Get Cash Back and $0 Commissions
+ The Power of TradeStation
Business Wire 23-Apr-2018 4:19 PM
Carvana Co. (NYSE:CVNA), a leading eCommerce platform for buying used cars ("Carvana" or the "Company"), today announced certain preliminary estimates of its operating results for the three months ended March 31, 2018 compared to its actual operating results for the three months ended March 31, 2017.
The preliminary financial data included below has been prepared by, and is the responsibility of, Carvana's management. Carvana's independent auditors have not audited, reviewed, compiled or performed any procedures with respect to such preliminary financial data. These preliminary operating results are not a comprehensive statement of Carvana's financial results as of and for the three months ended March 31, 2018, and should not be viewed as a substitute for full consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States.
Carvana is providing the following preliminary estimates of its operating results for the three months ended March 31, 2018:
A reconciliation of EBITDA to net loss, the most directly comparable GAAP measure, and the calculation of EBITDA margin are as follows:
Actual | Estimated | |||||||||
Three Months Ended March 31, | ||||||||||
2017 | 2018 | |||||||||
(in thousands) | ||||||||||
Net loss | $ | (38,439 | ) | $ | (53,000 | ) | ||||
Depreciation and amortization expense | 2,061 | 4,600 | ||||||||
Interest expense | 2,059 | 3,500 | ||||||||
EBITDA | $ | (34,319 | ) | $ | (44,900 | ) | ||||
Total revenues | $ | 159,073 | $ |
360,000 |
||||||
EBITDA Margin | (21.6 | %) | (12.5 | %) | ||||||
About Carvana Co.
Founded in 2012 and based in Phoenix, Carvana's (NYSE:CVNA) mission is to change the way people buy cars. By removing the traditional dealership infrastructure and replacing it with technology and exceptional customer service, Carvana offers consumers an intuitive and convenient online automotive retail platform. Carvana.com enables consumers to quickly and easily buy a car online, including finding their preferred vehicle, qualifying for financing, getting a trade-in value, signing contracts, and receiving as-soon-as-next-day delivery or pickup of the vehicle from one of Carvana's proprietary automated Car Vending Machines.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company's current expectations and projections with respect to, among other things, its financial condition, results of operations, plans, objectives, future performance, and business. These statements may be preceded by, followed by or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "intend," "likely," "outlook," "plan," "potential," "project," "projection," "seek," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning. Forward-looking statements include all statements that are not historical facts. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of this date. Carvana does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise.
Use of Non-GAAP Financial Measures
The information in this press release includes EBITDA and EBITDA Margin, non-GAAP financial measures within the meaning of applicable SEC rules and regulations. EBITDA and EBITDA Margin are non-GAAP supplemental measures of operating performance that do not represent and should not be considered an alternative to net loss or cash flow from operations, as determined by U.S. generally accepted accounting principles. EBITDA is defined as net loss before interest expense, income tax expense and depreciation and amortization expense. EBITDA Margin is EBITDA as a percentage of total revenues.
Carvana uses EBITDA to measure the operating performance of its business and EBITDA Margin to measure its operating performance relative to its total revenues. Carvana believes that EBITDA and EBITDA Margin are useful measures to it and its investors because they exclude certain financial and capital structure items that Carvana does not believe directly reflect its core operations and may not be indicative of its recurring operations, in part because they may vary widely across time and within Carvana's industry independent of the performance of Carvana's core operations. Carvana believes that excluding these items enables it to more effectively evaluate Carvana's performance period over period and relative to its competitors. EBITDA and EBITDA Margin may not be comparable to similarly titled measures provided by other companies due to potential differences in methods of calculations.
EBITDA and EBITDA Margin have limitations as an analytical tool, and you should not consider them in isolation, or as a substitute for analysis of Carvana's results as reported under GAAP. Some of these limitations are:
Because of these limitations, these non-GAAP measures should not be considered as a replacement for net loss or as measures of discretionary cash available to Carvana to service its indebtedness or invest in its business. Carvana compensates for these limitations by relying primarily on GAAP results and using non-GAAP measures only for supplemental purposes.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180423006454/en/