FORT LAUDERDALE, Fla. – LMP Automotive Holdings, Inc. (“LMP” or the “Company”), an e-commerce and facilities-based automotive retailer in the United States, 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.