FORT LAUDERDALE, Fla., April 15, 2022 (GLOBE NEWSWIRE) -- 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 1900 Fort Lauderdale, FL 33394 investors@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.
