LMP Automotive Holdings, Inc. Engages KPMG as its Independent Auditor for Fiscal Year 2021 and Provides Outlook and Updates on its M&A, Corporate and Other Activities
FORT LAUDERDALE, Fla., Feb. 11, 2021 (GLOBE NEWSWIRE) -- 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.
