EzFill Holdings, Inc. (“EzFill” or the “Company”) (NASDAQ: EZFL), a
pioneer and emerging leader in the mobile fueling industry,
announced today its financial results for the three-month period
ended June 30, 2023 (“2Q23” or “second quarter 2023”).
Q2
23 Highlights (in
USD, except gallons
delivered)
|
Q2
2023 |
Q2
2022 |
Financial Highlights |
|
|
Revenue |
6,130,661 |
|
3,754,431 |
|
Net
loss |
(2,468,811 |
) |
(3,872,670 |
) |
Adjusted
EBITDA* |
(1,545,807 |
) |
(3,005,630 |
) |
Operating Highlights |
|
|
Total
Gallons Delivered |
1,583,320 |
|
782,0367 |
|
|
|
|
* See end of this press release for reconciliation to US GAAP |
Commenting on the second quarter results,
Interim CEO Yehuda Levy stated, “Our second quarter financial
results reflect improvement in both the comparison to the prior
year second quarter, and sequentially from the first quarter of
2023. Of particular note is that we increased our gallons delivered
to another record in the second quarter of 2023, which was 102%
higher year over year and we increased our margins by $0.13 per
gallon. We continue to grow our fleet business, adding 20 new fleet
customers in the second quarter of 2023, bringing our total to 54
new fleet customers for the year.
“We continue to work on reducing our overall
expenses and improving our operations. The team has helped achieve
another quarterly record for both gallons delivered and revenues.
We hope to continue our momentum in the coming months.”
Second Quarter
2023 Financial
Results
During the second quarter of 2023, the Company
reported revenue of $6.1million, up from $3.8 million in the prior
year period, a 63% increase, primarily due to a 102% increase in
gallons delivered. Total gallons delivered in the second quarter of
2023 were 1,583,320 compared to 782,037 in the prior year period,
reflecting new customers in existing and new markets, as well as
expansion of certain existing customers to new markets. Average
fuel margin per gallon was $0.60 for the quarter an increase of
$0.13 per gallon from the previous quarter.
Cost of sales was $5.6 million for the second
quarter of 2023 compared to $3.8 million for the prior year period.
The increase from the prior year reflects the increase in sales as
well as the hiring of additional drivers, primarily in new markets
and the cost of fuel.
Operating expenses, excluding depreciation and
amortization, were $2.4 million for the second quarter of 2023,
compared to $3.4 million in the prior year period. The decrease was
primarily due to decreases in payroll, technology expenses, stock
compensation and public company expenses as we continue to achieve
efficiencies in our operations.
Depreciation and amortization decreased to $0.28
million in the second quarter of 2023 from $0.46 million in the
prior year period due to the write-off of intangibles in 2022.
Interest expense increased in the current year
due to increased borrowing for truck purchases during 2022.
The net loss in the second quarter of 2023 was
$(2.5) million, compared to $(3.9) million in the prior year
period. Loss per share improved in the quarter to $(0.71) from
$(1.18) in the prior year period.
Adjusted EBITDA loss in the second quarter of
2023 was $(1.5) million as compared to Adjusted EBITDA loss of
$(3.0) million in the second quarter of 2022. The improvement in
adjusted EBITDA reflects both the improved margin and the operating
cost efficiencies.
As previously reported, on April 26, 2023, the
Company effected a 1:8 reverse stock split of its common stock. All
share related amounts have been adjusted to reflect the reverse
stock split.
Balance SheetAt June 30, 2023,
the Company had a cash position of $1.4 million, compared with $4.2
million at year end 2022. The Company had long-term debt of $1.1
million and had outstanding borrowings under its line of credit of
$1.0 million as of quarter end. Currently the Company has limited
cash and is relying on related party loans to fund its business
operations.
About EzFill
With the number of gas stations in the U.S.
continuing to decline, corporate giants such as Shell, Exxon, GM,
Bridgestone, Enterprise, and Mitsubishi have recognized the
increasing shift in consumer behavior and are investing in the fast
growing on-demand mobile fueling industry. As the only company to
provide fuel delivery in three vertical segments - consumer,
commercial, and specialty including marine, we believe EzFill is
well positioned to capitalize on the growing demand for convenient
and cost-efficient mobile fueling options.
EzFill is a leader in the fast-growing mobile
fuel industry, with the largest market share in its home state of
Florida. Its mission is to disrupt the gas station fueling model by
providing consumers and businesses with the convenience, safety,
and touch-free benefits of on-demand fueling services brought
directly to their locations. For commercial and specialty
customers, at-site delivery during downtimes enables operators to
begin their daily operations with fully fueled vehicles. For more
information, visit www.ezfl.com.
Forward Looking StatementsThis
press release contains “forward-looking statements” Forward-looking
statements reflect our current view about future events. When used
in this press release, the words “anticipate,” “believe,”
“estimate,” “expect,” “future,” “intend,” “plan,” or the negative
of these terms and similar expressions, as they relate to us or our
management, identify forward-looking statements. Such statements,
include, but are not limited to, statements contained in this press
release relating to our business strategy, our future operating
results and liquidity and capital resources outlook.
Forward-looking statements are based on our current expectations
and assumptions regarding our business, the economy and other
future conditions. Because forward–looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. Our actual
results may differ materially from those contemplated by the
forward-looking statements. They are neither statements of
historical fact nor guarantees of assurance of future performance.
We caution you therefore against relying on any of these
forward-looking statements. Important factors that could cause
actual results to differ materially from those in the
forward-looking statements include, without limitation, our ability
to raise capital to fund continuing operations; our ability to
protect our intellectual property rights; the impact of any
infringement actions or other litigation brought against us;
competition from other providers and products; our ability to
develop and commercialize products and services; changes in
government regulation; our ability to complete capital raising
transactions; and other factors relating to our industry, our
operations and results of operations. Actual results may differ
significantly from those anticipated, believed, estimated,
expected, intended or planned.
Factors or events that could cause our actual
results to differ may emerge from time to time, and it is not
possible for us to predict all of them. We cannot guarantee future
results, levels of activity, performance or achievements. The
Company assumes no obligation to update any forward-looking
statements in order to reflect any event or circumstance that may
arise after the date of this release.
For further information, please contact:
Investor and Media ContactTelx, Inc.Paula
LunaPaula@Telxcomputers.com
Note Regarding Use of Non-GAAP Financial
Measures
To supplement our condensed consolidated
financial statements, which are prepared in accordance with
generally accepted accounting principles in the United States
(GAAP), we use non-GAAP measures. Adjusted EBITDA is a non-GAAP
financial measure which we use in our financial performance
analyses. This measure should not be considered a substitute for
GAAP-basis measures, nor should it be viewed as a substitute for
operating results determined in accordance with GAAP. We believe
that the presentation of Adjusted EBITDA, a non-GAAP financial
measure that excludes the impact of net interest expense, taxes,
depreciation, amortization and stock compensation expense, provides
useful supplemental information that is essential to a proper
understanding of our financial results. Non-GAAP measures are not
formally defined by GAAP, and other entities may use calculation
methods that differ from ours for the purposes of calculating
Adjusted EBITDA. As a complement to GAAP financial measures, we
believe that Adjusted EBITDA assists investors who follow the
practice of some investment analysts who adjust GAAP financial
measures to exclude items that may obscure underlying performance
and distort comparability.
The following is a reconciliation of net loss to
the non-GAAP financial measure referred to as Adjusted EBITDA for
the three months ended June 30, 2023 and 2022
|
|
Three Months EndedJune 30, |
|
|
|
2023 |
|
|
2022 |
|
Net loss |
|
$ |
(2,468,811 |
) |
|
$ |
(3,872,670 |
) |
Interest expense |
|
|
306,547 |
|
|
|
6,167 |
|
Depreciation and
amortization |
|
|
277,608 |
|
|
|
458,811 |
|
Stock compensation |
|
|
338,849 |
|
|
|
402,061 |
|
Adjusted EBITDA |
|
$ |
(1,545,807 |
) |
|
$ |
(3,005,630 |
) |
|
|
For the Three Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Sales
– net |
|
$ |
6,130,661 |
|
|
$ |
3,754,431 |
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses |
|
|
|
|
|
|
|
|
Cost of sales |
|
|
5,646,291 |
|
|
|
3,755,861 |
|
General and administrative
expenses |
|
|
2,369,026 |
|
|
|
3,406,262 |
|
Depreciation and
amortization |
|
|
277,608 |
|
|
|
458,811 |
|
Total Costs and
Expenses |
|
|
8,292,925 |
|
|
|
7,620,934 |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(2,162,264 |
) |
|
|
(3,866,503 |
) |
|
|
|
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
|
|
|
Interest income |
|
|
14,461 |
|
|
|
19,754 |
|
Interest expense |
|
|
(308,189 |
) |
|
|
(25,921 |
) |
Loss on sale of marketable
debt securities |
|
|
(12,819 |
) |
|
|
- |
|
Total other income
(expense) – net |
|
|
(306,547 |
) |
|
|
(6,167 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,468,811 |
) |
|
$ |
(3,872,670 |
) |
|
|
|
|
|
|
|
|
|
Loss per share - basic
and diluted |
|
$ |
(0.71 |
) |
|
$ |
(1.18 |
) |
|
|
|
|
|
|
|
|
|
Weighted average
number of shares - basic and diluted |
|
|
3,469,490 |
|
|
|
3,294,252 |
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,468,811 |
) |
|
$ |
(3,872,670 |
) |
Change in fair value of debt
securities |
|
|
- |
|
|
|
(17,208 |
) |
Total comprehensive
loss: |
|
$ |
(2,468,811 |
) |
|
$ |
(3,889,878 |
) |
EzFill Holdings, Inc. and
SubsidiaryConsolidated Balance Sheets
|
|
June 30, 2023 |
|
|
December 31, 2022 |
|
|
|
(Unaudited) |
|
|
(Audited) |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
1,359,333 |
|
|
$ |
2,066,793 |
|
Investment in debt
securities |
|
|
- |
|
|
|
2,120,082 |
|
Accounts receivable – net |
|
|
1,004,114 |
|
|
|
766,692 |
|
Inventory |
|
|
130,341 |
|
|
|
151,248 |
|
Prepaids and other |
|
|
263,556 |
|
|
|
329,351 |
|
Total Current
Assets |
|
|
2,757,344 |
|
|
|
5,434,166 |
|
|
|
|
|
|
|
|
|
|
Property and
equipment – net |
|
|
3,994,302 |
|
|
|
4,589,159 |
|
|
|
|
|
|
|
|
|
|
Operating lease -
right-of-use asset |
|
|
411,025 |
|
|
|
521,782 |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
53,017 |
|
|
|
52,737 |
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
$ |
7,215,688 |
|
|
$ |
10,597,844 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses |
|
$ |
974,313 |
|
|
$ |
1,256,479 |
|
Line of credit |
|
|
1,000,000 |
|
|
|
1,000,000 |
|
Notes payable – net |
|
|
767,339 |
|
|
|
811,516 |
|
Notes payable – related
party |
|
|
1,171,800 |
|
|
|
- |
|
Operating lease liability |
|
|
238,042 |
|
|
|
230,014 |
|
Total Current
Liabilities |
|
|
4,151,494 |
|
|
|
3,298,009 |
|
|
|
|
|
|
|
|
|
|
Long Term
Liabilities |
|
|
|
|
|
|
|
|
Notes payable |
|
|
1,062,827 |
|
|
|
1,198,380 |
|
Operating lease liability |
|
|
202,002 |
|
|
|
316,008 |
|
Total
Long Term Liabilities |
|
|
1,264,829 |
|
|
|
1,514,388 |
|
|
|
|
|
|
|
|
|
|
Total
Liabilities |
|
|
5,416,323 |
|
|
|
4,812,397 |
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
Equity |
|
|
|
|
|
|
|
|
Preferred stock - $0.0001 par
value; 5,000,000 shares authorized none issued and outstanding,
respectively |
|
|
- |
|
|
|
- |
|
Common stock - $0.0001 par
value, 50,000,000 shares authorized 3,791,332 shares issued and
3,641,332 shares outstanding at June 30, 2023 and 3,335,674 shares
issued and outstanding at December 31, 2022 |
|
|
379 |
|
|
|
334 |
|
Additional paid-in
capital |
|
|
41,461,729 |
|
|
|
40,674,864 |
|
Accumulated deficit |
|
|
(39,662,743 |
) |
|
|
(34,845,161 |
) |
Accumulated other
comprehensive loss |
|
|
- |
|
|
|
(44,590 |
) |
Total Redeemable
Common Stock and Stockholders’ Equity |
|
|
1,799,365 |
|
|
|
5,785,447 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders’ Equity |
|
$ |
7,215,688 |
|
|
$ |
10,597,844 |
|
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