LMP Automotive Holdings, Inc. Provides Financial Update and Signs a $15.8 Million All Cash Agreement to Sell its Chrysler Jeep Dodge Ram Dealership in New York
16 July 2022 - 8:58AM
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.
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