Consignment-to-retail used vehicle marketplace CarLotz, Inc. said on Wednesday (Dec. 16) that its total revenues rose 12 percent for Q3 2020 to $29.8 million, up from $26.5 million during the same time last year, according to an announcement.
The company’s gross profit rose $1.3 million, or more than 50 percent, from $2.3 million in the prior year timeframe to $3.6 million, while retail gross profit per unit spiked 71 percent from $1,276 in the prior year period to $2,181, according to the announcement.
Contribution margin per unit jumped 188 percent to $1,883 in Q3 2020 compared to $655 in Q3 of last year.
“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,” CarLotz, Inc. CEO and co-founder Michael Bor said in the announcement.
The firm is increasing its Q4 forecast for revenue, contribution margin and gross profit.
Contribution margin is forecasted to jump by about 97 percent, gross profit is forecasted to spike by about 77 percent, revenue is forecasted to rise by about 19 percent and retail units sold are forecasted to rise by about 10 percent.
Those forecasts are “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,” according to the announcement.
The news comes after CarLotz and special purpose acquisition company (or "SPAC") Acamar Partners Acquisition Corp. arrived at “a definitive business combination agreement” that would turn the used-car firm into a public company.
The newly combined firm will be named CarLotz, stay listed on Nasdaq and trade under the LOTZ ticker symbol.
Acamar’s website said that the blank-check company was “formed with the intent of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.”
The site added that the company aims “to make a $300 million to $1 billion equity investment in a company with a leading position in its segment of operations, and presence in North America or Western Europe.”
