FORT LAUDERDALE, Fla., July 15, 2022 (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 financial update and announced it has entered into a $15.8 million all cash agreement (the “Agreement”) to sell its Chrysler Jeep Dodge Ram Dealership in White Plains, New York.
- Expected closing is October of this year, subject to the terms of the Agreement.
Second Quarter 2022 Highlights
Year to date, we are witnessing robust gross profits and revenue growth quarter-over-quarter. Revenue, Gross Profits and cash for the quarter ending June 30, 2022 were at their highest levels in the Company’s history.
The following are preliminary estimates of our overall dealership portfolio performance for the quarter ending June 30, 2022:
Revenue of approximately $164 million, a 10% increase compared to the first quarter of this year (an estimated $149 million).
Gross Profit of approximately $32 million, a 10% increase compared to the first quarter of this year (an estimated $29 million).
Cash of approximately $36 million, a 20% increase compared to the first quarter of this year (approximately $30 million).
We reduced our existing term loan debt by approximately $7.5 million, or 8.8%, in the second quarter of this year, resulting in an outstanding loan balance of approximately $77.5 million.
We believe that our remaining real estate portfolio, which was appraised at approximately $50 million, plus our dealerships, including the Chrysler Jeep Dodge Ram dealership in White Plains, New York that we have contracted to sell, can be worth approximately $104 million based on a modest 0.16 multiple of quarterly annualized revenue.
We believe that our stock price does not reflect net asset value of our company and continue to seek strategic options to maximize shareholder value and we have engaged BofA Securities to assist us in the process.
Sam Tawfik, the Company’s Chairman and Chief Executive Officer commented, "2022 is shaping up to be a strong year for LMP, with the firm generating record revenue and gross profits, as well as numerous other records in each of our lines of business, all while maintaining credit discipline and strengthening our balance sheet on a quarterly basis. With our current cash and equity position, which continues to build as we generate profits and modest leverage, we are committed to responsibly managing our business and prudently creating value for our shareholders."
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.
Investor Relations:
LMP Automotive Holdings, Inc.
500 East Broward Boulevard, Suite 1900
Fort Lauderdale, FL 33394
investors@lmpah.com
For more information visit:
lmpmotors.com
FORWARD-LOOKING STATEMENTS:
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.
