FORT LAUDERDALE, Fla., July 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 financial update and announced it has entered into a $15.8 million all cash agreement (the “Agreement”) to sell its Chrysler Jeep Dodge Ram Dealership in White Plains, New York.
- Expected closing is October of this year, subject to the terms of the Agreement.
Second Quarter 2022 Highlights
Year to date, we are witnessing robust gross profits and revenue growth quarter-over-quarter. Revenue, Gross Profits and cash for the quarter ending June 30, 2022 were at their highest levels in the Company’s history.
The following are preliminary estimates of our overall dealership portfolio performance for the quarter ending June 30, 2022:
Revenue of approximately $164 million, a 10% increase compared to the first quarter of this year (an estimated $149 million).
Gross Profit of approximately $32 million, a 10% increase compared to the first quarter of this year (an estimated $29 million).
Cash of approximately $36 million, a 20% increase compared to the first quarter of this year (approximately $30 million).
We reduced our existing term loan debt by approximately $7.5 million, or 8.8%, in the second quarter of this year, resulting in an outstanding loan balance of approximately $77.5 million.
We believe that our remaining real estate portfolio, which was appraised at approximately $50 million, plus our dealerships, including the Chrysler Jeep Dodge Ram dealership in White Plains, New York that we have contracted to sell, can be worth approximately $104 million based on a modest 0.16 multiple of quarterly annualized revenue.
We believe that our stock price does not reflect net asset value of our company and continue to seek strategic options to maximize shareholder value and we have engaged BofA Securities to assist us in the process.
Sam Tawfik, the Company’s Chairman and Chief Executive Officer commented, “2022 is shaping up to be a strong year for LMP, with the firm generating record revenue and gross profits, as well as numerous other records in each of our lines of business, all while maintaining credit discipline and strengthening our balance sheet on a quarterly basis. With our current cash and equity 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.”
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.
LMP Automotive Holdings, Inc.
500 East Broward Boulevard, Suite 1900
Fort Lauderdale, FL 33394
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