FORT LAUDERDALE, FL, May 27, 2021 (GLOBE NEWSWIRE) — LMP Automotive Holdings, Inc. (NASDAQ: LMPX) (“LMP” or the “Company”), an e-commerce and facilities-based automotive retailer in the United States, today provided a corporate update and announced a delay of its first quarter 2021 financial results quarterly conference call for the period ended March 31, 2021.
Delay of its First Quarter 2021 Financial Results
As stated on our Form 12b-25 filed with the Securities and Exchange Commission on May 18, 2021, there was a significant change in our results of operations when compared to the results from the corresponding period in the prior year, primarily as a result of previously announced acquisitions that closed during the quarter ended March 31, 2021. The following is a preliminary representation of these changes for the three months ended March 31, 2021:
- Revenue increased by $27.6 million to $33.0 million when compared the same period a year ago;
- Overall gross profit increased by approximately $5.5 million to $6.0 million when compared the same period a year ago; and
- Cash (including restricted cash) increased by approximately $1.4 million to $19.4 million when compared the same period a year ago.
Management’s compilation, dissemination and review of information required to be presented in the Form 10-Q for the fiscal quarter ended March 31, 2021 has imposed time constraints that have rendered timely filing of the Form 10-Q impracticable without undue hardship and expense. Specifically, this relates primarily to our evaluation and accounting for the acquisitions consummated during March 2021.
The Company is evaluating the accounting impact of these acquisitions and the effects on its controls over financial reporting.
We expect to file such Form 10-Q shortly and will provide a date in advance for our first quarter 2021 financial results quarterly conference call.
Second Quarter 2021 Financial Update
We are witnessing strong percentage increases in April and May gross profits. Based on quarter-to-date results, we expect:
- Revenue to be approximately $128 million;
- Overall gross profit to be approximately $23 million (or 18%); and
- Cash (including restricted cash) and shareholder equity to be our highest on record.
We are pleased with our results and are optimistic about our ability to continue to grow the Company as we move forward. Our pipeline of prospective dealership acquisitions remains active and we believe we are on track to achieve our goal of adding an additional 80 to 100 dealerships to our network by the end of next year.”
“We are clearly seeing the benefits and the power and potential of the various investments we have been making to the model,” said Sam Tawfik, Chief Executive Officer. “It has been a very difficult year with the pandemic and social unrest in our country, but our team has stayed focused on our goals.”
Richard Aldahan, Chief Operating Officer, stated, “The investments we are making are foundational and will continue to allow us to increase productivity and leverage our cost structure while significantly improving the customer experience. We continue to prioritize investments in the areas of associate recruiting, training and retention, and management.”
“Our partners and their over 450 associates, who come to work every day to make a difference, have done an outstanding job in very difficult and uncertain times and have demonstrated their commitment to achieving our goal,” Mr. Aldahan concluded.
Corporate Updates & Developments:
Thus far in 2021, we have completed acquisitions which expanded the Company’s network to a total of 14 locations covering the Southeast, Mid-Atlantic and Northeast regions. Our representative brands include Subaru, KIA, Chevrolet, GMC, Cadillac, and Buick.
In addition, we:
- Engaged KPMG as our independent auditor for fiscal year 2021 and have since strengthened our accounting team;
- Closed a $20 million private placement transaction;
- Released our next generation, integrated e-commerce solution and since its launch, organic e-commerce was the highest in the Company’s history at over 67,000 new and 5,000 active users during the month of May; and
- Announced a definitive acquisition agreement for the purchase of an 85% interest in two Chrysler Jeep Dodge Ram dealerships in New York, generating approximately $270 million in annualized revenue.
Future Internal Near-Term Goals:
Enter New Geographical Markets
- At the forefront of our strategy is our unique and profitable industry consolidation effort by means of our dealer partnership structure in which we are seeing extraordinary interest from both small and large dealer groups that want to diversify as well as “stay in the game” and operate and grow the business. This strategy remains LMP’s primary focus given the strong returns on invested capital and the significant addition to income and earnings per share it provides. We believe this is the swiftest way to increase earnings and shareholder value.
- Add an additional 80 to 100 dealerships to our network by the end of next year.
- Profitably consolidate and modernize the industry through our strategy, technology, physical logistics network, and growing our experienced teams and selection of owned inventories to provide customers with a seamless experience both online and in person.
Drive Revenue and Profit Growth in Existing Markets
- Launch our planned “Order Online and Get It Delivered” advertising campaign.
- Improve brand awareness.
- Expand our pre-owned, e-commerce sales utilizing our 77 acres of recently acquired real estate, logistics footprint and physical store network.
- Improve all Company-wide operating metrics as we achieve economies of scale.
Innovate and Expand our E-Commerce Technology Platform
- Continue building out our integrated online sales platform to provide an improved experience for consumers and a seamless auto shopping and buying experience. Some of the features we expect to add include:
- Estimate trade-in, get a certified offer with same-day payment;
- Real-time, personalized financing;
- Choose a vehicle and finance then upload important paperwork;
- Choose vehicle protection offerings then upload important paperwork;
- Set up a time for home delivery or in-store pickup; and
- Make payments and manage your account online.
ABOUT LMP AUTOMOTIVE HOLDINGS, INC.
LMP Automotive Holdings, Inc. (NASDAQ: LMPX) is a growth company with a long-term plan to profitably consolidate and partner with automotive dealership groups in the United States. We offer a wide array of products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, finance and insurance products and automotive repair and maintenance.
Our proprietary e-commerce technology and strategy are designed to disrupt the industry by leveraging our experienced teams, growing selection of owned inventories and physical logistics network. We seek to provide customers with a seamless experience both online and in person. Our physical logistics network enables us to provide convenient free delivery points for customers and provide services throughout the entire ownership life cycle. We use digital technologies to lower our customer acquisition costs, achieve operational efficiencies and generate additional revenues. Our unique growth model generates significant cash flows, which funds our innovation and expansion into new geographical markets, along with strategically building out dealership networks, creating personal transportation solutions that consumers desire.
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Such statements include, but are not limited to, any statements relating to our expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar matters that are not historical facts. 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 meanings. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock value. Factors that could cause actual results to differ materially from those currently anticipated include: our dependence upon external sources for the financing of our operations; our ability to effectively executive our business plan; our ability to maintain and grow our reputation and to achieve and maintain the market acceptance of our services and platform; our ability to manage the growth of our operations over time; our ability to maintain adequate protection of our intellectual property and to avoid violation of the intellectual property rights of others; our ability to maintain relationships with existing customers and automobile suppliers, and develop relationships; and our ability to compete and succeed in a highly competitive and evolving industry; as well as other risks described in our SEC filings. 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. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.