FORT LAUDERDALE, Fla., Dec. 22, 2020 (GLOBE NEWSWIRE) -- LMP Automotive Holdings, Inc. (NASDAQ: LMPX) (the “Company” or “LMP”), an e-commerce and facilities-based platform for consumers who desire to buy, sell, subscribe to or finance pre-owned and new automobiles, today announced it has entered into a commitment letter with Truist Bank for a $192 Million financing (subject to terms and conditions set forth in the commitment letter) for the Company’s Stage 1 southeast acquisitions.
Sam Tawfik, LMP’s Chief Executive Officer, stated, “We intend to use the proceeds to fund the consummation of our stage 1 acquisitions which consist of 13 dealerships, including 12 new vehicle franchises, and 6 parcels of dealership real estate totaling approximately 67 acres in the Southeast. A portion of the proceeds will be utilized for new and used vehicle floorplan plus working capital. We expect the stage 1 closing to occur in January 2021, subject to customary closing conditions and manufacturer approval.”
Evan Bernstein, LMP’s Chief Financial Officer, stated, “The closings of the acquisitions of this initial stage of dealerships is expected to be immediately accretive to income, adding approximately 2,300 new and used vehicles valued at roughly $58,000,000.” Mr. Bernstein added, “Our 2021 outlook, inclusive of synergies and accretions for this stage 1 group, is expected to be in the range of $510,000,000 to $540,000,000 in revenue, $22,000,000 to $24,000,000 in adjusted EBITDA, or $2.20 to $2.40 per share, based on roughly 10,000,000 shares outstanding. We expect 2022 full year operations attributable to this stage 1 group to produce approximately $590,000,000 in revenue and $29,000,000 in adjusted EBITDA, or $2.90 per share, based on roughly 10,000,000 shares outstanding.”
Richard Aldahan, LMP’s Chief Operating Officer, added, “We are thankful to both LMP and our counterparty employees and professionals, who have worked tirelessly over the last several months on these transactions. The talent in our combined organizations and the resilience of our business model will make us a stronger and a more diversified company. I am pleased to welcome our new colleagues and look forward to working and growing together as we continue to modernize the shopping experience for our consumers as we expand the roll-out of our hybrid e-commerce home delivery, site-to-store, and ship-from-store delivery services. These partnerships significantly expand our e-commerce platform, sales, subscription, and fulfillment footprint in some of the fastest growing regions in the market. Importantly, we will also have more cost-efficient e-commerce fulfillment, reconditioning, and service capacity. We will also increase our vehicle storage capacity by approximately 6,000 units on 67 acres. As we begin to integrate our organizations and increase our inventories shortly after the close, the roll-out of the Company’s hybrid e-commerce home delivery, site-to-store, and ship-from-store delivery platform will magnify our disruptive business model. Our ability to cost-effectively expand our free delivery radius and cut out multiple legs of costly transportation, logistics and reconditioning costs, will be an important factor in increasing margins and enhancing profitability as we build on our historical success.”
“I also would like to commend our new partners on their organic growth and superior performance during 2020. Their combined income grew over 45% on an annualized basis versus 2019 which is an impressive achievement. This performance outpaced our public peers, delivering an average of $2,644 gross profit per used unit sold and $3,029 gross profit per new unit sold. I would also like to add that LMP and the seller of the single point Southeast Toyota Franchise Dealership that the Company had announced a definitive agreement to acquire on July 17, 2020, have jointly consented to terminate our agreement,” Mr. Aldahan concluded.
ABOUT LMP AUTOMOTIVE HOLDINGS, INC. – “BUY, SUBSCRIBE, SELL AND REPEAT.”
LMP Automotive Holdings, Inc. (NASDAQ: LMPX) describes its business model as “Buy, Subscribe, Sell and Repeat.” This means that we “Buy” pre-owned automobiles primarily through auctions or directly from other automobile dealers, and new automobiles from manufacturers and manufacturer distributors. We “Subscribe” the automobiles to our customers by allowing them to enter into our subscription plan for automobiles in which customers have use of an automobile for a minimum of thirty (30) days. LMP’s vehicle subscription membership includes monthly swaps and offers the flexibility to return the vehicle without penalty, upgrade your vehicle to a more premium model or downgrade for a lesser cost model when you like. We “Sell” our inventory, including automobiles previously included in our subscription programs, to customers as well, and then we “Repeat” the whole process.
LMP Automotive Holdings, Inc.
500 East Broward Boulevard, Suite 1900
Fort Lauderdale, FL 33394
For more information visit: https://lmpmotors.com/.
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.