Fly-E Group, Inc. Announces First Quarter of Fiscal Year 2025 Financial Results
PR Newswire
NEW YORK, Aug. 19, 2024
NEW YORK, Aug. 19, 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 unaudited financial results for the first quarter of fiscal year 2025 ended June 30, 2024.
First Quarter of Fiscal Year 2025 Financial Summary
-- Net revenues were $7.9 million in the first quarter of fiscal year 2025,
an increase of 0.4% from $7.8 million in the same period last year.
-- Gross profit was $3.1 million in the first quarter of fiscal year 2025,
an increase of 13.8%, from $2.7 million in the same period last year.
-- Gross margin was 39.4% in the first quarter of fiscal year 2025,
increased from 34.7% in the same period last year.
-- Loss from operations was $45,499 in the first quarter of fiscal year
2025, compared to income from operations of $767,544 in the same period
last year.
-- Net loss was $0.2 million in the first quarter of fiscal year 2025,
compared to net income of $0.4 million in the same period last year.
-- Basic and diluted losses per share were $0.01 in the first quarter of
fiscal year 2025, compared to basic and diluted earnings per share of
$0.02 in the same period last year.
-- EBITDA as $57,021 in the first quarter of fiscal year 2025, compared to
EBITDA of $820,134 in the same period last year.
Mr. Zhou (Andy) Ou, Chairman and Chief Executive Officer of Fly-E, remarked, "Despite the inflationary pressure and intense competition, we have managed to sustain steady expansion with a gross profit increase of 13.8%. Our uptick in financial performance reflects the strategic efforts we have undertaken to expand our market presence and enhance our product offerings. This growth has been driven by our commitment to innovation and customer satisfaction, as evidenced by the increase in our average sales price per EV. Also contributing to our gross profit increase is a decrease in our cost of revenue. We achieved this through continued cooperation with our suppliers which resulted in a more favorable price for the company when purchasing batteries. In addition, we witnessed significant increases in selling and general administrative expenses, primarily driven by the expansion of our retail stores and the strategic investments associated with our initial public offering, which increases were necessary to support our continued growth and the scaling of our operations, positioning us for future success. Looking forward, we are optimistic about our growth prospects and are committed to executing our business plan to achieve long-term success."
First Quarter of Fiscal Year 2025 Financial Results
Net Revenues
Net revenues were $7.9 million in the first quarter of fiscal year 2025, an increase of 0.4%, from $7.8 million in the same period last year. The increase in net revenues was driven primarily by the increase of the average sale price of EVs by $46 or 4.6%, from $1,007 in the first quarter of fiscal year 2024 to $1,053 in the first quarter of fiscal year 2025.
Retail sales revenue was $6.9 million in the first quarter of fiscal year 2025, an increase of 11.4%, from $6.2 million in the same period last year. Wholesale revenue was $1.0 million in the first quarter of fiscal year 2025, compared to $1.7 million in the same period last year. The increase in retail sales revenue is mainly due to the addition of seven new retail stores from June 2023 to June 2024. The decrease in wholesales revenue was driven primarily by the decrease in purchase from the top two customers who closed their stores.
Cost of Revenues
Cost of revenues was $4.8 million in the first quarter of fiscal year 2025, a decrease of 6.8%, from $5.1 million in the same period last year. The decrease in cost of revenues was primarily attributable to more favorable pricing the Company obtained from its suppliers, especially for the price of batteries. The unit cost for battery decreased by 56%, from $157.0 in the first quarter of fiscal year 2024, to $69.0 in the first quarter of fiscal year 2025.
Gross Profit
Gross profit was $3.1 million in the first quarter of fiscal year 2025, an increase of 13.8%, from $2.7 million in the same period last year. Gross margin was 39.4% in the first quarter of fiscal year 2025, increased from 34.7% in the same period last year.
Total Operating Expenses
Total operating expenses were $3.1 million in the first quarter of fiscal year 2025, an increase of 60.9%, from $2.0 million in the same period last year. The increase in operating expenses was attributable to the increase in payroll expenses, rent expenses, meals and entertainment expenses, professional fees, and development expenses as the Company expanded business.
-- Selling expenses were $1.6 million in the first quarter of fiscal year
2025, compared to $1.1 million in the same period last year. Selling
expenses primarily consist of payroll expenses, rent, utilities expenses,
and advertising expenses of retail stores. Total payroll expenses were
$0.6 million in the first quarter of fiscal year 2025, compared to $0.4
million in the same period last year. Rent expenses were $0.7 million in
the first quarter of fiscal year 2025, compared to $0.5 million in the
same period last year. Utilities expenses were $45,825 in the first
quarter of fiscal year 2025, compared to $28,383 in the same period last
year. Advertising expenses were $68,519 in the first quarter of fiscal
year 2025, compared to $11,727 in the same period last year. 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 the first quarter
of fiscal year 2025.
-- General and administrative expenses were $1.5 million in the first
quarter of fiscal year 2025, compared to $0.9 million in the same period
last year. Meals and entertainment expenses increased to $139,561 in the
first quarter of fiscal year 2025, compared to $116,577 in the same
period last year, primarily due to increased meal expenses for employees
who worked overtime. Professional fees increased to $0.4 million in the
first quarter of fiscal year 2025, compared to $0.2 million in the same
period last year, primarily attributable to the increase in audit fee,
consulting fee, and IR expenses associated with the Company initial
public offering. Payroll expenses increased to $0.4 million in the first
quarter of fiscal year 2025, from $0.2 million in the same period las
year primarily due to additional employees hired in operation and
accounting departments. Rent expenses increased to $0.1 million in the
first quarter of fiscal year 2025, compared to $0.1 million for the same
quarter of prior year as a result of office space expansion in the first
quarter of fiscal year 2025. Development fee increased to $0.1 million in
the first quarter of fiscal year 2025, compared to $nil for the prior
quarterly as a result of maintenance for Fly E-Bike app during the three
months ended June 30, 2024.
Net Income (Loss)
Net loss was $0.2 million in the first quarter of fiscal year 2025, compared to net income of $0.4 million in the same period last year, mainly attributable to the reasons discussed above.
Basic and Diluted Earnings (Losses) per Share
Basic and diluted losses per share were $0.01 in the first quarter of fiscal year 2025, compared to basic and diluted earnings per share of $0.02 in the same period last year.
EBITDA
EBITDA was $57,021 in the first quarter of fiscal year 2025, compared to EBITDA of $820,134 in the same period last year.
Financial Condition
As of June 30, 2024, the Company had cash of $4.5 million, increased from $1.4 million as of June 30, 2023.
Net cash used in operating activities was $4.5 million in the first quarter of fiscal year 2025, compared to net cash provided by operating activities of $0.8 million in the same period last year.
Net cash used in investing activities was $1.1 million in the first quarter of fiscal year 2025, compared to $0.4 million in the same period last year.
Net cash provided by financing activities was $8.7 million in the first quarter of fiscal year 2025, compared to net cash used in financing activities of $0.1 million in the same period last year.
Recent Development
The Company launched a new rental program to meet the increasing market demand for safe, UL-certified e-bikes in compliance with New York State regulations. The rental service is now available in New York City in select Fly E-Bike stores, offering users with a flexible and affordable e-bike rental option featuring the Fly-E Fly-11 Pro model. The Company is currently developing the GO FLY app, a mobile application designed for its rental services. As part of FLY-E's growth strategy, the Company plans to expand the rental service to Miami, Toronto, and Los Angeles shortly.
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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