LMP Automotive Holdings, Inc. Provides Financial Update and Signs $15.8 Million Cash Settlement for the Sale of its New York Chrysler Jeep Dodge Ram Dealership

LMP Automotive Holdings, Inc.

FORT LAUDERDALE, Fla., July 15, 2022 (GLOBE NEWSWIRE) — LMP Automotive Holdings, Inc. (NASDAQ: LMPX) (“LMP” or the “Company”), a United States-based automotive and e-commerce retailer, today provided a financial update and announced that he had entered into a $15.8 million cash financing agreement (the “Agreement”) to sell his Chrysler Jeep Dodge Ram dealership in White Plains, New York.

Second Quarter 2022 Highlights

Year-to-date, we’ve seen solid quarter-over-quarter gross profit and revenue growth. Revenue, gross profit and cash for the quarter ending June 30, 2022 were at their highest levels in company history.

The following are preliminary estimates of the overall performance of our dealership portfolio for the quarter ending June 30, 2022:

Revenues of approximately $164 million, a 10% increase from the first quarter of this year (approximately $149 million).

Gross profit of approximately $32 million, an increase of 10% compared to the first quarter of this year (approximately $29 million).

Cash of approximately $36 million, a 20% increase from the first quarter of this year (approximately $30 million).

We reduced our existing term loan by approximately $7.5 million, or 8.8%, during the second quarter of this year, resulting in an outstanding balance of approximately $77.5 million dollars.

We believe that our remaining real estate portfolio, which has been valued at approximately $50 million, plus our dealerships, including the Chrysler Jeep Dodge Ram dealership in White Plains, New York, which we have committed to sell, may be worth approximately $104 million based on a modest 0.16 multiple of annualized quarterly revenue.

We believe that our stock price does not reflect the net asset value of our company and continue to seek strategic options to maximize shareholder value and have engaged BofA Securities to assist us in the process.

Sam Tawfik, President and CEO of the company, said: “2022 is shaping up to be a strong year for LMP, with the business generating record gross revenues and profits, as well as many 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 strengthen as we generate earnings and modest leverage, we are committed to managing our business responsibly and prudently creating value for our shareholders. “

ABOUT LMP AUTOMOTIVE HOLDINGS, INC.

LMP Automotive Holdings, Inc. (NASDAQ: LPX) is a growing company with a long-term plan of profitable consolidation and partnership with automotive dealer groups in the United States. We offer a wide range of products and services covering the entire life cycle of a vehicle, including new and used vehicles, financing and insurance products, as well as repair and automotive maintenance.

Our proprietary e-commerce technology and strategy is designed to disrupt the industry by leveraging our experienced teams, growing selection of owned inventory and physical logistics network. We seek to provide customers with a seamless experience both online and in person. Our physical logistics network allows us to provide convenient free drop-off points for customers and provide services throughout the life cycle of the property. We use digital technologies to reduce our customer acquisition costs, achieve operational efficiencies and generate additional revenue. Our unique growth model generates significant cash flow, which funds our innovation and expansion into new geographic markets, as well as the strategic building of dealer networks, creating personal transportation solutions that consumers seek.

Investor Relations:

LMP Automotive Holdings, Inc.
500 East Broward Boulevard, Suite 1900
Fort Lauderdale, FL 33394
[email protected]

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. These statements include, but are not limited to, all 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, followed by or include the words “aims”, “anticipates”, “believes”, “estimates”, “expects”, “plans”, “intends”, “likely”, “prospects”, “plan”, “potential”, “project”, “projection”, “seek”, “may”, “could”, “can”, “should”, “do”, will”, the negatives of those these and other words and terms of similar meaning. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could adversely affect our business, results of operations, our financial condition and the value of our shares. Factors that could cause actual results to differ materially from those currently anticipated include: our reliance on external sources for funding our operations; our ability to effectively execute our business plan; our ability to maintain and develop r our reputation and to obtain and maintain market acceptance of our services and our 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 infringement of the intellectual property rights of others; our ability to maintain and develop relationships with existing automotive customers and suppliers; and our ability to compete and succeed in a highly competitive and evolving industry; and other risks described in our filings with the SEC. There can be no assurance that forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of that date. We expressly disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except if required by law.

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