LMP Automotive Holdings, Inc. Provides a Corporate Update and Announces Delay of its Second Quarter 2022 Financial Results

Rhea-AI Summary

LMP Automotive Holdings, Inc. (NASDAQ: LMPX) announced a delay in reporting its second quarter 2022 financial results, attributing the postponement to ongoing evaluations of intercompany transactions and other financial matters. The Company reported approximately $164 million in revenue for the quarter, an increase of around $24 million year-over-year, with gross profit rising by $6 million to about $32 million. Cash reserves stood at approximately $36 million, the highest on record. LMPX aims to release its financial results and filings as soon as possible.

Positive

• Revenue increased by approximately $24 million year-over-year for Q2 2022.
• Gross Profit for Q2 2022 increased by approximately $6 million compared to the prior year.
• Q2 2022 revenue is the highest in the Company’s history, reaching approximately $164 million.
• Q2 2022 gross profit also set a record at approximately $32 million.

Negative

• Delay in reporting second quarter 2022 financial results may raise concerns about financial governance.
• The need for evaluations of intercompany transactions suggests potential complexities in financial management.

FORT LAUDERDALE, FL, Aug. 16, 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 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.

FAQ

What were LMPX's revenue and gross profit for Q2 2022?

LMPX reported approximately $164 million in revenue and around $32 million in gross profit for Q2 2022.

Why did LMPX delay its Q2 2022 financial results?

LMPX delayed its Q2 2022 financial results due to ongoing evaluations of intercompany transactions and other financial presentation matters.

How does LMPX's Q2 2022 performance compare to the previous year?

For Q2 2022, LMPX's revenue increased by approximately $24 million and gross profit rose by about $6 million compared to Q2 2021.

What is LMPX's cash position as of August 1, 2022?

As of August 1, 2022, LMPX's cash position was approximately $37 million, the highest on record.

When will LMPX release its delayed financial results?

LMPX intends to release its financial results for 2021 and the first and second quarters of 2022 as soon as reasonably practicable.