KISSIMMEE, Fla. - ECD Auto Design (NASDAQ:ECDA), known for its custom luxury builds of classic Land Rovers and Jaguars, has announced the acquisition of assets from Brand New Muscle Car for restricted stock valued at $1.5 million. The transaction marks ECD's first acquisition since becoming a publicly traded entity.
Brand New Muscle Car, based in Broken Arrow, OK, specializes in the restoration of classic American muscle cars using new parts, tailored to customer specifications. With this acquisition, ECD will expand its manufacturing capabilities to include bespoke classic Ford (NYSE:F) Mustangs and other American muscle cars at its Orlando, Florida facility.
Scott Wallace, CEO of ECD, expressed enthusiasm about the acquisition, highlighting the strategic move towards meeting the demands of the ultra-high net worth population for unique, one-of-a-kind vehicles. He emphasized the company's vision to diversify into the high-end collectible car market, which is valued at over $15 billion.
ECD Auto Design, trading under ECDA on the Nasdaq, is renowned for its meticulous restoration process, where each vehicle is hand-built from scratch in approximately 2,200 hours by master-certified Automotive Service Excellence (ASE) craftsmen. The company's headquarters in Kissimmee, Florida, employs 90 craftsmen and technicians with a combined 61 ASE and five master-level certifications.
The acquisition is expected to enable ECD to leverage its existing manufacturing footprint and client design process to offer a wider range of custom classic vehicles. This information is based on a press release statement from ECD Auto Design.
InvestingPro Insights
As ECD Auto Design (NASDAQ:ECDA) gears up to integrate Brand New Muscle Car's assets into its expansive portfolio, investors are closely monitoring the company's financial health and market performance. The latest data from InvestingPro provides a snapshot of ECDA's fiscal standing and market activity, which could be indicative of the company's potential to capitalize on the high-end collectible car market.
ECDA's Price to Earnings (P/E) ratio, sitting at 20.03 for the last twelve months as of Q3 2023, suggests a valuation that investors might consider when weighing the company's earnings relative to its share price. Additionally, the company's Price to Book ratio of -13.47 in the same period could raise questions about market valuation versus the company's net asset value. On a brighter note, ECDA's revenue growth is impressive, with a quarterly increase of 67.57% in Q3 2023, pointing to a robust expansion in sales.
The company's gross profit margin of 33.84% demonstrates its ability to retain a significant portion of sales revenue after accounting for the cost of goods sold, which is crucial for sustaining operations and funding growth initiatives. However, the recent market performance shows some volatility, with a 1-year price total return of -91.37%, reflecting the challenges and investor sentiment in the current economic landscape.
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With an upcoming earnings date set for June 25, 2024, stakeholders are keeping a watchful eye on ECDA's performance as it diversifies its offerings to meet the demands of an affluent clientele. The integration of Brand New Muscle Car's expertise with ECD's renowned restoration process could position the company favorably in the luxury collectible market.
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