FORT LAUDERDALE, FL, May 27, 2021 (GLOBE NEWSWIRE) – LMP Automotive Holdings, Inc. (NASDAQ: LMPX) (“LMP” or the “Company”), an automotive retailer based on e-commerce and facilities in the United States United States, today provided a company update and announced a postponement of its quarterly first quarter 2021 financial results conference call for the period ended March 31, 2021.
Delay in its financial results for the first quarter of 2021
As disclosed on our Form 12b-25 filed with the Securities and Exchange Commission on May 18, 2021, there has been a material change in our results of operations compared to the results for the corresponding period of the previous year, mainly in Due to previously announced acquisitions that closed during the quarter ended March 31, 2021. The following is a preliminary representation of these changes for the quarter ended March 31, 2021:
- Revenue increased $ 27.6 million to $ 33.0 million compared to the same period a year ago;
- Overall gross profit increased by approximately $ 5.5 million to $ 6.0 million compared to the same period a year ago; and
- Cash (including restricted cash) increased by approximately $ 1.4 million to $ 19.4 million compared to the same period a year ago.
The compilation, release and management review of the information to be presented in Form 10-Q for the fiscal quarter ended March 31, 2021 imposed time constraints which made the timely filing of Form 10- Q impracticable without difficulty or excessive expense. More specifically, this mainly concerns our assessment and accounting of acquisitions made in March 2021.
The Company is evaluating the accounting impact of these acquisitions and the effects on its controls over financial reporting.
We plan to file this Form 10-Q shortly and will provide an advance date for our quarterly first quarter 2021 financial results conference call.
Second quarter 2021 Financial update
We are seeing big percentage increases in gross profits for April and May. Based on quarterly results, we expect:
- Revenues of approximately $ 128 million;
- Overall gross profit of approximately $ 23 million (or 18%); and
- Cash (including restricted cash) and equity are the highest on record.
We are satisfied with our results and optimistic about our ability to continue to grow the Company as we move forward. Our pipeline of potential dealer acquisitions remains active and we believe we are on track to meet our goal of adding 80 to 100 additional dealers to our network by the end of next year.
“We clearly see the benefits, power and potential of the various investments we have made in the model,” said Sam Tawfik, CEO. “It has been a very difficult year with the pandemic and social unrest in our country, but our team has remained focused on our goals. “
Richard Aldahan, COO, said: “The investments we make are fundamental and will continue to allow us to increase our productivity and leverage our cost structure while significantly improving the customer experience. We continue to prioritize investments in the areas of recruitment, associate training and retention, and management. “
“Our partners and their more than 450 associates, who come to work every day to make a difference, have done a remarkable job in very difficult and uncertain times and have demonstrated their commitment to achieving our goal,” concluded Mr. Aldahan.
Business Updates & Developments:
So far in 2021, we have completed acquisitions that have 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:
- We hired KPMG as an independent auditor for fiscal year 2021 and have since strengthened our accounting team;
- Close of a $ 20 million private placement transaction;
- Launched our next-generation integrated e-commerce solution and since launch, organic e-commerce was the highest in company history with over 67,000 new users and 5,000 active users during the month of May ; and
- Announcement of a definitive acquisition agreement to purchase an 85% stake in two Chrysler Jeep Dodge Ram dealerships in New York City, generating approximately $ 270 million in annualized revenue.
Future Internal Short term Goals:
Enter new geographic markets
- At the forefront of our strategy is our unique and profitable effort to consolidate the industry through our dealer partnership structure in which we see tremendous interest from small and large dealer groups who wish to diversify in this way. than “stay in the game” and operate. and grow the business. This strategy remains the primary focus of LMP given the strong returns on invested capital and the significant addition to income and earnings per share it provides. We believe this is the fastest way to increase profits and shareholder value.
- Add 80 to 100 additional dealers to our network by the end of next year.
- Profitably consolidate and modernize the industry through our strategy, technology, physical logistics network and the development of our experienced teams and selection of owned inventory to provide clients with a seamless experience both online and in person.
Generate income and Profit Growth in existing markets
- Launch our planned “Order online and have it delivered” advertising campaign.
- Improve brand awareness.
- Grow our pre-owned e-commerce sales using our 77 acres of recently acquired real estate, our logistics footprint and our network of physical stores.
- Improve all company-wide operating metrics as we achieve economies of scale.
Innovate and expand our E–VStrade Technology platform
- Continue to develop our integrated online sales platform to provide an enhanced consumer experience and a seamless automotive buying and shopping experience. Some of the features we plan to add include:
- Estimate the exchange, get a certified offer with same-day payment;
- Personalized financing in real time;
- Choose a vehicle and finance it, then upload the important documents;
- Choose the vehicle protection offers, then download the important documents;
- Set 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 growing company with a long-term plan to consolidate and profitably partner with auto dealer groups in the United States. We offer a wide range of products and services spanning the entire lifecycle of vehicle ownership, including new and used vehicles, financing and insurance products, and repair and maintenance. automobile.
Our proprietary e-commerce technology and strategy is designed to disrupt the industry by leveraging our experienced teams, a growing selection of owned inventory and a 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 free and convenient delivery points to customers and to provide services throughout the property lifecycle. We use digital technologies to reduce our customer acquisition costs, achieve operational efficiency and generate additional revenue. Our unique growth model generates significant cash flow, which funds our innovation and expansion into new geographic markets, as well as the strategic construction of dealer networks, creating the personal transportation solutions that consumers want.
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, without limitation, any statement relating to our expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar matters which are not historical facts. These statements may be preceded, followed or include the words “aim”, “anticipate”, “believe”, “estimate”, “expect”, “foresee”, “intend”, “probable”, ” perspective “,” “plan”, “potential”, “project”, “projection”, “research”, “can”, “could”, “can”, “should”, “would”, will “, negative aspects of these and other words and terms with similar meanings. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could adversely affect our business, results of operations, financial condition and the value of our shares. Factors that could cause actual results to differ materially from those currently expected include: our reliance on external sources to finance our operations; our ability to effectively execute our business plan; our ability to maintain and develop our reputation and to achieve and maintain 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 infringement of the intellectual property rights of others; our ability to maintain and develop relationships with existing customers and automotive suppliers; and our ability to compete and succeed in a highly competitive and constantly changing industry; as well as other risks described in our filings with the SEC. There can be 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 commitment to publicly release any update or revision to any forward-looking statement contained herein to reflect any change in our expectations or any change in the events, conditions or circumstances upon which such statement is based, unless required by law.