EINC E Automotive Inc

TORONTO, May 10, 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 ended March 31, 2022 ("Q1 2022"). Financial references herein are in U.S. dollars unless otherwise indicated.

"We continued to attract new marketplace participants and drive higher transaction volumes on our digital wholesale marketplace, EBlock, during the quarter which led to revenue growth of 51%," said Jason McClenahan, President & CEO, E INC. "We have been able to execute on our strategy and grow despite challenging macro-economic conditions. Inventory levels within the North American vehicle market remain tight which impacts transaction volumes. This dynamic amplifies the need for auto dealers to seek an easy-to-use digital platform that enables them to profitably and effectively manage that inventory. As the market normalizes, we believe we will be well positioned to earn more units per customer as we continue to invest for growth in the U.S. market. Our digital-platform meets physical-location strategy puts us in a strong position to capitalize on the changes underway in the market as dealers search for ways to improve efficiency, transact more frequently and compete with direct to consumer models." 

2022 Q1 Highlights
(Comparison periods in each case are the three months ended March 31, 2021)

• Revenue was up 51% to $24.8 million from $16.4 million in the prior period, primarily driven by growth in Vehicles Transacted across its EBlock digital marketplace in Canada and its expansion of EBlock in the U.S., which resulted in increased auction fee and ancillary service revenue, as well as, the growth in its EDealer subscriber base
• Gross transaction value was up 101% to $784.5 million in Q1 2022, driven by the volume and dollar value of vehicles transacted
• Vehicles transacted were up 37% to 47,400 in Q1 2022
• Marketplace participants grew to 11,100, up 40%, as of March 31, 2022 compared to the same point in 2021
• Net loss was $14.9 million compared to a loss of $3.0 million in the corresponding period in 2021
• Adjusted EBITDA¹ loss was $8.9 million in Q1 2022 compared to a loss of $0.6 million in Q1 2021
• 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 comprehensive 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 months ended March 31, 2022 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, May 10, 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) 224-1121 with the conference identification of 8994174. 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. Or https://produceredition.webcasts.com/starthere.jsp?ei=1545982&tp_key=504251a9fc. 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, acquisition-related expenses, and other expense (income), net.

The following table reconciles net loss to Adjusted EBITDA loss for the three months ended March 31, 2022 and March 31, 2021:

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

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

Unaudited Interim Condensed Consolidated Statements of Financial Position
[Expressed in US dollars]

Unaudited Interim Condensed Consolidated Statements of Cash Flows
[Expressed in US dollars]

SOURCE E Automotive Inc.