Q2 2024 ECD Auto Design Inc Earnings Call

August 19, 2024

Speaker Change: [music].

Operator: Good day and welcome to the ECD AutoDesign 2nd quarter 2024 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Operator: Good day and welcome to the ECD Auto Design second quarter 2024 earnings conference call. All participants will be in listen-only mode.

Good day and welcome to the E. C. D audio design second quarter 'twenty 'twenty four earnings conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by Seattle.

Operator: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad.

Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded.

After todays presentation, there will be an opportunity to ask question to ask a question you May Press Star then one on your telephone keypad withdraw your question. Please press Star then two.

Speaker Change: Please note this event is being recorded.

Operator: To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Brian Prennivou, Investor Relations, please go ahead. Thank you, Operator, and good afternoon, everyone. Welcome to the ECD Autodesign second quarter 2024 earnings webcast and conference call. Today's date is August 19th, 2024.

Brian Prinibu: I would now like to turn the conference over to Brian Prinibu, Investor Relations.

Brian kind: I would now like to turn the conference over to Brian kind of Investor Relations. Please.

Brian Prinibu: Please go ahead. Thank you, operator, and good afternoon, everyone. Welcome to the ECD AutoDesign 2nd quarter 2024 earnings webcast and conference call.

Please go ahead.

Speaker Change: You operator, and good afternoon, everyone welcome to the E. C. D audio design the second quarter of 'twenty 'twenty four earnings webcast and conference call. Today's date is August 19th 'twenty 'twenty four and on the call today from E. C. D. Audio design are Scott Wallace, founder and Chief Executive Officer, and Raymond Cole Chief Financial Officer before.

Brian Prinibu: Today's date is August 19th, 2024. Now on the call today from ECD AutoDesign are Scott Wallace, founder and chief executive officer, and Raymond Cole, chief financial officer.

Brian Prennivou: Now on the call today from ECD Autodesign are Scott Wallace, founder and chief executive officer, and Raymond Cole, chief financial officer. Before we begin, I'd like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statement. For a discussion of such risks and uncertainties, please see ECD Autodesign's most recent filings with the SEC. All four of the statements made today reflect our current expectations only and we undertake no obligation to update any statement to reflect the events that occur after this call.

Brian Prinibu: Before we begin, I'd like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. For a discussion of such risks and uncertainties, please see ECD AutoDesign's most recent filings with the SEC. All for the statement may today reflect our current expectations only, and we undertake no obligation to update any statement to reflect the events that occur after this call.

Speaker Change: We begin I'd like to remind everyone that this call may contain forward looking statements as they are defined under the private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward looking statements for a discussion of.

Speaker Change: Such risks and uncertainties. Please see E C D auto designs, most recent filings with the SEC.

All forward looking statements made today reflect our current expectations only and we undertake no obligation to update any statement to reflect the events that occur after this call.

Brian Prinibu: Also, during the course of today's call, the company will be discussing one or more non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures is included in the press release we issued this afternoon. Copies of today's press release are accessible on ECDA's investor website. ECD AutoDesign.com. In addition, ECDA's Form 10-K and 10-Qs are also available on ECDA's investor relations website.

Speaker Change: So during the course of today's call the company will be discussing one or more non-GAAP financial measures reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in the press release, we issued this afternoon.

Speaker Change: Copies of today's press release are accessible on E C D as investor website.

Speaker Change: E C D auto design Dot com.

Scott Wallace: E C D. A's Form 10-K, and 10-Qs are also available on <unk> Investor Relations website, now I'd like to turn the call over to founder and Chief Executive Officer, Scott Wallace Scott.

Scott Wallace: Now I'd like to turn the call over to Founder and Chief Executive Officer Scott Wallace.

Brian Prennivou: Also, during the course of today's call, the company will be discussing one or more non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in the press release we issued this afternoon. Copies of today's press release are accessible on ECDA's investor website, ecdautodesign.com. In addition, ECDA's Form 10-K and 10-Qs are also available on ECDA's Investor Relations website. Now, I'd like to turn the call over to Founder and Chief Executive Officer, Scott Wallace. Scott. Thanks, Brian.

Scott Wallace: Scott. Thanks, Brian.

Scott Wallace: Thanks, Brian.

Scott Wallace: First, I'd like to thank our shareholders and those interested in EC Auto Design for joining the call. This is our first go-around reporting earnings and holding a conference call as a public company, so we've learned a lot and appreciate everyone's patience. For those that are new to ECD automotive design story, we are the world leader in classic British car restoration. We have two facilities in operation, a manufacturing plant in Kissimmee, Florida, which we call the Rover Dome, and logistics and fulfillment center in the UK.

Speaker Change: First I'd like to thank our shareholders and those interested me you also have designed for joining the call. This is al.

Speaker Change: First go around reporting earnings and holding a conference call as a public company. So we've learned a lot and appreciate everyone's patience.

Scott Wallace: For those that are new to ECD automotive design story, we are the world leader in classic British car restoration. We have two facilities in operation and manufacturing planting Kazemi Florida, which we call the Rover Dome and logistics and fulfillment center in the UK. We manufacture custom classic Land Rover Defenders, rain grovers and Jaguar E Types as restamots. Our one-of-one builds carry a selling price of between $300,000 and $400,000. Early this year, we announced the addition of American muscle cars, which provides us a great opportunity to begin building classic Mustangs and other classic American cars. We also announced the addition of black dot trading in June, which provides us the opportunity to look for models of the iconic Toyota FJ.

Speaker Change: Although it's not a new T V C. D. Automotive design story, we are the world leader in classic, but she's called registration we have two facilities in operation a matter of fact, you're punting because they'd be Florida, which we called the rope a dope on logistics and fulfillment center in the U K, we manufacture custom classic land Rover defenders range Rover and Jaguar F type.

Scott Wallace: We manufacture custom classic Land Rover Defenders, Range Rovers, and Jaguar E-Types as restomods. Our one-of-one builds carry a selling price of between $300,000 and $400,000. Earlier this year, we announced the addition of American muscle cars, which provides us a great opportunity to begin building classic Mustangs and other classic American cars.

Speaker Change: The malls I wonder one builds carrier selling prices between 3000 and $400000.

Speaker Change: Early this year, we announced the addition of American muscle calls, which provides us a great opportunity to begin building plastic Mustangs Oh, the classic American Pos.

Scott Wallace: We also announced the addition of Black Dog Trading in June, which provides us the opportunity to build luxury models of the iconic Toyota FJ. ECD is not the usual SPAC company and we've been delivering custom automobiles for over 10 years. The company started with $150,000 investment without outside capital or vendor credit terms. We have now built over 550 custom cars to date and the company has generated over $100 million in lifetime revenues with gross margins approximate to those of Ferrari.

Speaker Change: We also named the addition of Black book trading in June which provides us the opportunity to luxury models.

Tony: Tony Okay S J E.

Scott Wallace: ECD is not the usual SPAC company, and we have been delivering custom automobiles for over 10 years. The company started with a $150,000 investment with our outside capital of vendor credit terms. We have now built over 550 custom cars to date, and the company has generated over 100 million in lifetime revenues, with gross margins approximate to those of Ferrari. Up until we took the company public via these SPACs late last year, the business was self-funded to internally generated cash flow for over a decade. Being a public company was never really our intention, but the demand for our product and the fact for opportunity have led us to where we are today.

Speaker Change: He said he's not the usual stock company and we've been delivering close to most of the bills for the 10 years, the company's donkey, but the 150 times those investments without capital.

Speaker Change: Capital or vendor credit tenants, we have neighbor of the 550 customer calls to date and the company has generated over 100 million in lifetime revenues with gross margins approaching those of Ferrari.

Scott Wallace: Up until we took the company public, via DSPAC late last year, the business was self-funded through internally generated cash flow for over a decade. Being a public company was never really our intention, but the demand for our product and the sector opportunity have led us to where we are today.

Speaker Change: Up until we took the company public by these back late last year, the patients with self funded through internally generated cash flow for over a decade.

Speaker Change: Being a public company was never really a retention, but the demand for our products and the opportunity have led us to where we are today. When we formed the business. We aim to disrupt the automotive sector and industry. The auto sector has been relatively stagnant for years and we feel we found a new operating model.

Scott Wallace: When we formed the business, we had to disrupt the automotive sector and industry. The automotive sector has been relatively stagnant for years and we feel we found a new operating model. Our plan places the customer at the center of our process and provides an experience not typically affiliated with auto sales. We're looking to let mechanics be creative and build a product rather than maintain a product. Keeping our team excited and engaged, we follow a retention model instead of a recruitment model for our team.

Scott Wallace: When we formed the business, we had to disrupt the automotive sector and industry. The automotive sector has been relatively stagnant for years, and we feel we found a new operating model. I have planulated the customer at the centre of our process and provides an experience not typically affiliated with auto sales. We are looking to let mechanics be created and build a product rather than maintain a product. Keeping our team excited and engaged, we follow a retention model instead of a recruitment model for our team. We build one of one vehicles with the intellectual property earned by the client.

Speaker Change: Planned place the customer at the center of our process and provides and it's being it's not typically affiliated with auto sales were looking like mechanic be crazy to build the project rather maintain the products keeping us unique sites are engaged we call retention model instead of a recruiting on multiple fronts.

Scott Wallace: We build one-of-one vehicles with the intellectual property owned by the client. We do everything in-house, ensuring quality across all phases is to the highest standard. Lastly, we only take projects that excite us and our team. Today, we have over 550 of our vehicles being driven around the world. Our success to this date primarily lies in our strict capital allocation approach. We deploy capital to the right areas without any excess. We invest in mechanics and parts to ensure we can always build cars and drive working capital velocity. The opportunity to scale a city follows three, organic, inorganic by roll-up of subscale operators, and classic car ecosystem. I will discuss each path in detail.

Speaker Change: We build 101 vehicles with the intellectual property owned by declines we do everything hangs ensuring quality across all phases is the highest standard lastly, real estate project site those and that's a.

Scott Wallace: We do everything in house, ensuring quality across all phases is the highest standard. Lastly, we only take projects that excite us and our team. Today, we have over 550 of our vehicles being driven around the world. Our success to the state primarily lies in our strict capital allocation approach. We deploy capital to the right areas without any excess. We invest in mechanics and parts for ensure we could always build cars and drive working capital velocity.

Speaker Change: Today, we have over 550 of our vehicles around the world.

Speaker Change: Our success to the state primarily lies in a strict capital allocation approach, we deploy capital to the right areas without any excess we vastly mechanic and Pops, we ensure we could always put calls and drive working capital velocity.

Scott Wallace: The opportunity to scale is to de-follow three paths. Organic, inorganic, viral up of sub-skill operators and classic curry consistent. I will discuss each path in detail.

Speaker Change: The opportunity to scale. It follows three paths organic inorganic viral uplifts subscale operators.

Speaker Change: I see car ecosystem I will discuss each path in detail.

Scott Wallace: Now Kissimmee, Florida factory is 100,000 square foot facility with capacity for three production lines. As mentioned, the building allows three lines to produce roughly 60 cars annually per line on an eight-hour shift. With the addition of American muscle cars and black dog trading, we can begin taking orders for the third line. The capability deliver of 180 cars per year, with average selling prices of roughly $350,000, would put ECD's revenue near $65 million annually, double what we anticipate doing in 2024. This model features minimal acquisition costs and a low entry point of capital expenditures.

Scott Wallace: Our consumer Florida factory is a 100,000 square facility with capacity for three production lines. As mentioned, the building allows three lines to produce roughly 60 cars annually per line on an 8-air ship pattern. With the addition of American muscle cars and black belt trading, we can begin taking orders for the third line. The capability delivery of 180 cars per year, with every selling price of roughly $350,000, will put into the revenue near $65 million annually, double what we anticipate during 2024. This model features minimal acquisition costs and a low entry point of capital expenditures. Adding a new model in the future would only cost approximately $150,000, which is the bill of materials.

Speaker Change: Okay semi Florida factories, 100000 square foot facility with capacity for three production lines.

Speaker Change: I've mentioned the building along three lines to produce 60 calls annually.

Speaker Change: On a tax shield.

Speaker Change: We need to tune of American most of the calls and Black book trading we can bring begin taking orders for the third line.

Speaker Change: The capability to deliver of 100, Nike cost per year, that'd be selling prices of roughly $50000 with <unk> revenue need 65 million annually double what we anticipate doing in 2024.

Speaker Change: This model features minimal acquisition cost and a low entry point of capital expenditures, adding a new model in the future would only cost approximately $150, which is the bill of materials. They slow integration called speaks to our ability to grow the subscale ultra manufacturers, who developed identifiable nishi, but whose all.

Scott Wallace: Adding a new model in the future would only cost approximately $150,000, which is the bill of materials. This low integration cost speaks to our ability to roll up sub-skill ultra-manufacturers who have developed identifiable niches but whose operation needs to allow for meaningful growth. By folding these manufacturers in ECD, we can add them to our product line in incremental steps with minimal investment required. For the second quarter, ECD reported revenue of $8.9 million, up 129% year-over-year, with gross margins of 31.8%.

Scott Wallace: This low integration costs speed to our ability to roll up sub-skill ultra manufacturers who have developed a densifiable niche that whose operation needs to allow for meaningful growth. By folding these manufacturers with an ECD, we can add them to our target line in incremental steps with minimal investment required.

Speaker Change: Operational needs to align with a meaningful growth.

Speaker Change: Folding these manufacturer with an E. C D. We can ebb and flow of product line and incremental steps with minimal investment required.

Scott Wallace: For the second quarter, ECD reported revenue of $8.9 of 129 per year over year, with gross margins of 31.8 per cent. As ECD is a new company in the public market, I'd like to take some time to go over its past before discussing its future. As we drive towards our 2024 revenue expectations, ECD will have delivered revenue continental growth rates of 30 percent in 2018. As our revenues grow, so does our profitability. The secret here has to do with increased customization. Our clients are not cash-starved. They are time and creativity-starved. We've resolved these limiting factors by patenting the client in an immersive design experience.

Speaker Change: For the second quarter, HDD reported revenue of $8 $9 million up 129% year over year with gross margins of 31, 8% S. E. T D. As a new company in the public markets I'd like to take some time to build rates passed before discussing its future.

Scott Wallace: As ECD is a new company in the public market, I'd like to take some time to go over its past before discussing its future. As we drive towards our 2024 revenue expectations, EC will have delivered revenue componental growth rates of 30% to 2018. As our revenues grow, so does our profitability. The secret here has to do with increased customization. Our clients are not cash-starved, they are time and creatively starved.

Speaker Change: As we drive towards the 'twenty 'twenty four revenue expectations, you see will have delivered revenue compound annual growth rates of 30% for 2018.

Speaker Change: As our revenues grow so does that profitability.

Speaker Change: The secret here has to do with increased customization.

Speaker Change: Clients are not cashed out their time and creatively stopped we resolve these limiting factors I've tightened decline.

Scott Wallace: We've resolved these limiting factors by placing the client in an immersive design experience. We hold their hand through several choices beyond the base model, and this is where our margin economics come from. A base model ECD vehicle is $250,000, the average upgrade is roughly $80,000, with an average margin of 65% on those upgrades. The only other scale public automotive manufacturer that can offer comparable customization is Ferrari. While Ferrari will produce fibrillate custom cars and refer to them as one-of-one, customization is relatively limited. There are 500 other versions of that custom and their production line doesn't allow for the fluidity necessary to produce a one-of-one bit.

Speaker Change: An immersive experience, we hold their hand through several choices beyond.

Scott Wallace: We hold our hand through several choices beyond the base model, and this is where our margin economics come from. The base model ECD vehicle is $250,000. The average upgrade is roughly $80,000, with an average margin of 65% on those upgrades. The only other scale public automotive manufacturer that can offer comparable customization is Ferrari. While Ferrari will produce fiber in the custom cars and refer to them as one-of-one, customization is relatively limited. There are 500 other versions of that custom, and their production line doesn't allow for the fluidity necessary to produce a one-of-one vehicle. Our customers are paying for exclusivity and quality, and our production lines were engineered from the beginning to allow for actual one-of-one customers.

Speaker Change: Beyond the base model and this is where our margin economics economics come from.

Mosley: Mosley, he basically $250000 the average grades.

Mosley: $7 with an average margin of 65% on those upgrades.

Mosley: The only other scale public automotive manufacturer that can offer comparable customization is Ferrari.

Speaker Change: Well Ferrari will produce fiber necrosis become one of warm customization is relatively limited.

Speaker Change: 500, other versions of that customer that production line doesn't align for the fluidity necessary to produce a one of one vehicle.

Scott Wallace: Our customers are paying for exclusivity and quality, and our production lines were engineered from the beginning to allow for actual one-on-one custom. A car moves off our line every four days. During that period, we can customize every element of that vehicle. Beyond the building of the car, we have learned that a broader ecosystem exists for customers, that desire white love experience. The Classic Car Ecosystem total addressable market is approximately $15 billion in the US. This TAM includes manufacturing, financial services, supply chain production, market channels, brokerage, and storage, and there is no dominant player within these markets.

Speaker Change: Our customers are paying for exclusivity and quality in our production lines were engineered from the beginning to allow for actual one upon costumes.

Scott Wallace: A car moves off our line every four days. During that period, we can customize every element of that vehicle.

Tom was off a line and before days during that period, we can customize every element of that vehicle.

Scott Wallace: Beyond the building of the car, we have learned that a broader ecosystem exists for customers that desire white glove experiences. The classic car ecosystem total addressable market is approximately $15 billion in the US. This can include manufacturing, financial services, supply chain production, market channels, brokerage, and storage, and there is no dominant player within these markets.

Speaker Change: Beyond the building of the call we have Linda a broader ecosystem exists for our customers.

Speaker Change: White live experiences and classic car ecosystem total addressable market is approximately $15 billion in the U S.

Tammy: Tammy Who's manufacturing financial services supply chain production market channels brokerage and storage and there is no dominant player within these markets.

Scott Wallace: We recently took another step toward building ECD as a number of luxury automotive brands, securing funding of $2 million. This funding will allow to enhance our efforts to provide unciliary services and revenue streams to our exclusive clientele. Thankfully, these paths to grow are not mutually exclusive. We will work for the factory as a ramp up and now third manufacturing line while looking for opportunities in organic growth and developing a number of luxury classic car brands.

Scott Wallace: We recently took another step toward building ECD as an umbrella luxury automotive brand by securing funding of $2 million. This funding will allow us to enhance our efforts to provide ancillary services and revenue streams to our exclusive clientele. Thankfully, these paths to grow a freestyle are not mutually exclusive.

Speaker Change: We recently took another step toward building a base number ela luxury automotive firms by securing funding of $2 million based funding will allow us to enhance our efforts to provide ancillary services and revenue screen streams to our exclusive clientele.

Speaker Change: Thankfully these paths to grow if rates they are not mutually exclusive.

Scott Wallace: We will work to fill the factory as we ramp up our now third manufacturing line, while looking for opportunities for inorganic growth and developing an umbrella luxury classic car brand. We hope this gives investors a better understanding of our current business and how we see the long-term opportunities in front of us. As a publicly-traded company, we'll be updating you on our progress frequently. With that, I'll pass the call over to Ray to go over our financial results and our expectations for the remainder of 2024. Ray.

Speaker Change: So the factory as we ramp up on name third manufacturing line, while looking for opportunities for inorganic growth and developed and are developing an umbrella luxury classic compound. We hope this gives them the best understanding of our current business and how we see the long term opportunity in front of us.

Scott Wallace: We hope this gives investors a better understanding about current business and how we see the long-term opportunities in front of us. As a publicly traded company, we'll be updating you on our progress frequently.

Speaker Change: The publicly traded company will be updating you on our progress frequently with that I'll pass the call over to Greg you're going about financial results and our expectations for the remainder of 2020 full rate.

Raymond Cole: With that, I'll pass the call over to Ray to go over our financial results and our expectations for the remainder of 2024.

Raymond Cole: Ray. Thank you, Scott.

Raymond Cole: Thank you, Scott, and good afternoon, everybody. I'll begin my overview of the second quarter of 2024 financial results. In the quarter, we reported revenues of $8.9 million compared to $3.9 million in the second quarter of 2023, representing an increase of 129 percent. The increase was primarily due increased unit sales and higher average selling price per vehicle by $46,604 and increased sales of used vehicles helped as well. Gross profit also increased 129% in the quarter to $2.8 million compared to $1.2 million in the year ago period. Second quarter gross margin also maintained the strength shown last year at 31.8% equal to the second quarter of last year. Sales and marketing expenses increased by 167% year over year.

Greg: Thank you Scott and good afternoon everybody.

Raymond Cole: Good afternoon, everybody. I'll begin the overview of the second, my overview of the second quarter of 2024 financial results. The quarter we reported revenues of $8.9 million compared to $3.9 million in the second quarter of 2023, representing an increase of 129%. The increase was primarily due to increased unit sales and higher average selling price per vehicle by $46,604, and increased sales of used vehicles helped as well. Both profit also increased 129% in the quarter to $2.8 million compared to $1.2 million in the year-ago period. Second quarter gross margin also maintained the strength shown last year at 31.8%, equal to the second quarter of last year.

Greg: I'll begin the overview of the second my overview of the second quarter 2024 financial results.

Raymond Cole: This increase was primarily driven by increased volume of advertising and press as the company expanded its marketing footprint and launched new products. Additionally, we engaged in a new outreach program, testing the product, and taking it on the road and bringing the product actually to sales events for customers to see, touch, feel, and buy. General and administrative expenses increased by 104% year-over-year. This increase was primarily driven by public company costs associated with additional investment in front office staff, insurance, and professional.

Greg: For the quarter, we reported revenues of $8 $9 million compared to $3 9 million in the second quarter of 2023, representing.

Greg: An increase of 129% the increase was primarily due increased unit sales and higher average selling price per vehicle by $46604 and increased sales of used vehicles helped as well.

Greg: Gross profit also increased to 129% in the quarter to $2.8 million compared to $1 $2 million in the year ago period.

Greg: Second quarter gross margin also maintained the strength shown last year at 31, 8% equal to the second quarter of last year.

Raymond Cole: Sales and marketing expenses increased by 160% to 7% year over year. This increase was primarily driven by increased volume of advertising and press as it can be expanded its marketing footprint and launch new products. Additionally, we engage in a new outreach program, testing the product and taking it on the road and bringing the product actually to sales events for customers to see, touch, feel, and buy. General and administrative expenses increased by 104% year over year. And this increase was primarily driven by public company costs associated with additional investment in front of staff, insurance, and professional fees.

Greg: Sales and marketing expenses increased by 167% year over year.

Speaker Change: This increase was primarily driven by increased volume of advertising and press as the company expanded its marketing footprint and launched new products. Additionally, we engaged in a new outreach program testing product and taking them on the road and bringing the product actually sales events for customers to see touch.

Speaker Change: <unk> field and buy.

Speaker Change: General and administrative expenses increased by 104% year over year.

Speaker Change: This increase was primarily driven by public company costs associated with additional investment in front office staff insurance and professional fees.

Raymond Cole: Income from operations was positive for the quarter at $117,000 compared to a loss of $19,000 in the year-of-o-period. That loss for the quarter was $900,000 or $3 per diluted share compared to a loss of $2.5 million or $5 per diluted share in the year-of-o-period.

Raymond Cole: Income from operations was positive for the quarter at $117,000 compared to a loss of $19,000 in the year ago period. Net loss for the quarter was $900,000, or $0.03 per diluted share, compared to a loss of $2.5 million, or $0.05 per diluted share in the year-ago period.

Speaker Change: Income from operations was positive for the quarter at $117000 compared to a loss of $19000 in the year ago period.

Speaker Change: Net loss for the quarter was $900000 or three cents per diluted share compared to a loss of $2 5 million or five cents per diluted share in the year ago period.

Raymond Cole: Now, I'll turn to the balance sheet a bit. Our cash balance as of June 30 was $5.6 million compared to $8.1 million at the end of 2023. As Scott mentioned, our cash figures will grow by $2 million with a completion of the previously mentioned capital race. Looking into 2024, we previously stated a full-year revenue growth target of 100%, and we believe that remains true today. Going forward, capital allocation priorities remain on parts and mechanics, with occasional opportunistic acquisitions when opportunities present themselves.

Raymond Cole: Now turning to the balance sheet a bit, our cash balance as of June 30 was $5.6 million compared to $8.1 million, at the end of 2023. As Scott mentioned, our cash provision will grow by $2 million with the completion of the previously mentioned capital rate, looking into 2024. We previously stated a full year revenue growth target of 100% and we believe that remains true today. Going forward, capital allocation priorities remain on parts and mechanics with occasional opportunistic acquisition when opportunities present themselves. I'll now pass the call back to Scott for some closing remarks. Scott?

Speaker Change: Now turning to the balance sheet a bit our cash balance as of June 30 was $5 $6 million compared to $8 1 million.

Speaker Change: At the end of 2023.

Scott Wallace: As Scott mentioned casting is more grow by $2 million was the completion of the previously mentioned capital race.

Scott Wallace: Looking into 2024.

Scott Wallace: As previously stated our full year revenue growth target of 100% and we believe that remains true today.

Scott Wallace: Going forward capital allocation priorities remain on parts and mechanics lien occasional opportunistic acquisition opportunities.

Scott Wallace: <unk> present themselves.

Raymond Cole: I'll now pass the call back to Scott for some closing remarks.

Scott Wallace: I'll now pass the call back to Scott for some closing remarks Scott.

Scott Wallace: Scott? Thanks, Ray. ECD Auto Design is a labour of love for those of us involved with this company. We believe the Classic Gallery consistently represents a uniquely attractive opportunity for our customers and investors.

Scott Wallace: Thanks, Ray. ECG auto design is a labor of love for those of us involved with it. We believe the Classic Car Ecosystem represents a uniquely attractive opportunity for our customers and investors. I'm happy to finally be able to share our story with the broader public and look forward to the future updates. We intend to have robust investor outreach programs, so we look forward to participating in future investor conferences, meeting new investors, and hosting investor events at our Florida factory.

Scott Wallace: Thanks Ray.

Scott Wallace: E. C. D also designed as a labor of love for those of US involved with this company.

Scott Wallace: We believe the classic car ecosystem represents a uniquely attractive opportunity for our customers and investors.

Scott Wallace: I'm happy to finally be able to share our story with a broader public and look forward to the future updates. We intend to have robust investor outreach programs, so we look forward to participating in future investor conferences, meeting new investors, and hosting investor events at our Florida factory. You can also stay current on ECD by following our IR handle on X at ECD Investor R.E.

Speaker Change: Happy to finally be able to share our story with a broader public and look forward to the future updates we.

Speaker Change: We intend to invest ramping programs. So we look forward to participate in the future investor competencies, making new investments and hosting Investor event, Florida factory.

Scott Wallace: You can also stay current on ECD by following our IR handle on x at ECDinvestor.ie. Thank you so much for your time today. We'll now open up the call to questions. Operator. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys.

Speaker Change: Can also stay current on ACD, but following our IR handle on X E C D Investor R E.

Scott Wallace: Thank you so much for your time today. We'll now open up the call to questions of Rayson.

Speaker Change: So much for your time today, we'll now open up the call to questions operator.

Speaker Change: Okay.

Scott Wallace: Thank you.

Speaker Change: Thank you we will now begin the question and answer session can I ask a question you May Press Star then one on your telephone keypad, if youre using a speakerphone. Please pick up your handset before pressing the keys.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you're using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two.

Speaker Change: At any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Theodore Onio: First question comes from Theodore Onio with Lichfield Hills Research.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star, then 2. First question comes from Theodore O'Neill with Litchfield Hills Research. Please go ahead. Thank you very much. Scott, I was wondering, just a couple of questions here. Could you talk about the integration of the brand new muscle car and specifically talking about the supply chain integration and production? floor changes at the Rover Dome to accommodate the Mustang.

Speaker Change: First question comes from Theodore O'neill with Litchfield Hills Research. Please go ahead.

Theodore Onio: Please go ahead. Thank you very much.

Theodore O'Neill: Thank you very much.

Scott Wallace: Scott, I was wondering just a couple of questions here. Could you talk about the integration of the brand new muscle car and specifically talking about the supply chain integration and production floor changes at the Rover Dome to accommodate the Mustangs?

Theodore O'Neill: I was wondering just a couple of questions here could you talk about the integration of the brand new muscle car I'm, specifically talking about the supply chain integration and production.

Speaker Change: Changes at the Rover dome to accommodate the Mustangs.

Operator: Yeah, great question and we spent some time on that this morning for a weekly production meeting. The Mustang integration is going great, you know, when we made the acquisition with Brand New Muscle Car, the intention was to bring in knowledge from people that had built this product before. So that's exactly what we've got. The Jaguar E-Type took us 14 months from an idea to conception when we did it on our own.

Scott Wallace: Yeah, great question. And we spent some time in that this morning for your weekly production meeting. The Mustang integration is going great. You know, when we made the acquisition with brand new muscle car, intention was to bring in knowledge from people that had built this product before. So that's exactly what we've got. The Jagger E type took us 14 months from an idea to conception when we did it on our own. The Mustang is going to take us closer to four to five months. So we are just about to make the line changes now. The first Mustang is going into production very soon.

Speaker Change: Yeah, Great question, and we spent some time this morning.

We kept production meeting and the Mustang integration is going great.

Speaker Change: You know when we made the acquisition with Brian you must recall intention was to bring in knowledge from the people that built this product before so that's exactly what we've got and the Jaguar Retype took US 14 months from an idea to conception. When we did it in around the Mustang is going to take us closer to four to five months. So we are just the bank to make the long changes name.

Scott Wallace: The Mustang is going to take us closer to four to five months. So we are just about to make the line changes now. The first Mustang is going into production very soon. It will be finished this year, as will the FJ actually. So we're not doing one integration move, we're actually moving production around in the line so that we can integrate both the Mustang and the FJ. So both of those products will be leaving production this year. Supply chain is relatively easy. We've got nothing, obviously, to import globally. Everything is domestic.

Speaker Change: The first Mustang is going into production very soon it will be finished this year as will the FDA actually so we're not doing one integration move we're actually moving production around in the line. So that we can integrate both the Mustang on the FDA. So both of those projects will be leaving production this year and its supply chain is relatively easy.

Scott Wallace: It will be finished this year as well, the FJ actually. So we're not doing one integration move. We're actually moving production around in the line so that we can integrate both the Mustang and the FJ. So both of those projects will be leaving production this year. Supply chain is relatively easy. We've got nothing obvious to import globally. Everything is domestic. That saves us time and saves us costs and shipping lines. So yeah, I mean it's going as it's better than we expected, really. I mean we'll prove that putting will be in the next four weeks when we move one production line off that line and move the Mustang into it.

Speaker Change: We've we've got nothing obviously to import globally everything is domestic that saves us time, and say this cost and shipping lines.

Scott Wallace: That saves us time and saves us cost in shipping lines. So, yeah, I mean, it's going as better than we expected, really. I mean, proof of the pudding will be in the next four weeks when we move one production line off that line and move the Mustang into it. But, yeah, we're in good shape.

Speaker Change: So yeah, I mean, it's going as expected and we expected really I mean, we I mean will prove to the pudding will be in the next four weeks. When we moved one production line up that line and move the Mustang into it but yeah. We're at we're in good shape with comfort and see if we've got some exciting news coming up in the next few weeks hopefully you know we're working on some things behind the scenes to just elevate the Mustang.

Scott Wallace: But yeah, we're in good shape. We're confident about it.

Scott Wallace: We're confident about it. We've got some exciting news coming up in the next few weeks, hopefully. You know, we're working on some things behind the scenes to just elevate the Mustang, and I think they'll be really good additions to what we've been working on already. So, yeah, we're excited about the Mustang integration. It's going to plan, and we're looking forward to taking the first one off the line in Q4. OK, and I wonder if you'd care to comment, qualitatively or quantitatively however you would like about through the the backlog of business and uh... or the order book or whether using order change over time.

Scott Wallace: We've got some exciting news coming up in the next few weeks, hopefully. You know, we're working on some things behind the scenes to just elevate the Mustang. And I think they'll be really good additions to what we've been working on already. So, yeah, we're excited about the Mustang integration. It's going to plan, and we're looking forward to taking the first one off the line in Q4.

Speaker Change: And I think that'll be really good additions to what we've been working on already so yeah. We're excited about the Mustang integration he said he's.

Speaker Change: He's going to plan and we're looking forward to take the first one off the line in Q4.

Scott Wallace: Okay, and I wonder if you could care to comment qualitatively or quantitatively, however you would like, about the backlog of business and the order book or whether you're seeing orders change over time. Yeah, backtalks have been interesting; typically, summer is now quite the month, but this year we've seen 50% growth on year and year. So, but not only that, but it's coming from where you would think it would come from now with having we call them new toys in the toy chest, so having Mustang, having FGA, having Defender, E-type, render of a classic key, we've got that ability to appeal to broader audience.

Speaker Change: Okay, and I Wonder if you could care to comment.

Speaker Change: Qualitatively or quantitatively. However, you would like about the backlog of business and or the order book or whether you're seeing orders.

Speaker Change: <unk> over time.

Scott Wallace: Yeah, Backlog's been interesting. Typically, summer is our quieter months, but this year we've seen a 50% growth on year-on-year. Not only that, but it's coming from where you would think it would come from now with having, we call them new toys in the toy chest. Having Mustang, having FJ, having Defender, E-Type, Range Rover Classic.

Speaker Change: Yeah that talks been interest I mean, typically somebody that had quite the months, but this year, we've seen a 50% growth on year on year.

So not only that but it's coming from what you would think it would come from there with having we call them new toys in the toy chest, having Mustang, having F. J, having defender eight type range with a classic can we call the ability to appeal to a broader audience. So the backlog is fitting nicely. We've just had our most you know we've got the most impressive summer since the conception of the business I mean code.

Scott Wallace: We've got that ability to appeal to a broader audience. So Backlog is feeling nice, and we've just had our most impressive summer since the conception of the business. I mean, COVID was a great year, oddly, for sales, when people had no downtime, when people had plenty of downtime, but this beat those expectations as well. So having that broader mix of toys in the toy box just allows us to appeal to a broader mix of people, and we're selling more units as a result of that, particularly over the last three months.

Scott Wallace: So, backlog is pretty nice, and we've just had our most, you know, we've had our most impressive summer since the conception of the business. I mean, code was a great year-oldly for sales when people had no downtime, when people had plenty of downtime, but this beat those expectations as well. So, having that broader mix of toys in the toy box just allows us to appeal to a broader mix of people. And, you know, we're selling more units as a result of that, particularly over the last three months. Okay.

Speaker Change: It was a great year old Lee for sales when people with no downtime when put people at plenty of downtime, but it did beat those expectations as well so having that broad and makes it toys in the toy box just the language is to appeal to a broader mix of people and you know we're selling more units as a result of that particularly over the last three months.

Operator: Okay, thanks very much. There are no more questions in the queue. So this concludes the question and answer session and today's conference call. Thank you for attending today's presentation. You may now disconnect.

Speaker Change: Okay. Thanks very much.

Speaker Change: Okay.

Operator: There are no more questions in the queue.

Speaker Change: There are no more questions in the queue.

Operator: So, this concludes the question and at the session and today's conference call. Thank you for attending today's presentation.

Speaker Change: To conclude the question and answer session and today's conference call.

Thank you for that.

Speaker Change: Attending today's presentation you may now disconnect.

Operator: You may now disconnect.

Speaker Change: [music].

Speaker Change: Yeah.

Operator: Good day and welcome to the ECD AutoDesign 2nd quarter 2024 earnings conference call.

Operator: Good day and welcome to the ECD AutoDesign 2nd quarter 2024 earnings conference call. All participants will be in listen only mode. Should you need assistance please signal a conference specialist by pressing the star key followed by zero.

Operator: All participants will be in listen only mode. Should you need assistance please signal a conference specialist by pressing the star key followed by zero.

Operator: After today's presentation there will be an opportunity to ask questions.

Operator: After today's presentation there will be an opportunity to ask questions. To ask a question you may press star then one on your telephone keypad. To withdraw your question please press star then two. Please note this event is being recorded.

Operator: To ask a question you may press star then one on your telephone keypad. To withdraw your question please press star then two.

Operator: Please note this event is being recorded.

Brian Prinibu: I would now like to turn the conference over to Brian Prinibu investor relations.

Brian Prinibu: I would now like to turn the conference over to Brian Prinibu investor relations. Please go ahead. Thank you operator and good afternoon everyone.

Brian Prinibu: Please go ahead.

Brian Prinibu: Thank you operator and good afternoon everyone.

Brian Prinibu: Welcome to the ECD AutoDesign 2nd quarter 2024 earnings webcast and conference call.

Brian Prinibu: Welcome to the ECD AutoDesign 2nd quarter 2024 earnings webcast and conference call. Today's date is August 19th 2024.

Brian Prinibu: Today's date is August 19th 2024.

Brian Prinibu: Now on the call today from ECD AutoDesign are Scott Wallace founder and chief executive officer and Raymond Cole chief financial officer.

Brian Prinibu: Now on the call today from ECD AutoDesign are Scott Wallace founder and chief executive officer and Raymond Cole chief financial officer. Before we begin I'd like to remind everyone that this call may contain forward looking statements as they are defined under the private securities litigation reform act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward looking statements.

Brian Prinibu: Before we begin I'd like to remind everyone that this call may contain forward looking statements as they are defined under the private securities litigation reform act of 1995.

Brian Prinibu: For a discussion of such risks and uncertainties please see ECD AutoDesign's most recent filings with the SEC. All for the statement may today reflect our current expectations only and we undertake no obligation to update any statement to reflect the events that occur after this call. Also during the course of today's call the company will be discussing one or more non-gap financial measures. Reconciliation of these non-gap financial measures to the most directly comparable gap measures are included in the press release we issued this afternoon. Copies of today's press release are accessible on ECDA's investor website. ECD AutoDesign.com. In addition ECDA's Form 10K and 10Qs are also available on ECDA's investor relations website.

Brian Prinibu: These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward looking statements.

Brian Prinibu: For a discussion of such risks and uncertainties please see ECD AutoDesign's most recent filings with the SEC.

Brian Prinibu: All for the statement may today reflect our current expectations only and we undertake no obligation to update any statement to reflect the events that occur after this call.

Brian Prinibu: Also during the course of today's call the company will be discussing one or more non-gap financial measures. Reconciliation of these non-gap financial measures to the most directly comparable gap measures are included in the press release we issued this afternoon.

Brian Prinibu: Copies of today's press release are accessible on ECDA's investor website.

Brian Prinibu: ECD AutoDesign.com.

Brian Prinibu: In addition ECDA's Form 10K and 10Qs are also available on ECDA's investor relations website.

Brian Prinibu: Now I'd like to turn the call over to founder and chief executive officer Scott Wallace.

Scott Wallace: Now I'd like to turn the call over to founder and chief executive officer Scott Wallace. Scott. Thanks Brian.

Scott Wallace: Scott.

Scott Wallace: Thanks Brian.

Scott Wallace: First I'd like to thank our shareholders and those interested in EC AutoDesign for joining the call.

Scott Wallace: First I'd like to thank our shareholders and those interested in EC AutoDesign for joining the call. This is our first go-around reporting earnings and holding a conference calls of public company so we've learned a lot and appreciate everyone's patience.

Scott Wallace: This is our first go-around reporting earnings and holding a conference calls of public company so we've learned a lot and appreciate everyone's patience.

Scott Wallace: For those that are new to ECD automotive design story we are the world leader in classic British car restoration.

Scott Wallace: For those that are new to ECD automotive design story we are the world leader in classic British car restoration. We have two facilities in operation and manufacturing planting Kazemi Florida which we call the Rover Dome and logistics and fulfillment center in the UK. We manufacture custom classic Land Rover defenders, rain grovers and Jaguar E types as restamots. Our one-of-one builds carry a selling price of between $300,000 and $400,000. Early this year we announced the addition of American muscle cars which provides us a great opportunity to begin building classic Mustangs and other classic American cars.

Scott Wallace: We have two facilities in operation and manufacturing planting Kazemi Florida which we call the Rover Dome and logistics and fulfillment center in the UK.

Scott Wallace: We manufacture custom classic Land Rover defenders, rain grovers and Jaguar E types as restamots.

Scott Wallace: Our one-of-one builds carry a selling price of between $300,000 and $400,000.

Scott Wallace: Early this year we announced the addition of American muscle cars which provides us a great opportunity to begin building classic Mustangs and other classic American cars.

Scott Wallace: We also announced the addition of black dot trading in June which provides us the opportunity to look for models of the iconic Toyota FJ.

Scott Wallace: We also announced the addition of black dot trading in June which provides us the opportunity to look for models of the iconic Toyota FJ. ECD is not the usual SPAC company and we have been delivering custom automobiles for over 10 years. The company started with a $150,000 investment with our outside capital of vendor credit terms. We have now built over 550 custom cars to date and the company has generated over 100 million in lifetime revenues with gross margins, approximate to those of Ferrari.

Scott Wallace: ECD is not the usual SPAC company and we have been delivering custom automobiles for over 10 years.

Scott Wallace: The company started with a $150,000 investment with our outside capital of vendor credit terms. We have now built over 550 custom cars to date and the company has generated over 100 million in lifetime revenues with gross margins, approximate to those of Ferrari.

Scott Wallace: Up until we took the company public via these SPAC late last year, the business was self-funded to internally generated cash flow for over a decade.

Scott Wallace: Up until we took the company public via these SPAC late last year, the business was self-funded to internally generated cash flow for over a decade. Being a public company was never really our intention, but the demand for our product and the fact for opportunity have led us to where we are today.

Scott Wallace: Being a public company was never really our intention, but the demand for our product and the fact for opportunity have led us to where we are today.

Scott Wallace: When we formed the business, we had to disrupt the automotive sector and industry. The automotive sector has been relatively stagnant for years and we feel we found a new operating model. I have planulated the customer at the centre of our process and provides an experience not typically affiliated with auto sales. We are looking to let mechanics be created and build a product rather than maintain a product. Keeping our team excited and engaged, we follow a retention model instead of a recruitment model for our team.

Scott Wallace: We are looking to let mechanics be created and build a product rather than maintain a product.

Scott Wallace: Keeping our team excited and engaged, we follow a retention model instead of a recruitment model for our team.

Scott Wallace: We build one of one vehicles with the intellectual property earned by the client. We do everything in house, ensuring quality across all phases is the highest standard.

Scott Wallace: We build one of one vehicles with the intellectual property earned by the client. We do everything in house, ensuring quality across all phases is the highest standard. Lastly, we only take projects that excite us and our team. Today, we have over 550 of our vehicle being driven around the world.

Scott Wallace: Lastly, we only take projects that excite us and our team.

Scott Wallace: Today, we have over 550 of our vehicle being driven around the world.

Scott Wallace: Our success to the state primarily lies in our strict capital allocation approach. We deploy capital to the right areas without any excess. We invest in mechanics and parts for ensure we could always build cars and drive working capital velocity.

Scott Wallace: The opportunity to scale is to de-follow three paths.

Scott Wallace: The opportunity to scale is to de-follow three paths. Organic, inorganic, viral up of sub-skill operators and classic curry consistent. I will discuss each path in detail.

Scott Wallace: Organic, inorganic, viral up of sub-skill operators and classic curry consistent.

Scott Wallace: I will discuss each path in detail.

Scott Wallace: With the addition of American muscle cars and black belt trading, we can begin taking orders for the third line. The capability delivery of 180 cars per year, with every selling price of roughly $350,000, will put into the revenue near $65 million annually, double what we anticipate during 2024.

Scott Wallace: This model features minimal acquisition costs and a low entry point of capital expenditures, adding a new model in the future would only cost approximately $150,000, which is the bill of materials. This low integration costs speed to our ability to roll up sub-skill ultra manufacturers who have developed a densifiable niche that whose operation needs to allow for meaningful growth. By folding these manufacturers with an ECD, we can add them to our target line in incremental steps with minimal investment required.

Scott Wallace: For the second quarter, ECD reported revenue of $8.9 of 129 per year over year, with gross margins of 31.8 per cent.

Scott Wallace: As ECD is a new company in the public market, I'd like to take some time to go over its past before discussing its future.

Scott Wallace: As we drive towards our 2024 revenue expectations, ECD will have delivered revenue continental growth rates of 30 per cent in 2018.

Scott Wallace: As our revenues grow so does our profitability.

Scott Wallace: The secret here has to do with increased customization.

Scott Wallace: The secret here has to do with increased customization. Our clients are not cash-starved. They are time and creativity-starved. We've resolved these limiting factors by patenting the client in an immersive design experience. We hold our hand through several choices beyond the base model and this is where our margin economics come from. The base model ECD vehicle is $250,000. The average upgrade is roughly $80,000, with an average margin of 65% on those upgrades.

Scott Wallace: Our clients are not cash-starved. They are time and creativity-starved. We've resolved these limiting factors by patenting the client in an immersive design experience. We hold our hand through several choices beyond the base model and this is where our margin economics come from.

Scott Wallace: The base model ECD vehicle is $250,000. The average upgrade is roughly $80,000, with an average margin of 65% on those upgrades.

Scott Wallace: The only other scale public automotive manufacturer that can offer comparable customization is Ferrari.

Scott Wallace: The only other scale public automotive manufacturer that can offer comparable customization is Ferrari. While Ferrari will produce fiber in the custom cars and refer to them as one-of-one, customization is relatively limited. There are 500 other versions of that custom and their production line doesn't allow for the fluidity necessary to produce a one-of-one vehicle. Our customers are paying for exclusivity and quality and our production lines were engineered from the beginning to allow for actual one-of-one customers. A car moves off our line every four days. During that period we can customize every element of that vehicle.

Scott Wallace: While Ferrari will produce fiber in the custom cars and refer to them as one-of-one, customization is relatively limited.

Scott Wallace: There are 500 other versions of that custom and their production line doesn't allow for the fluidity necessary to produce a one-of-one vehicle.

Scott Wallace: Our customers are paying for exclusivity and quality and our production lines were engineered from the beginning to allow for actual one-of-one customers. A car moves off our line every four days. During that period we can customize every element of that vehicle.

Scott Wallace: Beyond the building of the car, we have learned that a broader ecosystem exists for customers that desire white glove experiences.

Scott Wallace: Beyond the building of the car, we have learned that a broader ecosystem exists for customers that desire white glove experiences. The classic car ecosystem total dressable market is approximately $15 billion in the US. This can include manufacturing, financial services, supply chain production, market channels, brokerage and storage and there is no dominant player within these markets.

Scott Wallace: The classic car ecosystem total dressable market is approximately $15 billion in the US. This can include manufacturing, financial services, supply chain production, market channels, brokerage and storage and there is no dominant player within these markets.

Scott Wallace: We recently took another step toward building ECD as a number of luxury automotive brands, a securing funding of $2 million.

Scott Wallace: We recently took another step toward building ECD as a number of luxury automotive brands, a securing funding of $2 million. This funding will allow to enhance our efforts to provide uncillary services and revenue streams to our exclusive clientele. Thankfully, these paths to grow are not mutually exclusive.

Scott Wallace: This funding will allow to enhance our efforts to provide uncillary services and revenue streams to our exclusive clientele.

Scott Wallace: Thankfully, these paths to grow are not mutually exclusive.

Scott Wallace: We will work for the factory as a ramp up and now third manufacturing line while looking for opportunities in organic growth and developing a number of luxury classic car brands. We hope this gives investors a better understanding about current business and how we see the long-term opportunities in front of us.

Scott Wallace: As a publicly-traded company, we'll be updating you on our progress frequently.

Raymond Cole: With that, I'll pass the call over to Ray to go over our financial results and our expectations for the remainder of 2024.

Raymond Cole: With that, I'll pass the call over to Ray to go over our financial results and our expectations for the remainder of 2024. Ray. Thank you, Scott.

Raymond Cole: Ray.

Raymond Cole: Thank you, Scott.

Raymond Cole: Good afternoon, everybody.

Raymond Cole: Good afternoon, everybody. I'll begin the overview of the second, my overview of the second quarter of 2024 financial results. The quarter we reported revenues of $8.9 million compared to $3.9 million in the second quarter of 2023, representing an increase of 129%. The increase was primarily due increased unit sales and higher average selling price per vehicle by $46,604, and increased sales of used vehicles helped as well. Both profit also increased 129% in the quarter to $2.8 million compared to $1.2 million in the year ago period.

Raymond Cole: I'll begin the overview of the second, my overview of the second quarter of 2024 financial results. The quarter we reported revenues of $8.9 million compared to $3.9 million in the second quarter of 2023, representing an increase of 129%. The increase was primarily due increased unit sales and higher average selling price per vehicle by $46,604, and increased sales of used vehicles helped as well. Both profit also increased 129% in the quarter to $2.8 million compared to $1.2 million in the year ago period.

Raymond Cole: Second quarter gross margin also maintained the strength shown last year at 31.8% equal to the second quarter of last year. Sales and marketing expenses increased by 160% to 7% year over year. This increase was primarily driven by increased volume of advertising and press as it can be expanded its marketing footprint and launch new products. Additionally, we engage in a new outreach program, testing the product and taking an on-the-road and bringing the product actually to sales events for customers to see, touch, feel and buy.

Raymond Cole: Second quarter gross margin also maintained the strength shown last year at 31.8% equal to the second quarter of last year.

Raymond Cole: Additionally, we engage in a new outreach program, testing the product and taking an on-the-road and bringing the product actually to sales events for customers to see, touch, feel and buy.

Raymond Cole: General and administrative expenses increased by 104% year over year. And this increase was primarily driven by public company costs associated with additional investment in front of staff, insurance, and professional fees. Income from operations was positive for the quarter at $117,000 compared to a loss of $19,000 in the year-of-o-period. That loss for the quarter was $900,000 or $3 per diluted share compared to a loss of $2.5 million or $5 per diluted share in the year-of-o-period.

Raymond Cole: Income from operations was positive for the quarter at $117,000 compared to a loss of $19,000 in the year-of-o-period.

Raymond Cole: That loss for the quarter was $900,000 or $3 per diluted share compared to a loss of $2.5 million or $5 per diluted share in the year-of-o-period.

Raymond Cole: Now, I'll turn to the balance sheet a bit. Our cash balance as of June 30 was $5.6 million compared to $8.1 million at the end of 2023. As Scott mentioned, our cash figures will grow by $2 million with a completion of the previously mentioned capital race. Looking into 2024, we previously stated a full-year revenue growth target of 100% and we believe that remains true today. Going forward, capital allocation priorities remain on parts and mechanics with occasional opportunistic acquisitions when opportunities present themselves.

Raymond Cole: Looking into 2024, we previously stated a full-year revenue growth target of 100% and we believe that remains true today.

Raymond Cole: Going forward, capital allocation priorities remain on parts and mechanics with occasional opportunistic acquisitions when opportunities present themselves.

Raymond Cole: I'll now pass the call back to Scott for some closing remarks.

Scott Wallace: I'll now pass the call back to Scott for some closing remarks. Scott? Thanks, Ray.

Scott Wallace: Scott?

Scott Wallace: Thanks, Ray.

Scott Wallace: ECD Auto Design is a labour of love for those of us involved with this company.

Scott Wallace: ECD Auto Design is a labour of love for those of us involved with this company. We believe the Classic Gallery consistent represents a uniquely attractive opportunity for our customers and investors. I'm happy to finally be able to share our story with a broader public and look forward to the future updates. We intend to have robust investor outreach programs so we look forward to participating in future investor conferences, meeting new investors and hosting investor events at our Florida factory. You can also stay current on ECD by following our IR handle on X at ECD Investor R.E.

Scott Wallace: We believe the Classic Gallery consistent represents a uniquely attractive opportunity for our customers and investors.

Scott Wallace: I'm happy to finally be able to share our story with a broader public and look forward to the future updates.

Scott Wallace: We intend to have robust investor outreach programs so we look forward to participating in future investor conferences, meeting new investors and hosting investor events at our Florida factory.

Scott Wallace: You can also stay current on ECD by following our IR handle on X at ECD Investor R.E.

Scott Wallace: Thank you so much for your time today.

Raymond Cole: We'll now open up the call to questions of Rayson.

Scott Wallace: We'll now open up the call to questions of Rayson.

Raymond Cole: Thank you.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two.

Operator: We will now begin the question and answer session.

Operator: To ask a question, you may press star then one on your telephone keypad.

Operator: If you're using a speaker phone, please pick up your handset before pressing the keys.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then two.

Theodore Onio: First question comes from theodore Onio with Lichfield Hills Research.

Theodore Onio: First question comes from theodore Onio with Lichfield Hills Research. Please go ahead. Thank you very much. Scott, I was wondering just a couple of questions here. Could you talk about the integration of the brand new muscle car and specifically talking about the supply chain integration and production floor changes at the rover dome to accommodate the Mustangs? Yeah, great question. And we spent some time in that this morning for your weekly production meeting.

Theodore Onio: Please go ahead.

Theodore Onio: Thank you very much.

Scott Wallace: Scott, I was wondering just a couple of questions here.

Scott Wallace: Could you talk about the integration of the brand new muscle car and specifically talking about the supply chain integration and production floor changes at the rover dome to accommodate the Mustangs? Yeah, great question.

Scott Wallace: And we spent some time in that this morning for your weekly production meeting.

Scott Wallace: The Mustang integration is going great. You know, when we made the acquisition with brand new muscle car intention was to bring in knowledge from people that had built this product before.

Theodore Onio: The Mustang integration is going great. You know, when we made the acquisition with brand new muscle car intention was to bring in knowledge from people that had built this product before. So that's exactly what we've got. The Jagger E type took us 14 months from an idea to conception when we did it on our own. The Mustang is going to take us closer to four to five months. So we are just about to make the line changes now.

Scott Wallace: So that's exactly what we've got.

Scott Wallace: The Jagger E type took us 14 months from an idea to conception when we did it on our own.

Scott Wallace: The Mustang is going to take us closer to four to five months.

Scott Wallace: So we are just about to make the line changes now.

Scott Wallace: The first Mustang is going into production very soon.

Theodore Onio: The first Mustang is going into production very soon. It will be finished this year as well the FJ actually. So we're not doing one integration move. We're actually moving production around in the line so that we can integrate both the Mustang and the FJ. So both of those projects will be leaving production this year. Supply chain is relatively easy. We've got nothing obvious to import globally. Everything is domestic. That saves us time and saves us costs and shipping lines.

Scott Wallace: It will be finished this year as well the FJ actually.

Scott Wallace: So we're not doing one integration move.

Scott Wallace: We're actually moving production around in the line so that we can integrate both the Mustang and the FJ.

Scott Wallace: So both of those projects will be leaving production this year.

Scott Wallace: Supply chain is relatively easy.

Scott Wallace: We've got nothing obvious to import globally.

Scott Wallace: Everything is domestic. That saves us time and saves us costs and shipping lines.

Scott Wallace: So yeah, I mean it's going as it's better than we expected really.

Theodore Onio: So yeah, I mean it's going as it's better than we expected really. I mean we'll prove that putting will be in the next four weeks when we move one production line off that line and move the Mustang into it. But yeah, we're in good shape. We're confident about it. We've got some exciting news coming up in the next few weeks hopefully. You know, we're working on some things behind the scenes to just elevate the Mustang.

Scott Wallace: I mean we'll prove that putting will be in the next four weeks when we move one production line off that line and move the Mustang into it.

Scott Wallace: But yeah, we're in good shape.

Scott Wallace: We're confident about it.

Scott Wallace: We've got some exciting news coming up in the next few weeks hopefully. You know, we're working on some things behind the scenes to just elevate the Mustang. And I think they'll be really good additions to what we've been working on already.

Theodore Onio: And I think they'll be really good additions to what we've been working on already. So yeah, we're excited about the Mustang integration. It's going to plan and we're looking forward to taking the first one off the line in Q4. Okay, and I wonder if you could care to comment qualitatively or quantitatively, however you would like about the backlog of business and the order book or whether you're seeing orders change over time.

Scott Wallace: So yeah, we're excited about the Mustang integration.

Scott Wallace: It's going to plan and we're looking forward to taking the first one off the line in Q4.

Scott Wallace: Okay, and I wonder if you could care to comment qualitatively or quantitatively, however you would like about the backlog of business and the order book or whether you're seeing orders change over time.

Scott Wallace: Yeah, backtalks have been interesting, typically summer is now quite the month, but this year we've seen 50% growth on year and year.

Theodore Onio: Yeah, backtalks have been interesting, typically summer is now quite the month, but this year we've seen 50% growth on year and year. So, but not only that, but it's coming from where you would think it would come from now with having we call them new toys in the toy chest, so having Mustang, having FGA, having defender, e-type, render of a classic key, we've got that ability to appeal to broader audience. So, backlog is pretty nice and we've just had our most, you know, we've had our most impressive summer since the conception of the business.

Scott Wallace: So, but not only that, but it's coming from where you would think it would come from now with having we call them new toys in the toy chest, so having Mustang, having FGA, having defender, e-type, render of a classic key, we've got that ability to appeal to broader audience.

Scott Wallace: So, backlog is pretty nice and we've just had our most, you know, we've had our most impressive summer since the conception of the business.

Scott Wallace: I mean, code was a great year-oldly for sales when people had no downtime, when people had plenty of downtime, but this beat those expectations as well.

Theodore Onio: I mean, code was a great year-oldly for sales when people had no downtime, when people had plenty of downtime, but this beat those expectations as well. So, having that broader mix of toys in the toy box just allows us to appeal to broader mix of people. And, you know, we're selling more units as a result of that, particularly over the last three months. Okay. Thanks very much. There are no more questions in the queue. So, this concludes the question and at the session and today's conference call. Thank you for attending today's presentation. You may now disconnect.

Scott Wallace: So, having that broader mix of toys in the toy box just allows us to appeal to broader mix of people. And, you know, we're selling more units as a result of that, particularly over the last three months.

Scott Wallace: Okay.

Scott Wallace: Thanks very much.

Operator: There are no more questions in the queue.

Operator: So, this concludes the question and at the session and today's conference call.

Operator: Thank you for attending today's presentation.

Operator: You may now disconnect.

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