extent the estimate of awards considered probable of being earned changes, the amount of equity-based compensation recognized will also change. 2020 Versus 2019. EBITDA and Adjusted EBITDA as presented herein are supplemental measures of our performance that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (GAAP). The following table summarizes our consolidated statements of cash flows for the periods indicated: For the year ended December 31, 2020, net cash used in operating activities was $4.6 million, primarily driven by a net loss of $6.6 million adjusted for non-cash charges of $0.5 million and net changes to our operating assets and liabilities of $2.5 million. 2019 Versus 2018. Highlights of Fourth Quarter 2020 Financial Results. Boxed items can be opened, but all packaging must be included. CarLotz generates a significant majority of its revenue from contracts with customers related to the sales of vehicles. Moreover, growth in inventoryunits available is an indicator of our ability to scale our vehicle sourcing, inspection and reconditioning operations. In addition to achieving cost savings and operational efficiencies, we aim to lower our days to sale. Such statements are based on managements current expectations and are not guarantees of future performance. As of December 31, 2020, we had total outstanding debt of $6.0 million under the AFC Facility. We operate a technology-enabled buying, sourcing and selling model that offers a seamless omni-channel experience and comprehensive selection of vehicles. Other costs include all other selling, general and administrative expenses such as facilities costs, technology expenses, logistics and other administrative expenses. We satisfy our performance obligation and recognize revenue for wholesale vehicle sales at a point in time when the vehicle is sold at auction or directly to a wholesaler. PROVIDED BY CARLOTZ Planet Fitness A Planet Fitness location is expected. We classify equity-based awards granted in exchange for services as either equity awards or liability awards. For equity and liability awards earned based on performance or upon occurrence of a contingent event, when and if the awards will be earned is estimated. Our technology offers a custom system for managing customer leads, scheduling appointments and test drives from our applications and websites as well as from third party providers. We offer 30 days, no-reason return policy. In connection with the entry into the Ally Facility, we repaid in full and terminated the AFC Facility. The merger requires the companies to have at least -$10.5m (for Shift) and $58m (for CarLotz) in net cash if the merger closes in 2022 (the condition does not deduct long-term debt). For the year ended December31, 2019, net cash used in investing activities was $0.5million, driven by $0.2million of purchases of property and equipment and $0.3million of purchases of leased vehicles. The following table reconciles EBITDA and Adjusted EBITDA to net loss attributable to common stockholders for the periods presented: MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Our revenue for theyears ended December31, 2020, 2019 and 2018 was $118.6million, $102.5million and $58.4million, respectively. 2019 Versus 2018. For the year ended December 31, 2020, the non-cash adjustments primarily related to a decrease in fair value of the preferred stock tranche obligation of $0.9 million, partially offset by an increase in depreciation and amortization of $0.3 million. Wholesale Vehicle Sales: Wholesale vehicle sales represent sales of vehicles through wholesale channels, primarily through wholesale auctions. As we scale our business, our plan is to invest in increased processing capacity. CarLotz buyers save money - typically paying 10-20% below traditional dealership prices - while shopping a wide selection of used cars in . The discussion should be read in conjunction with the consolidated financial statements and notes to be contained in our Annual Report on Form 10-K. CarLotz enables sellers to achieve greater vehicle values without the traditional hassles of the sale-by-owner market, such as meeting with strangers, arranging for financing and warranties, and handling burdensome DMV paperwork. In Denver, CarLotz is leasing an approximately 4.6-acre property, previously home to another used car seller that Denver-based Drake Real Estate Services purchased last month for $5.71 million,. We define vehicles available-for-sale as the number of vehicles listed for sale on our website on the last day of a given reporting period. As our sales began to return to pre-COVID-19 levels late in the second quarter of 2020, the ongoing OEM plant shut-downs and repossession moratoriums limited vehicle supply from our corporate vehicle sourcing partners through most of the third quarter. Critical Accounting Policies and Estimates. Increased Service Offerings and Price Optimization. For the year ended December31, 2018, net cash used in investing activities was $0.4million, primarily driven by $0.5million of purchases of property and equipment, partially offset by $0.1million in proceeds from the sale of leased vehicles. If you have questions, we are here for you! F&I revenue increased by $0.8million, or 25.1%, to $3.9million during 2020, from $3.1million in 2019. This increase was primarily driven by an increase in retail vehicle unit sales. Borrowings under the AFC Facility accrued interest at a variable interest rate based on the most recent prime rate published in The Wall Street Journal plus 2.00% per annum, which was 5.25% and 6.75% as of December 31, 2020 and December 31, 2019, respectively. However, Prestopino finds a lot to like about CarLotz. The classification of an award as either an equity award or a liability award is generally based upon cash settlement options. Management evaluates its accounting policies, estimates and judgments on an on-going basis. My favorite food We receive payment for used vehicle sales directly from the customer at the time of sale or from third-party financial institutions within a short period of time following the sale if the customer obtains financing. The AFC Facility was secured by all of our assets. However, pursuant to Section404 and the related rules adopted by the SEC, we, as a public company, will be required to maintain adequate internal control over financial reporting and include our managements assessment of the effectiveness of our companys internal control over financial reporting in our annual report. Cost of sales also includes any necessary adjustments to reflect vehicle inventory at the lower of cost or net realizable value. EBITDA and Adjusted EBITDA have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of the results as reported under GAAP. All of these initiatives are designed to lower reconditioning costs per unit and thereby improve per unit economics. CarLotz also said the reductions should free up roughly $10 million in working capital as inventory is liquidated. Vehicles held on consignment are not recorded in our inventory balance, as title on those vehicles, as well as the principal risks of ownership, remain with the consignors until a customer purchases the vehicle and the vehicle is delivered. Inside Carlotz, Inc.'s 10-K Annual Report: Revenue - Product Highlight. Once eligibility for return is confirmed, a specialist will help facilitate the process and pick up your Bed Frame. The following table includes aggregated information about contractual obligations that affect our liquidity and capital needs. Our hubs are more than just locations to buy, sell and repair vehicles and are crucial to the information and data-analytics that we make available to our corporate vehicle sourcing partners and retail customers. The increase was primarily due to an increase in unit sales as we sold 7,594 vehicles in 2019, compared to 4,687 vehicles in 2018. 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. Not a servant leader in sight. RICHMOND, Va., June 21, 2022 (GLOBE NEWSWIRE) -- CarLotz, Inc. (the "Company" or "CarLotz"; NASDAQ: LOTZ), a leading consignment-to-retail used vehicle marketplace, today announced the closure. Our hubs cover a geographic area of approximately 300 miles, while some of our commercial accounts expand our coverage up to 1,000 miles, based on available inventory type. A telephone replay will be available until 11:59 pm ET on March 22, 2021 and can be accessed by dialing 1-855-859-2056, or for international callers, 1-404-537-3406 and entering replay Pin number: 3417456. Lease income, net was $0.5million during 2019, as compared to $0.1million during 2018. Due to our rapid growth, our overall sales patterns to date have not reflected the general seasonality of the used vehicle industry, but we expect this to change once our business and markets mature. We are taking steps to match our intake of vehicles under this arrangement to our sales and reconditioning capacity and expect that we will begin to mitigate these expenses beginning in the second quarter and improving throughout 2021. The increase was primarily due to increased penetration of our F&I product offerings. Retail vehicle sales revenue increased by $37.0million, or 69.1%, to $90.4million during 2019, from $53.4million in 2018. We offer our products and services to (i)corporate vehicle sourcing partners, (ii)retail sellers of used vehicles and (iii)retail customers seeking to buy used vehicles. We receive a rate of interest higher from our customer than the rate we pay to the third party lessor. As we further develop the CarLotz brand, we believe our enhanced platform will support increased revenue from product sales and optimized vehicle pricing. Critical accounting policies are those policies that management believes are very important to the portrayal of our financial position and results of operations, and that require management to make estimates that are difficult, subjective or otherwise complex. We believe an expanded footprint will enable us to increase our vehicle sales and further penetrate our national vehicle sourcing partners while also attracting new corporate vehicle sourcing partners that were previously unavailable due to our geographic limitations. Additional vehicle volume from new accounts would allow us to improve our consigned vehicle market share at existing and new locations. All inventories, which are comprised of vehicles and parts held, for sale are reported at the lower of cost of net realizable value. We sell used vehicles to our retail customers from our hubs located throughout the US. CarLotz, Inc. and SubsidiariesReconciliation of Non-GAAP Financial Measures. We source vehicles from both corporate and consumer sellers. Our mission is to create the worlds greatest vehicle buying and selling experience. Our operating metrics (which may be changed or adjusted over time as our business scales up or industry dynamics change) measure the key drivers of our growth, including opening new hubs, increasing our brand awareness through unique site visitors and continuing to offer a full spectrum of used vehicles to service all types of customers. All returned items must be in new and unused condition with original tags and labels attached. Deferred income taxes are recorded using enacted tax rates based upon differences between financial statement and tax bases of assets and liabilities. Unless the context otherwise requires, references in this Managements Discussion and Analysis of Financial Condition and Results of Operations to we, us, our, and the Company refer to Former CarLotz and its consolidated subsidiaries prior to the consummation of the Merger. The remaining CarLotz locations will be rebranded as Shift. We provide retail vehicle buyers with options for financing, insurance and extended warranties. Under the Ally Facility, the Company is subject to financial covenants that require the Company to maintain at least 10% of the credit line in cash and cash equivalents, to maintain at least 10% of the credit line on deposit with Ally Bank and to maintain a minimum tangible net worth of $90 million calculated in accordance with GAAP. For the first quarter of 2021, the Company expects the following: For 2021, the Company expects the following: A conference call to discuss the fourth quarter and 2020 financial results is scheduled for today, March 15, 2021 at 4:30 pm ET. Here's why. Selling, general and administrative (SG&A) expenses primarily include compensation and benefits, advertising, facilities cost, technology expenses, logistics and other administrative expenses. We believe our available cash and liquidity available under the Ally Facility are sufficient to fund our operations and expansion plans for at least the next 12 months. We sell wholesale vehicles primarily through auction as wholesale vehicles acquired often do not meet our standards for retail vehicle sales. 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.
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