Q4 2020 Lmp Automotive Holdings Inc Earnings Call
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Thank you for standing by. This is the conference operator. Welcome to the LMP Automotive Holdings fourth-quarter and full-year 2020 Financial results conference call while participants are in a listen-only mode and the conference is being recorded after a presentation by management. There will be an opportunity to ask questions before we begin. I would like to remind everyone in this call may contain forward-looking statements within the meaning of the private Securities litigation Reform Act of 1995.
All statements pertaining to Future financial and or operating results along with other statements about the future expectations beliefs goals plans or prospects expressed by management constitute forward-looking statements.
Any statements that are not historical facts should be should also be considered forward-looking statements and of course forward-looking statements involve risks and uncertainties. I would now like to turn the call over to mister. Kelsick LMP Automotive Holdings chairman and chief executive officer Mister topic you may begin
Thank you operator and good afternoon all and I want to thank everybody for joining the call today. We are pleased to announce material transformation wage Company by way of Acquisitions that we've closed this month these additions transform the company from a 30 million dollar Revenue company last year off to an excess of $500 million in annualized Revenue this current year representing over sixteen hundred percent increase from twenty twenty also generating twenty million and annualized adjusted ebitda income these transactions represent over thirty 30% return on invested Capital annually, so the dealerships
and almost
What's the average Market return on the real estate the Acquisitions Market remains robust, and the company is well-positioned to continue the acceleration of our growth strategy game.
Some highlights for last year vs. 2019 Revenue increased 150% to a little over thirty million dollars gross profit used by three point two million dollars to three point 1 million dollars.
description Leasing and Rental margins increased by 113% to 56%
adjusted ebitda loss was 1.31 million with an adjusted ebitda margin of 4.3% and Improvement of about three-quarters of $1,000 and 14% respectively. Just did it without loss per share was Thirteen Cents an increase of a penny off.
Shareholder equity and current shares outstanding at fiscal year ending 2020 was 29.1 million and 10.03 million months early. Now. I'm going to pass the call over to our Chief Financial Officer having Bernstein for some more detail on our results.
Thank you, Sam our 2020 adjusted ebit improved by 744000 our Revenue increased over twenty nine hundred eighty thousand off our operating expenses increased from prior-year as we staffed up and increase our acquisition activity. The expenses were seven and a half million dollars in 2020 in increase of approximately 3.5 million / 2019 our subscription service Revenue increased seven and a half percent over prior year and our vehicle sales revenue increased 207% off the 28 million the interest Revenue increased by over $500,000.
And the shareholder Equity increased the $29 million at the end of 2020 up from 10 million twenty. Nineteen. I'm not going to hand it over to Richard Alden Operating Officer to do you have an overview of our near-term Outlook? Thank you Evan. I would also like to thank everyone for joining this call before I get into the details. I want to share with everyone that in early March of this year. And as late as this past Tuesday, we closed on many of our previously announced Acquisitions our investment today is approximately fifty million dollars, which has historically generated over half a billion. That's right $500 billion dollars in revenue and $18 in adjusted life.
We have also.
Invested another $15 and Associated real estate which generates 3.7 million in Grants and adds two million dollars in gross profit.
So again, please keep in mind that our q1 numbers that I'm going to discuss shortly only include two to three weeks of March business from our newly-acquired dealership. Furthermore. We will begin to report additional metrics that compare our figures to other companies and the franchise dealership sector.
So, all right 2021 and twenty twenty-two internal expectations goals are as follows.
As stated as you've heard earlier our revenue for q1 is expected to be in the 29 to 30 million to $31 range, which way should surpass our entire 2020 Revenue.
We anticipate annualized Revenue in 2021 to be $535 million and continue to grow to $580 billion or almost dead in ninety million dollars in 2022. Our adjusted ebitda margins will be in the range of 3.3 to 3.6% for q1 and that number will continue to grow the 4.4 + 21 + 4.9 + 2022.
For q1, we expect to sell four hundred new units 400 pre-owned retail for an additional wholesale unit took a total of about a thousand units again. Keep in mind. This is anywhere from a few days to a couple of weeks worth of business in March.
Our annualized volume for 20 21 is approximately 19600 units and we anticipate that to continue to grow through 2022 with about twelve thousand six hundred units.
Again, as you've heard earlier our total revenue for 2021 is anticipated to be over five hundred six million dollars.
In addition our subscription leasing for q1 is $325,000 and $27 for 20 21 and again continue to grow up to 40 plus million dollars for 2022.
Real estate revenue for q1 $280,000 adjusted for 2021 approximately four million dollars in that will stay calm for 20 22, assuming we don't add any additional businesses. So it's really exciting at all p and I would like to hand it back to Sam our CEO to walk through the company strategic poles Sam. Thank you very much Richard in the nearest between them at the Forefront of our efforts is our unique and profitable industry consolidation effort by means of our dealer principal partnership acquisition structure in which we're seeing extraordinary interest from both small and large dealer groups that want to diversify as well as staying the game.
As well as often.
Right and grow the business the strategy remains lmps primary focus given the impressive returns as stated earlier on invested capital gain a significant addition to income and earnings it provides. We believe this is a swift this way to increase earnings and shareholder value.
Our goal between now and the end of next year is to add an additional 80 to 100 dealerships to our Network.
Which we project will add an additional five point one to six point four billion in revenue and approximately 136 to $170 million and a jack in the. Income post minority interest.
Our third priority is to profitably consolidate modernize the industry through our strategy Acquisitions and such technology physical Mystics that are achieved through the Acquisitions and continue to grow our experienced teams both at corporate and the acquisition partner.
This girls are selection of pre-owned inventories hence providing customers with seamless experience both online and in-person may continue to drive revenue and profit growth.
We intend to launch our plans order online and get it delivered advertising campaign, which internal should improve brand awareness expand our pre-owned phone number sales, utilizing the seventy seven acres of recently acquired real estate, but and Logistics footprint as well as our physical store Network.
And thirdly improve Oil Company wide operating metrics as we achieve the economies of scale.
We'll continue to innovate and expand our e-commerce technology platform in order to improve the experience for customers and a seamless Auto shopping off buying experience some of the features we expect to include
Are as follows?
Estimated trade-in get a certified offer with the same day payment a real-time personalized financing scenario based on customer profile.
Choose a vehicle Finance it and then upload the paperwork just provides a significant savings to sg&a. That's a process typically at the dealership networks off. She was a vehicle protection plan as well and then upload the paperwork.
Then you can set up a time for home delivery and in-store pick-up.
And make payments and manager accounts online.
I would like to turn it over to the operator for questions and answers.
Thank you. At this time. We will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad a confirmation tone not indicate your line as in the question queue. You may press start to if you would like to remove your question from the Q4 participants using speaker equipment. It may be necessary to pick up your handset before pressing the star Keys. One moment, please while we pull for questions.
Once again, that is star one if you would like to ask a question.
Our first question comes from that horn private investor, please go ahead.
Hi, good afternoon, everybody.
My question is pretty simple. I just I think everyone wants to know what happened with the Atlantic deal.
I could answer that this Sam is a unique dealership group. It's essentially the most newest Dealer ship group in the United States and that deal was unable to be consummated because of that there are parameters off.
better involved with the factories Etc that if they don't grandfather it in then
it can't be sold to one buyer.
Okay, great. I have one other question. I just want to know when you anticipate adding all the new acquisitions into the online where we can see the subscriptions and off the vehicles for sale everything that's been acquired at this point.
That's in progress and we're targeting.
The next several weeks to Roland only amatory our systems.
Fantastic, that's all I have. Thank you. Thank you, Matt.
There are no further questions. I would like to turn the floor.
We have one more. Hold on next question shelf our private investor, please go ahead.
Hello, Sam Mitchell far down in South Florida. Just curious. When is the new design website going to be dead live?
affect
Currently why?
And the back ends are integrated to our dealership Acquisitions that we closed and we're now synchronizing less technology but more of a human effort of process and procedure to roll the inventory in after a vehicle's photographed. It's just automatically appear on our systems and automating the process end-to-end. So, um, there's not much human interaction there, but the new site is live off the inventory will start rolling in in the coming weeks.
Is it the same app or is it going to be in new application?
Okay. So the website is lives the app should come live with targeting April call it third week in April two then roll that into the app look and feel as well as the inventory.
Okay, excellent. Thank you. Thank you Matt. Thank you Mitchell. Sorry. You're welcome.
Thank you. I would like to turn the floor over to Sam for closing remarks.
Well, thank you all for joining the call today and looking forward to our continued progress and keeping you up-to-date. Thanks. Again is concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.