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FORT LAUDERDALE, Fla., Nov 12, 2020 (GLOBE NEWSWIRE via COMTEX) —
All financial comparisons stated below are versus Q2 2020, unless otherwise noted
FORT LAUDERDALE, Fla., Nov. 12, 2020 (GLOBE NEWSWIRE) — LMP Automotive Holdings, Inc. (NASDAQ:LMPX) (“LMP” or the “Company”), an e-commerce and facilities-based platform for consumers who desire to buy, sell, subscribe for or finance pre-owned and new automobiles, today announced its third quarter 2020 financial results for the period ended September 30, 2020. As previously announced, Management will hold a conference call at 4:30p.m. ET today to review and discuss the Company’s business and results.
Summary of Q3 2020 Results
All financial comparisons stated below are versus Q2 2020, unless otherwise noted
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Revenue totaled $13.371 million, an increase of 73%
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Total gross profit was $1.121 million
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Gross profit margin was 8.4%
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Net loss was $752,000, or ($.08) per share based on 9.92 million weighted average shares outstanding.
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Cash, shareholder equity, and current shares outstanding at the end of the quarter was $3,330,118 $31,629,124, and 9,985,880, respectively.
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Adjusted EBITDA1 was ($68) thousand or ($0.01) per share.
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Adjusted EBITDA margin was (0.5%).
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Adjusted net loss was $541,000, or ($0.05) per share.
Third Quarter 2020 Financial Results Discussion
All financial comparisons stated below are versus Q2 2020, unless otherwise noted
Total revenue in the third quarter of 2020 increased 73% to $13.371. million, compared to $7.715 million in the second quarter of 2020. The growth in sequential revenue in the third quarter of 2020 was primarily driven by the increase in sales from ‘sales-type’ lease contracts, and increased vehicle sales revenues.
Gross profit in the third quarter of 2020 decreased 30% to $1.121 million, compared to $1.608 million in the second quarter of 2020 primarily driven by the higher mix of sales versus subscriptions and ‘sales-type’ lease contracts.
The Company’s SG&A expenses were $881,538 during the three-month period ended September 30, 2020, an increase of $206,403 versus $675,135 during the three-month period ended June 30, 2020. The increase is mainly due to expenses related to payroll of approximately $95,000 to build our management team and outside services of approximately $83,000.
Acquisition, consulting, and legal expenses were $419,322 during the three months ended September 30, 2020, as compared to $280,650 during the previous three-month period ended June 30, 2020 due to increased activity.
Net loss in the third quarter of 2020 totaled $752,087, or a loss of $0.08 per share, compared to a net income of $216,102, or a profit of $0.02 per share, in the second quarter of 2020. Total shares outstanding as of September 30, 2020 were 9,985,880, versus 9,924,506 on June 30, 2020.
Cash totaled $3,330,118 at September 30, 2020. This represented a decrease of $14,320,320 from $17,650,438 at June 30, 2020. The decrease was primarily the result of vehicle purchases, purchase of real estate for our dealership location and escrow deposits for contracted dealership and related real estate acquisitions.
Additional Third Quarter 2020
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