Q2 2021 Lmp Automotive Holdings Inc Earnings Call

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Greetings, ladies and gentlemen, welcome to the L. M. P automotive holdings incorporated second quarter 2021 financial results conference call.

All participants are in a listen only mode and the conference is being recorded.

After a presentation by management there'll be an opportunity to ask questions before.

Before we begin I'd like to remind everyone that 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 or operating results along with other statements about future expectations beliefs goals plans or prospects expressed by Madison constitute forward looking statements.

Any statements that are not historical facts should also be considered forward looking statements and of course forward looking statements involve risks and uncertainties.

I'd now like to turn the call over to Mr. Sam topic L. M. P automotive Holdings', Chairman and Chief Executive Officer. Mr. Topic. Please go ahead.

Thank you operator, and good afternoon, everybody and thank you for joining our call today today's call participants along with myself will be Richard Allen.

Our Chief operating officer, along with Robert Bella Flores, our Chief Financial Officer.

I am pleased to report on that.

Another record quarter second quarter revenue.

Adjusted EBITDAR.

Was.

It was $140 million and $11.1 million, respectively, which translates to $1.10 per share.

On an annualized basis in the second half of this year, we're expecting revenue to be approximately $610 million and adjusted EBITDA of $44 million or $4.38 a share.

We ended the second quarter was approximately $24.3 million in cash and $46.9 million and adjusted shareholder equity.

The company is generating significant cash flows and as of August 10, cash, including escrow deposits for acquisitions totaled.

Seven $6 million.

We expect to begin closing some of our contracted acquisitions.

Our previously announced beginning September on a rolling basis, and our goal is to have substantially all of them close by November of this year.

Upon closing of all of the acquisitions, we previously announced L. M P's turtle franchise dealership.

And retail and fleet operation location count would be 28 and 21, respectively.

With expected consolidated annualized revenue adjusted EBITDA and adjusted EBITDA per share run rate to be approximately one $4 billion $88 million.

$8.04 respectively.

These acquisitions will strategically add density in key geographic markets and increase our regional footprint.

Our pipeline of prospective dealership acquisitions is more attractive than ever since.

And we believe we're on track to achieve our goal of.

80 to 100 locations within our network by that I lay of mergers and acquisitions and partnerships.

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We project these additions to our network combined with our current operations and contracted acquisitions on an annualized basis will propel the company to a total of $6.5 billion.

Dollars to $7 billion in revenue.

317 to 376 million and adjusted EBITDA.

Or $16.84, so $19.04 a share.

And adjusted EBITDA.

Now I'm going to pass the call over to Richard Allen, Our Chief operating officer.

Thank you Tim.

Thanks.

Thank you Sam and thanks.

Paul.

Before I D.

Details I would like.

I apologize for their strong performance this quarter and year to date.

Additionally, I want to thank every member of our corporate team for their dedication and for their contribution to our organization.

So far this year, we continue to see demand outpacing supply for new vehicles. We expect this to continue into 2022.

We believe this is due to the pent up demand.

Percentage of consumers, who have deferred their vehicle purchases in 2020.

In addition references for transportation due to the current suburban housing migration and due to the component supply shortages within the manufacturing process.

I am happy to report that we continue to rank in the upper 50 percentile as compared to our public industry peers.

All of these notable metrics include the following.

Our revenue growth percentage as compared to previous year's comparable quarter, our gross profit margins of eight 9% adjusted EBITDA margin.

Yeah.

Adjusted net income as a percentage of revenue up six 2%.

Gross and net leverage as compared to adjusted EBITDA.

We ended the second quarter with our corporate debt excluding floor plan.

$97 million approximately $49 million.

Real estate, we acquired and the balance of approximately $48 million for our dealerships that we had purchased.

We believe the strength L. M P. Amongst the highest return on invested capital amongst our peers.

We are witnessing the result of our partnership acquisition model that we feel Felicia the real potential of our partners and their dealerships.

Yes.

The best is yet to come.

Thank you again for joining the call.

I'll turn the call for questions and answers.

Later.

Thank you.

Ladies and gentlemen, we will now be conducting a question and answer session.

If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation home indicate and why this is the question queue.

Press Star two if you'd like to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys.

Please poll for questions.

Our first question comes from the line of Mitchell Berger private Investor. Please proceed with your question.

Yeah.

Hey, guys excellent quarter that you had I'm.

I'm just wondering.

Obviously, you guys notice the stock prices is not really valuing the company at the right levels.

Are there things you guys are going to be doing to get it to be fairly valued at some point.

Oh, Hi, Michelle this is Sam topic we.

We continue to be focused on executing the business plan and growing our income.

And as far as stock price typically.

What I've seen historically.

And the stock market in general.

[laughter] stockpile those earnings.

So.

We're focused on execution of the business plan as a company.

Yeah.

I hope that answers your question.

Keep on doing what we're doing I guess.

Thank you.

Thank you once again, ladies and gentlemen, if you'd like to ask a question. Please press star one on your telephone keypad.

It appears there are no further questions at this time do you have any closing comments.

Thank you operator.

Thank you everybody for joining today's call.

See you on the next call.

Thank you ladies and gentlemen. This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.