LMP Automotive Holdings, Inc. Provides a Corporate Update and Announces Delay of its Second Quarter 2022 Financial Results
August 16 2022 - 4:00PM
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
announced a delay of its second quarter 2022 financial results for
the period ended June 30, 2022.
Delay of its Second Quarter 2022 Financial Results As LMP
continues its 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, in each case, in the context of its ongoing preparation
of its Annual Report on Form 10-K for the year ended December 31,
2021, LMP will be unable to timely report its financial results for
the second quarter of 2022. There is a significant change in our
results of operations in the second fiscal quarter of 2022 when
compared to the results from the corresponding period in the prior
year, primarily as a result of acquisitions that closed during the
course of calendar year 2021. 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 an approximation of these changes:
- Revenue for the
quarter ended June 30, 2022 increased approximately $24 million
when compared to the same period a year ago; and
- Gross Profit for the
quarter ended June 30, 2022 increased approximately $6 million when
compared to the same period a year ago.
The following are preliminary estimates of our performance for
the quarter ending June 30, 2022:
- Revenue to be
approximately $164 million
- Overall Gross Profit
to be approximately $32 million
- Cash at
approximately $36 million
Year to Date 2022 Financial Update
- Year to date, we are
witnessing robust gross profits and revenue growth, Revenue and
gross profits for the quarter ended June 30, 2022 are the highest
in the Company’s history
- Cash on August 1,
2022 was approximately $37 million, our highest on record
Sam Tawfik, the Company’s Chairman and Chief Executive Officer
commented, "With our current cash 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." LMP intends to both release its financial
results for 2021 and file its Annual Report on Form 10-K and
release its financial results for the first quarter of 2022 and
file its Periodic Report on Form 10-Q for the first and second
quarters of 2022 as soon as reasonably practicable. 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:
www.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.
LMP Automotive (NASDAQ:LMPX)
Historical Stock Chart
From Apr 2024 to May 2024
LMP Automotive (NASDAQ:LMPX)
Historical Stock Chart
From May 2023 to May 2024