Fly-E Group, Inc. Announces Fiscal Year 2024 Financial Results
PR Newswire
NEW YORK, July 1, 2024
NEW YORK, July 1, 2024 /PRNewswire/ -- Fly-E Group, Inc. (Nasdaq: FLYE) ("Fly-E" or the "Company"), an electric vehicle company engaged in designing, installing and selling smart electric motorcycles, electric bikes, electric scooters, and related accessories, today announced its financial results for the fiscal year ended March 31, 2024.
Mr. Zhou (Andy) Ou, Chairman and Chief Executive Officer of Fly-E, remarked, "We are thrilled to present our robust inaugural financial results for fiscal year 2024 following our IPO in June 2024. Our net revenues and gross profit surged by an impressive 47.9% and 58.1%, respectively, for fiscal year 2024. This growth has been accompanied by an improvement in our gross profit margin from 38.1% to 40.7%. Despite the challenges posed by inflation, which has led to higher labor and raw material costs that have impacted profitability and customer demand, our income from operations and net income still rose significantly by 41.0% and 37.5%, respectively. Our EBITDA also saw a significant increase of 43.2%, reaching $3.5 million. All these impressive numbers demonstrate the success of our adept management team in their oversight of our pricing strategies and sales enhancement, supplier diversification, logistics optimization, and continuous upgrading of our product portfolio. These efforts collectively reinforce our brand and position in the market. As a fast-growing EV company with eco-friendliness at our core, we are focused on expanding into new territories through online sales and diversifying our product offerings to meet ever-evolving customer demands and travel scenarios. We will continue to invest in our intelligent management service mobile software, the Fly E-Bike app, to further enhance the customer experience. Looking ahead, we are committed to ongoing innovation and expanding our sales network to create greater long-term growth for our company."
Fiscal Year 2024 Financial Highlights
-- Net revenues were $32.2 million in fiscal year 2024, an increase of 47.9%
from $21.8 million in fiscal year 2023.
-- Gross profit was $13.1 million in fiscal year 2024, an increase of 58.1%
from $8.3 million in fiscal year 2023.
-- Gross margin was 40.7% in fiscal year 2024, increased from 38.1% in
fiscal year 2023.
-- Income from operations was $3.3 million in fiscal year 2024, an increase
of 41.0% from $2.3 million in fiscal year 2023.
-- Net income was $1.9 million in fiscal year 2024, an increase of 37.5%
from $1.4 million in fiscal year 2023.
-- Basic and diluted earnings per share were $0.09 in fiscal year 2024,
increased from $0.06 in fiscal year 2023.
-- EBITDA was $3.5 million in fiscal year 2024, an increase of 43.2% from
$2.4 million in fiscal year 2023.
Fiscal Year 2024 Financial Results
Net Revenues
Net revenues were $32.2 million in fiscal year 2024, an increase of 47.9% from $21.8 million in fiscal year 2023. The increase was driven primarily by the increase of the average sale price of EVs by 2.0%, from $941 in fiscal year 2023 to $960 in fiscal year 2024, and the increase in sales volume of EVs by 7,389 units, from 11,263 units in fiscal year 2023 to 18,652 units in fiscal year 2024.
Retail sales revenue was $26.4 million in fiscal year 2024, an increase of 40.0% from $18.8 million in fiscal year 2023. Wholesale revenue was $5.8 million in fiscal year 2024, an increase of 98.5% from $2.9 million in fiscal year 2023.
Cost of Revenues
Cost of revenues was $19.1 million in fiscal year 2024, an increase of 41.6% from $13.5 million in fiscal year 2023. The increase in cost of revenues was primarily attributable to the increase in sales volume mentioned above and increase in logistics costs as the Company sourced and imported more EV parts and accessories outside the United States during the year ended March 31, 2024.
Gross Profit
Gross profit was $13.1 million in fiscal year 2024, an increase of 58.1% from $8.3 million in fiscal year 2023. Gross margin was 40.7% in fiscal year 2024, increased from 38.1% in fiscal year 2023. The increase in gross profit and gross margin was a result of higher average per unit selling price, increasing from $941 in fiscal year 2023 to $960 in fiscal year 2024. These improvements were driven by product upgrades, enhanced sales channels, and an improved brand image in the market.
Total Operating Expenses
Total operating expenses were $9.8 million in fiscal year 2024, an increase of 64.7% compared to $6.0 million in fiscal year 2023. The increase was attributable to the increase in the payroll expenses, rent expenses, meals and entertainment expenses, professional fees, and development expenses as the Company expanded its business.
-- Selling expenses were $5.9 million in fiscal year 2024, compared to $3.7
million in fiscal year 2023. Selling expenses primarily consist of
payroll expenses, rent and utilities expenses of retail stores and other
sales and marketing expenses. Total payroll expenses were $1.6 million in
fiscal year 2024, compared to $1.4 million in fiscal year 2023. Rent
expenses were $2.4 million in fiscal year 2024, compared to $1.7 million
in fiscal year 2023. Because delivery drivers are the Company's main
retail customers, customer referral is the most effective way to market
promotion. August through November is the low-season comparing to other
months, as such, the Company focuses on client referrals during this
period to boost sales. As a result, our marketing referral expense
increased to $1.1 million in fiscal year 2024, compared to $15,756 in
fiscal year 2023. Utilities expenses were $0.16 million in fiscal year
2024, compared to $0.13 million in fiscal year 2023. The increase in
these expenses was primarily due to the increase in the number of new
stores and new employees hired for these new stores in fiscal year 2024.
-- General and administrative expenses were $3.9 million in fiscal year
2024, compared to $2.3 million in fiscal year 2023. Meals and
entertainment expenses increased to $0.4 million in fiscal year 2024,
compared to $0.3 million in fiscal year 2023, primarily due to increased
meal expenses for employees who worked overtime. Professional fees
increased to $1.0 million in fiscal year 2024, compared to $0.7 million
in fiscal year 2023, primarily attributable to the increase in audit fee,
consulting fee, and legal expenses associated with the Company's initial
public offering. Payroll expenses increased to $1.1 million in fiscal
year 2024 from $0.5 million in fiscal year 2023 primarily due to
additional employees hired in operation and accounting departments. Rent
expenses increased to $0.2 million in fiscal year 2024, compared to $0.1
million in fiscal year 2023 as a result of office space expansion in
fiscal year 2024.
Net Income
Net income was $1.9 million in fiscal year 2024, an increase of 37.5% from $1.4 million in fiscal year 2023, mainly attributable to the reasons discussed above.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were $0.09 in fiscal year 2024, increased from $0.06 in fiscal year 2023.
EBITDA
EBITDA was $3.5 million in fiscal year 2024, an increase of 43.2% from $2.4 million in fiscal year 2023.
Financial Condition
As of March 31, 2024, the Company had cash of $1.4 million, increased from $0.4 million as of March 31, 2023.
Net cash provided by operating activities was $4.3 million in fiscal year 2024, compared to $1.8 million in fiscal year 2023.
Net cash used in investing activities was $3.2 million in fiscal year 2024, compared to $0.4 million in fiscal year 2023.
Net cash used in financing activities was $0.05 million in fiscal year 2024, compared to $1.4 million in fiscal year 2023.
Recent Development
On June 7, 2024, the Company completed its initial public offering (the "Offering") of 2,250,000 shares of common stock, at a price of $4.00 per share. On June 25, 2024, the underwriter of the Offering exercised its over-allotment option in full to purchase an additional 337,500 shares of the Company's common stock at the public offering price of $4.00 per share. After giving effect to the full exercise of the over-allotment option, the Company sold an aggregate 2,587,500 shares of its common stock for aggregate gross proceeds of $10.35 million, before deducting underwriter discounts, commissions and other related expenses. The Company's shares of common stock began trading on the Nasdaq Capital Market under the symbol "FLYE" on June 6, 2024.
About Fly-E Group, Inc.
Fly-E Group, Inc. is an electric vehicle company that is principally engaged in designing, installing and selling smart electric motorcycles, electric bikes, electric scooters and related accessories under the brand "Fly E-Bike." The Company's commitment is to encourage people to incorporate eco-friendly transportation into their active lifestyles, ultimately contributing towards building a more environmentally friendly future. For more information, please visit the Company's website: https://investors.flyebike.com.
Non-GAAP Financial Measures
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