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
announces it will delay its 2021 financial results.
Q1 2022 Financial Update
Year to date, we are witnessing robust gross profits and revenue
growth month-over-month. Revenue in the month of March was at its
highest levels as compared to monthly revenue in the trailing 9
months.
Balance Sheet Update
LMP utilized approximately $16 million in cash from its
balance sheet in the fourth quarter of 2021 for the
following:
We completed the acquisition of our contracted White Plains, New
York Chrysler Dodge Jeep Ram in the early fourth quarter of 2021
using approximately $5 million in cash from the
company’s balance sheet, 55,000 shares of common stock and $1.3
million in cash from our existing credit facility.
We reduced our existing term loan debt by approximately
$11 million in the fourth quarter of 2021,
resulting in a balance of approximately $85 million, of which the
Company allocates $53 million to its real-estate holdings and $32
million to its dealership blue sky purchase debt.
Cash at the end of the first quarter of 2022 was approximately
$30 million, our highest on record.
Delay of 2021 Financial Results
As stated on our Form 12b-25 filed with the Securities and
Exchange Commission on March 31, 2022, 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
year ended December 31, 2021.
The compilation, dissemination and review of the information
required to be presented in the Company’s Form 10-K for the year
ended December 31, 2021 has imposed time constraints that have
rendered timely filing of the Form 10-K impracticable without undue
hardship and expense to the Company. The Company’s delay in timely
filing its Form 10-K is primarily a result of its ongoing
evaluation of (i) the proper identification and elimination of
intercompany transactions, (ii) estimates of chargeback reserves
for finance and insurance products and (iii) various financial
presentation matters related to the Company’s business, including
as it relates to the presentation, characterization and amounts of
such items in prior fiscal quarters. The Company is also evaluating
the impact of these matters as it relates to certain previously
disclosed material weaknesses in the company’s controls over
financial reporting.
During the first ten months of 2021, the Company acquired a
majority interest in 15 new vehicle franchises, comprising 8 new
dealership locations. The Company also acquired a majority interest
in LTO Holdings, LLC, a Connecticut based automotive leasing
company with an associated collision center that was subsequently
disposed during the fourth quarter. These acquisitions transformed
the Company, enabling it to 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.
The following is a preliminary representation of these
changes:
- Revenue increased by approximately $400 million when compared
to the same period a year ago; and
- Overall Gross Profit increased by approximately $80 million
when compared to the same period a year ago.
LMP intends to release its financial results for 2021 and file
its Annual Report on Form 10-K in the coming weeks.
The Company will hold a conference call to discuss these
financial results when it ascertains a definitive filing date.
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
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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