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% to 19.5%
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."

_______________

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 $128.0 million to $141.4 million;

EBITDA¹ increased to $8.4 million from a loss of $0.35 million;

Adjusted Net Income per share was $0.85;

Adjusted EBITDA increased to $11.9 million, from a loss of $0.24 million;

Adjusted EBITDA per share was $1.18;

Net income for the quarter (excluding noncontrolling interests) was $4,769,270 from a net loss of $752,087, an improvement of $5,521,357 and;

Net income per share increased to $0.42, or an improvement of $0.50 as compared to a net loss of $0.08 per share.

Third quarter 2021 revenue increased to $141.4 million, an increase of $128.0 million from $13.4 million in the third quarter of 2020. The growth was primarily driven by sales from acquisitions closed year to date.

Total Selling General & Administrative expenses were $20.5 million in the third quarter of 2021, compared to $1.4 million in the third quarter of 2020. The increase in operating expenses was primarily due to expenses related to acquisitions and operating expenses from acquisitions closed in the first half of 2021.

Adjusted EBITDA in the third quarter of 2021 totaled $11.9 million, compared to an Adjusted EBITDA loss of $0.24 million in the third quarter of 2020. The increase in Adjusted EBITDA was primarily related to EBITDA contributions from acquisitions closed in the first half of 2021.

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.

LMP Automotive Holdings, Inc. Announces Third Quarter 2021 Financial Results