LMP Automotive Holdings, Inc. (NASDAQ: LMPX) (the “Company” or
“LMP”), an e-commerce and facilities-based platform for consumers
who desire to buy, sell, subscribe to or finance pre-owned and new
automobiles, today announced it has entered into a commitment
letter with Truist Bank for a $192 Million financing (subject to
terms and conditions set forth in the commitment letter) for the
Company’s Stage 1 southeast acquisitions.
Sam Tawfik, LMP’s Chief Executive Officer, stated, “We intend to
use the proceeds to fund the consummation of our stage 1
acquisitions which consist of 13 dealerships, including 12 new
vehicle franchises, and 6 parcels of dealership real estate
totaling approximately 67 acres in the Southeast. A portion of the
proceeds will be utilized for new and used vehicle floorplan plus
working capital. We expect the stage 1 closing to occur in January
2021, subject to customary closing conditions and manufacturer
approval.”
Evan Bernstein, LMP’s Chief Financial Officer, stated, “The
closings of the acquisitions of this initial stage of dealerships
is expected to be immediately accretive to income, adding
approximately 2,300 new and used vehicles valued at roughly
$58,000,000.” Mr. Bernstein added, “Our 2021 outlook, inclusive of
synergies and accretions for this stage 1 group, is expected to be
in the range of $510,000,000 to $540,000,000 in revenue,
$22,000,000 to $24,000,000 in adjusted EBITDA, or $2.20 to $2.40
per share, based on roughly 10,000,000 shares outstanding. We
expect 2022 full year operations attributable to this stage 1 group
to produce approximately $590,000,000 in revenue and $29,000,000 in
adjusted EBITDA, or $2.90 per share, based on roughly 10,000,000
shares outstanding.”
Richard Aldahan, LMP’s Chief Operating Officer, added, “We are
thankful to both LMP and our counterparty employees and
professionals, who have worked tirelessly over the last several
months on these transactions. The talent in our combined
organizations and the resilience of our business model will make us
a stronger and a more diversified company. I am pleased to welcome
our new colleagues and look forward to working and growing together
as we continue to modernize the shopping experience for our
consumers as we expand the roll-out of our hybrid e-commerce home
delivery, site-to-store, and ship-from-store delivery services.
These partnerships significantly expand our e-commerce platform,
sales, subscription, and fulfillment footprint in some of the
fastest growing regions in the market. Importantly, we will also
have more cost-efficient e-commerce fulfillment, reconditioning,
and service capacity. We will also increase our vehicle storage
capacity by approximately 6,000 units on 67 acres. As we begin to
integrate our organizations and increase our inventories shortly
after the close, the roll-out of the Company’s hybrid e-commerce
home delivery, site-to-store, and ship-from-store delivery platform
will magnify our disruptive business model. Our ability to
cost-effectively expand our free delivery radius and cut out
multiple legs of costly transportation, logistics and
reconditioning costs, will be an important factor in increasing
margins and enhancing profitability as we build on our historical
success.”
“I also would like to commend our new partners on their organic
growth and superior performance during 2020. Their combined income
grew over 45% on an annualized basis versus 2019 which is an
impressive achievement. This performance outpaced our public peers,
delivering an average of $2,644 gross profit per used unit sold and
$3,029 gross profit per new unit sold. I would also like to add
that LMP and the seller of the single point Southeast Toyota
Franchise Dealership that the Company had announced a definitive
agreement to acquire on July 17, 2020, have jointly consented to
terminate our agreement,” Mr. Aldahan concluded.
ABOUT LMP AUTOMOTIVE HOLDINGS, INC. –
“BUY, SUBSCRIBE, SELL AND REPEAT.”LMP Automotive Holdings,
Inc. (NASDAQ: LMPX) describes its business model as “Buy,
Subscribe, Sell and Repeat.” This means that we “Buy” pre-owned
automobiles primarily through auctions or directly from other
automobile dealers, and new automobiles from manufacturers and
manufacturer distributors. We “Subscribe” the automobiles to our
customers by allowing them to enter into our subscription plan for
automobiles in which customers have use of an automobile for a
minimum of thirty (30) days. LMP’s vehicle subscription membership
includes monthly swaps and offers the flexibility to return the
vehicle without penalty, upgrade your vehicle to a more premium
model or downgrade for a lesser cost model when you like. We “Sell”
our inventory, including automobiles previously included in our
subscription programs, to customers as well, and then we “Repeat”
the whole process.
Investor Relations:LMP Automotive Holdings,
Inc.500 East Broward Boulevard, Suite 1900Fort Lauderdale, FL
33394investors@lmpah.com
For more information visit: https://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.
SOURCE: LMP Automotive Holdings,
Inc.
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