LMP Automotive Holdings, Inc. Announces Third Quarter 2021 Financial Results
LMP Automotive Holdings reported a strong financial performance for Q3 2021, with revenue rising $128.0M to $141.4M. Gross profit increased 26.7M to 27.6M, enhancing the gross profit margin to 19.5%. Adjusted net income reached $8.6M or $0.85 per share. The company noted continued consumer demand amidst supply chain disruptions and low vehicle inventory levels. Management announced pending acquisitions aimed to expand geographic presence and market density. Adjusted shareholder equity improved by $19.3M to $50.9M.
- Revenue growth: $141.4M, up $128.0M YoY.
- Gross profit rose to $27.6M, with a margin of 19.5%.
- Adjusted net income increased to $8.6M, or $0.85 per share.
- Adjusted EBITDA climbed to $11.9M from a prior loss.
- Pending acquisitions expected to enhance regional footprint.
- Total Selling General & Administrative expenses surged to $20.5M from $1.4M YoY.
Third Quarter 2021 Highlights
All financial comparisons stated below are compared to the third quarter of 2020, unless otherwise noted.
- Revenue increased
$128.0M to$141.4M - Overall Gross Profit increased by
$26.7M to$27.6M - Gross Profit Margin increased by
12.9% to19.5% - Adjusted Net Income1 was
$8.6M or$0.85 per share - Adjusted EBITDA1 increased by
$12.1M to$11.9M or$1.18 per share - Adjusted Shareholder Equity1 increased by
$19.3M to$50.9M
FORT LAUDERDALE, Fla., Nov. 15, 2021 (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 reported its third quarter 2021 financial results. Management will hold a conference call at 4:30p.m. ET today to review and discuss the Company's business and results.
Sam Tawfik, the Company’s Chairman and Chief Executive Officer commented, “During the quarter, consumer demand continued to outpace supply, driven by the ongoing manufacturing supply chain disruptions, historical consumer purchase deferrals and the increased consumer desire for personal transportation. New vehicle inventory remains at historically low levels and predicted to remain the same into the near future.
New vehicle sales are constrained by reduced production volume and low inventory levels. We expect this pent-up demand to continue to support sales for the foreseeable future."
Tawfik concluded, “LMP has signed and announced acquisition agreements which are subject to customary terms and conditions, including manufacturer approval, and are expected to close in the coming months.
These acquisitions will strategically add density in key geographic markets and increase our regional footprint.”
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1 EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Shareholder Equity are non-GAAP financial measures which are reconciled to the most directly comparable measures calculated in accordance with GAAP under the caption “Non-GAAP Financial Measures.”
Third Quarter 2021 Financial Discussion
Revenue increased by
EBITDA1 increased to
Adjusted Net Income per share was
Adjusted EBITDA increased to
Adjusted EBITDA per share was
Net income for the quarter (excluding noncontrolling interests) was
Net income per share increased to
Third quarter 2021 revenue increased to
Total Selling General & Administrative expenses were
Adjusted EBITDA in the third quarter of 2021 totaled
Corporate Developments
Since the end of the second quarter, we:
Closed the acquisition of White Plains Chrysler Dodge Jeep Ram in October which is expected to be immediately accretive to income and to contribute favorably within our strategic plan of acquisitions.
Future Internal Near-Term Goals:
Enter New Geographical Markets
- At the forefront of our strategy is our unique and profitable industry consolidation effort by means of our dealer partnership structure in which we are seeing extraordinary interest from both small and large dealer groups that want to diversify, “stay in the game” and operate and grow the business. This strategy remains LMP’s primary focus given the impressive returns on invested capital and the significant addition to income and earnings per share it provides. We believe this is the swiftest way to increase earnings and shareholder value.
- Profitably consolidate and modernize the industry through our strategy, technology, physical logistics network, growing our experienced teams and growing our selection of owned inventories, providing customers with a seamless experience both online and in person.
Drive Revenue and Profit Growth in Existing Markets
- Launch our planned “Order Online and Get It Delivered” advertising campaign.
- Improve brand awareness.
- Leverage our acquired dealership network and real estate to improve our logistics flexibility, expand our pre-owned inventory to grow sales through our e-commerce channels.
- Improve all company-wide operating metrics as we achieve economies of scale.
Innovate and Expand our E-commerce Technology Platform
- Continue building out our integrated online sales platform to provide an improved experience for consumers and a seamless auto shopping and buying experience. Some of the features we expect to add include:
- Estimate trade-in, get a certified offer with same-day payment
- Real-time, personalized financing
- Choose a vehicle and finance then upload important paperwork
- Choose vehicle protection offerings then upload important paperwork
- Set up a time for home delivery or in-store pickup
Non-GAAP Financial Measures
The Company has provided in this release certain non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Shareholder Equity to supplement its financial results that are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Management uses these financial metrics internally in analyzing the Company’s financial results to assess operational performance and to determine the Company’s future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to these financial metrics in assessing our performance and when planning, forecasting and analyzing future periods. The Company believes these financial metrics are useful to investors and others to understand and evaluate the Company’s operating results and it allows for a more meaningful comparison between the Company’s performance and that of competitors. Our use of EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per share, and Adjusted Shareholder Equity have limitations as analytical tools, and you should not consider these performance measures in isolation from or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, you should consider these financial metrics along with other financial performance measures, including total revenues, total gross profit and net income (loss) presented in accordance with GAAP.
EBITDA and Adjusted EBITDA for 2021 and 2020
The Company defines EBITDA as net income (loss) before interest expense (excluding Floorplan interest), income tax expense, depreciation (including vehicle inventory impairment) and amortization.
| For the Three Months | ||||||||||||
| Ended September 30, | ||||||||||||
| EBITDA | 2021 | 2020 | Change | |||||||||
| Net income (loss) | $ | 5,492,793 | $ | (752,087 | ) | $ | 6,244,880 | |||||
| Interest expense (1) | 1,134,751 | 97,903 | 1,036,848 | |||||||||
| Income Tax | 468,802 | - | 468,802 | |||||||||
| Depreciation and amortization | 876,428 | 167,103 | 709,325 | |||||||||
| Fleet vehicle depreciation | 331,144 | 134,209 | 196,935 | |||||||||
| EBITDA | $ | 8,303,918 | $ | (352,872 | ) | $ | 8,656,790 | |||||
| (1) Excludes floorplan interest | ||||||||||||
The Company defines Adjusted EBITDA as EBITDA before acquisition and financing expenses, consulting, legal and auditing expenses incurred in connection with the acquisitions during the quarter, employee stock compensation, adjustments in warranty liability, and equity-based compensation.
| For the Three Months | ||||||||||||||
| Ended September 30, | ||||||||||||||
| Adjusted EBITDA | 2021 | 2020 | Change | |||||||||||
| EBITDA (1) | $ | 8,303,918 | $ | (352,872 | ) | $ | 8,656,790 | |||||||
| Adjustment for noncontrolling interests, employee bonuses & stock compensation | 1,442,231 | - | 1,442,231 | |||||||||||
| Adjustment in warrant liability | (1,180,157 | ) | - | (1,180,157 | ) | |||||||||
| Acquisition expenses | 1,206,583 | - | 1,206,583 | |||||||||||
| Consulting, legal and auditing | 1,919,018 | - | 1,919,018 | |||||||||||
| Equity based compensation | 191,104 | - | 191,104 | |||||||||||
| Legal settlement | - | 113,752 | (113,752 | ) | ||||||||||
| Adjusted EBITDA | $ | 11,882,697 | $ | (239,120 | ) | $ | 12,121,817 | |||||||
| Adjusted EBITDA per share | $ | 1.17 | $ | (0.02 | ) | |||||||||
| Weighted average shares of common stock outstanding, basic | 10,118,277 | 9,920,440 | ||||||||||||
| (1) Excludes floorplan interest | ||||||||||||||
Adjusted Net Income for 2021 and 2020
The Company defines Adjusted Net Income as net income (loss) before employee stock compensation expense, adjustment in warranty liability, acquisition expenses, consulting, legal and auditing expenses incurred in connection with the acquisitions during the quarter, equity-based compensation, and legal settlement expenses.
| For the Three Months | ||||||||||||||
| Ended September 30, | ||||||||||||||
| Adjusted Net Income and Adjusted Earnings Per Share | 2021 | 2020 | Change | |||||||||||
| Net income (loss) attributable to common shareholders | $ | 4,289,171 | $ | (752,087 | ) | $ | 5,041,258 | |||||||
| Change in noncontrolling interest redemption value | 6,320 | - | 6,320 | |||||||||||
| Net income attributable to noncontrolling interest | 723,523 | - | 723,523 | |||||||||||
| Net income (loss) attributable to common shareholders | 5,019,014 | (752,087 | ) | 5,771,101 | ||||||||||
| Adjustment for noncontrolling interests, employee bonuses & stock compensation | 1,442,231 | - | 1,442,231 | |||||||||||
| Adjustment in warrant liability | (1,180,157 | ) | - | (1,180,157 | ) | |||||||||
| Acquisition expenses | 1,206,583 | - | 1,206,583 | |||||||||||
| Consulting, legal and auditing | 1,919,018 | - | 1,919,018 | |||||||||||
| Equity based compensation | 191,104 | - | 191,104 | |||||||||||
| Legal settlement | - | 113,753 | (113,753 | ) | ||||||||||
| Adjusted net income (loss) attributable to common shareholders | $ | 8,597,793 | $ | (638,334 | ) | $ | 9,236,127 | |||||||
| Adjusted basic net income (loss) per share | $ | 0.85 | $ | (0.06 | ) | |||||||||
| Weighted average shares of common stock outstanding, basic | 10,118,277 | 9,920,440 | ||||||||||||
Adjusted Shareholder Equity for 2021 and 2020
The Company defines Adjusted Shareholder Equity as total shareholders’ equity before non-cash equity items: warrants, adjustment for noncontrolling interest, and issuance of common stock for acquisitions.
| For the Nine Months | |||||||||||
| Adjusted Equity | Ended September 30, | ||||||||||
| 2021 | 2020 | Change | |||||||||
| Total shareholders' equity | $ | 36,917,102 | $ | 31,629,124 | $ | 5,287,978 | |||||
| Warrants | 4,625,874 | - | 4,625,874 | ||||||||
| Adjustment for noncontrolling interest | 8,569,544 | - | 8,569,544 | ||||||||
| Issuance of common stock for acquisition | 304,394 | - | 304,394 | ||||||||
| Share-based compensation | 462,413 | - | 462,413 | ||||||||
| Adjusted Equity | $ | 50,879,327 | $ | 31,629,124 | $ | 19,250,203 | |||||
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:
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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