LMP Automotive Holdings, Inc. Engages KPMG as its Independent Auditor for Fiscal Year 2021 and Provides Outlook and Updates o...
February 11 2021 - 4:15PM
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 engaged KPMG LLP (“KPMG”) as
its independent auditor for the Company’s fiscal year ending
December 31, 2021 and is providing outlook and updates on its
M&A, corporate and other activities.
Evan Bernstein, LMP’s Chief Financial Officer, stated, "Given
LMP’s M&A and capital markets strategies and the upcoming
closings of our stage 1 acquisitions, the Company has decided it
was an appropriate time to transition to a Big 4 accounting
firm. LMP has selected KPMG based on its industry expertise,
diversity, and reach. The upcoming closings 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 3 Southeast states, are expected
to add revenue in the range of $510,000,00 to $540,000,000 and
$20,600,000 to $21,000,000 in net income or $1.89 to $1.92 per
share in 2021 on an annualized basis, based on an expected
10.9 million shares outstanding post-closing.”
Richard Aldahan, LMP’s Chief Operating Officer, added, “The
Company expects to close our stage 1 acquisitions in the coming
weeks. These partnerships significantly expand our inventory on our
proprietary e-commerce platform as well as our sales 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. Our e-commerce systems are already staged to
synchronize inventory with all of the acquired dealerships,
enabling us to significantly increase inventory on both our
lmpmotors.com website and mobile app shortly after the close. LMP
plans to expedite and expand the roll-out of the Company’s hybrid
e-commerce home delivery, site-to-store, and ship-from-store
delivery strategy, expand our free delivery radius by cutting out
multiple legs of costly transportation, logistics and
reconditioning costs, thus increasing margins and enhancing
profitability as we build on our historical success.”
“I would also like to add that LMP and Atlantic Automotive Group
have mutually agreed to terminate their acquisition agreements,
which the Company had announced on January 13, 2021, primarily due
to contiguous dealership location matters that the parties could
not overcome. Atlantic Automotive Group has agreed to pay a portion
of LMP’s transaction costs. Atlantic Automotive Group was
designated in our stage 2 acquisitions that was encompassed by our
previously announced $660M Syndicated Senior Credit Facilities
Arrangement on December 10, 2020. LMP believes it can deploy
capital more efficiently at significantly lesser multiples of
income than what it was paying for Atlantic Automotive Group. We
are in the process of considering other alternative strategic
transactions in our stage 2 acquisition plan, including mergers,”
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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