EINC E Automotive Inc

TORONTO, March 22, 2022 /CNW/ - E Automotive Inc. d/b/a E Inc. (TSX: EINC) (the "Company" or "E INC") a company that connects the automotive wholesale and retail experiences with a proprietary technology platform operating under the brands EBlock and EDealer, today announced its financial and operational results for the three months ("Q4 2021") and twelve months ended ("FY 2021") ended December 31, 2021. Financial references herein are in US dollars unless otherwise indicated.

"The strong performance in the fourth quarter was primarily a result of an increase in vehicles transacted as well as higher values for vehicles transacted. In the current macro environment, where inventory conditions within the auto marketplace remain extremely tight, effective inventory management is critical to auto dealers. This is exactly what we solve for with EBlock, our digital wholesale marketplace, and EDealer, our digital retail, offerings," said Jason McClenahan, President & CEO, E INC. "Our results to date are primarily driven by our leading position in the Canadian market and our competitive position in the western U.S. wholesale markets. Since the third quarter of 2021, we made significant progress on our growth strategies to expand across the U.S. including the launch of EBlock in the southeast U.S. and the acquisition of FastLane Auto Exchange in Michigan. These initiatives expand our footprint in the U.S. and in due time will begin to make a meaningful contribution. We have the technology, the team and the strategy to replicate our success in Canada in the U.S. market as auto dealers search for intuitive, easy to use platforms that support their profitability through innovative inventory management." 

2021 Q4 and Year End Highlights
(Comparison periods in each case are the three and twelve months ended December 31, 2020)

• Revenue was up 149% to $23.1 million and up 164% to $80.0 million in Q4 and FY 2021, respectively, compared to $9.3 million and $30.3 million in the corresponding periods in 2020, the annual period increase is primarily a result of more than 93% organic growth from an increase in vehicles transacted and subscriber adoption with the remainder a result of the three acquisitions completed in 2021
• Gross transaction value was up 265% to $704.6 million in Q4 2021, and up 225% to $2,192.4 million in FY 2021, which is a function of the volume and dollar value of vehicles transacted
• Vehicles transacted were up 149% to 45,542 in Q4 2021, and up 143% to 163,523 in FY 2021
• Marketplace participants grew to 10,007, up 70%, as of December 31, 2021 compared to the same point in 2020
• Net loss was $10.9 million and $24.0 million in Q4 2021 and FY 2021, respectively, compared to $3.2 million and $6.7 million in the corresponding periods in 2020
• Adjusted EBITDA¹ loss was $5.5 million and $7.9 million in Q4 2021 and FY 2021, respectively compared to $2.0 and $4.1 million in the corresponding periods in 2020
• Subsequent to the end of the period, the Company acquired FastLane Auto Exchange, a midwest-focused, full service auction marketplace located in Mount Morris, Michigan, which strengthens the Company's wholesale marketplace by enabling it to offer the only cross-border dealer to dealer auction platform with an end-to-end solution for cross-border buyers

E INC's unaudited financial statements for the three and twelve months ended December 31, 2021 and Management's Discussion & Analysis for the same period have been filed on SEDAR at www.sedar.com.

Notice of Conference Call
E INC will host a conference call Tuesday, March 22, 2022 at 5:00 PM ET to discuss its financial results. Jason McClenahan, President & CEO, and Andy Bohlin, CFO, will co-chair the call. All interested parties can join the call by dialing (647) 484-0478 or (888) 256-1007 with the conference identification of 4704521. Please dial in 15 minutes prior to the call to secure a line. A live audio webcast of the conference call will also be available at e.inc/investors. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast.

About E INC
E INC's mission is to optimize the online vehicle buying, selling, and management experience for automotive dealers and consumers. E INC has a digital platform (the "Platform") that provides automotive dealerships with access to an online wholesale auction marketplace where they can purchase or sell vehicles to other dealers, as well as access innovative software solutions to support dealers' digital retailing and inventory management. Access to E INC's Platform is complemented by ancillary service offerings to assist dealers with supplementary auction-related needs, along with driving consumer traffic to their digital properties and optimizing other business processes. E INC's digital wholesale marketplace goes to market under the brand EBlock, and E INC's digital suite of retail products goes to market under the brand EDealer.

Non-IFRS Financial Measures
This press release makes reference to certain non-IFRS financial measures and industry metrics. These measures are not recognized measures under International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS financial measures, including "Adjusted EBITDA". This press release also makes reference to "vehicles transacted", "marketplace participants", "subscribers", "gross transaction value", each of which are operating metrics used in our industry. Non-IFRS financial measures and industry metrics are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS financial measures and industry metrics in the evaluation of issuers. Management also uses non-IFRS financial measures and industry metrics in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and forecasts and determine components of management compensation.

Non-IFRS Measures
"Adjusted EBITDA" means net loss for the period, adjusted to exclude: finance expense, net, income tax expense, depreciation and amortization, share-based compensation expense, transaction costs, which are costs associated with the Company's Initial Public Offering that are not directly attributable to the issuance of new shares, acquisition-related expenses, expenses related to non-routine legal matters, and other expense (income), net.

The following table reconciles net loss to Adjusted EBITDA loss for the three and twelve months ended December 31, 2021 and December 31, 2020:

Forward Looking Statements

This press release may contain forward-looking information and statements within the meaning of applicable securities legislation, which reflect management's current expectations regarding future events. These statements are based on the Company's expectations, estimates, forecasts, and projections and include, without limitation, statements regarding the future success of the Company's business growth and replicating success in the U.S. market.

The forward-looking statements in this press release are based on certain assumptions, including that the Company's business will continue to perform in accordance with recent history and that industry fundamentals remain strong. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including the risks discussed under the heading "Risk Factors" in the Company's Annual Information Form dated March 22, 2022.  Actual results could differ materially from those projected herein. Readers, therefore, should not place undue reliance on any such forward-looking statements. The forward-looking statements included herein are made as of the date of this press release and the Company does not undertake any obligation to update such forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws. All of the forward-looking information in this press release is expressly qualified by the foregoing cautionary statements. Additional information relating to E INC, including our Annual Information Form, can be found on SEDAR at www.sedar.com

Consolidated Statements of Loss and Other Comprehensive Loss
[Expressed in US dollars, except number of shares]

Consolidated Statements of Financial Position
[Expressed in US dollars]

Consolidated Statements of Cash Flows
[Expressed in US dollars]

SOURCE E Automotive Inc.