LMP Automotive (LMPX) 30 Jun 212021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. This is the conference operator. Welcome to the LMP Automotive Holdings, Inc.

First Quarter 2021 Financial Results Conference Call. All participants are in listen-only mode and the conference is being recorded. management, be by ask opportunity presentation questions. a there an will to After

be I’d not forward-looking everyone uncertainties. statements. Executive with considered LMP Any Chief plans the by to Officer. and to also may we and/or that beliefs, All like Before over facts constitute begin, goals, Tawfik, future statements I to and Mr. remind Holdings about call to Reform of statements ahead. like forward-looking financial are of risks management the historical the Mr. statements forward-looking expectations, statements. pertaining Litigation results contain now course, within turn Tawfik, expressed that statements And, the meaning or Securities Chairman of along go Automotive prospects Private operating Sam Act should statements XXXX. other forward-looking involve would call this please future

and today. Controller. adjusted and myself for Richard with respectively, you, $X.XX to afternoon our $XX you billion adjusted million XX share. in and Operating Officer; million EBITDA and million Corporate revenue or press exceeded [ph], joining operator, Robert our with EBITDA. our that announce along $X.X X pleased thank participants along outlook Bellaflores in call all, our our will earnings These million, results our March call on of call Chief was Senior good a and I'm Aldahan, provided Thank earnings first revenue be and quarter release to XX Today's

surpasses $XX From substantial release XXX our in million year, respectively. of expect half consolidated an $X.XX and XX of adjusted in in EBITDA annualized York XXX increase outlook per revenue run this expect million share acquisitions contracted which in the revenues share, XX% a per represents believe we rate well achieving $X.XX our announced to million, provided or to adjusted close combined, XX in adjusted previously March share EBITDA we're second of coming million to in our our respectively. XXX also run with we revenue EBITDA, or in press and of $XX $X.XX of months expect our We million, XX% of in way we expecting per EBITDA share, XX.X revenue revenue, and on adjusted be $XX EBITDA per per adjusted we $XXX our adjusted approximately XXXX are quarter, which approximately rate and New and On EBITDA. the goals adjusted million, annualized internal outlook. be EBITDA, second to million be the For basis, to to share, million

the Aldahan, I'll Chief to Operating Now our Richard pass Officer. call

call. and Thank you, for joining thanks to everyone Sam, this

get as their into thank team over now details, as the associates. totaling XXX like welcome members Before well dealer to and I I partners our would respective

peers. provide and I in combined impressive would We partners are many months. diversified are extremely effort into acquisition resilience stability rate of the XX These the along the come. translated results and talent our enthusiasm, an pleased has our achieving like metrics. public to that unique from which some our percentile over as the look metrics with and model in stronger and rankings to yet run We we strategy and is transformative The a more witnessing significant are organizations industry notable makes best of milestones compared with care of company. and forward degree to financial us several the future, our partnership also more in past a our performance business to upper the the believe

$XXX an unique Gross XX.X%. profit annualized translates views. margin is to users increase achieved over basis. XX% organic This Our at on page in e-commerce has of and an million

of percentage Thanks X.X%, call. margins a as is for will vehicle again X% sales come. I best believe joining margin revenue EBITDA Operator? question-and-answer open yet of me, now to adjusted gross is the a call for session. the and at Our the

this [Operator we question-and-answer Instructions]. will At a be session. Thank conducting time, you.

Our from Securities. Truist Stephanie Please of is [ph] state first question question. Moore your

you is there's interest This Sam to my actually XQ on level, and guess but was [ph] public the congratulations M&A Hi. market, could stack a what in what's dealers, the and a guys in are Richard, and your one specifically at of been wondering at and on XX and the about looking seeing you're looking you're Good Joe of XH. across has what good I high looking guys the Stephanie. fairly in comments been I for brands next are keep sort particular out building some like as to active. portfolio, M&A XQ obviously, talk market XX and very if looking regions at you certainly what afternoon, going I good months? was going

you the at low Atlantic we become next given on multiple this the those East strategy changing the that that several much into headwind transactions cyclicality. And environment the in brands, any deal the and We're when believe years. see joining. seeing from solid normal, luxury of well didn't very simply LMP in that trade. Northeast, a regions typically, multiples. We imports that's Thank regions. amount don't just record lower Hi, Coast, may you from run get as demand believe year and volatile the tax year's Southeast domestic than last pent-up brands you be to as Mid more a a flow. Joe. Sam. as is execute for This focused is economic Texas, We the traditionally well that We're economy is to the hundred focusing get where Midwest brands, as in the several trade

being years. Given now, don't next absorbed the supply/demand scenario demand in for the industry the we several see the right

demand So it we obviating as stability call X as of margins the in dealerships. see the, well volatility and Tier

the that adding domestic that to and brands. we're heavily So focused on

a view to for of lot as it's brands them see environment. and of they cost where point EV you supply given and management Wall with decades, first efforts their well line reductions their then dramatically do time chain three You see that changed and their product the has are. the a the highs as Street And has following current making domestic from

in and that's getting comfortable that in very that equation on the that we're context. this forward answers return strategy I imports solid we're the the regions your going on So cost believe question, those focused remains we're Hope domestics and mentioned. and I lower best Joe? investment that just a

great partners up color. And was a the Richard, of following you quickly -- M&A, on the deal. liking that on Yes, structure comment made maybe then the dealer and just about

relates the was maybe what dealer partners? to sort having could with different I you mousetrap partners if sort of as that to you conversations so you And are wondering specifically dealer on point, talk kind it that of built of to the these bring

demand It's in one where partner fund see some lot dealer strategy. partners. being private companies. portfolio similar a to large want we're to very several seeing that of reasons, you're a strategy and remain our a the in So game stay similar of investing We strategy for operators and to dealerships

the efforts, when company, you and typically they turn us is the an a change XXX% come to it in watching game, their they operational don't costs, businesses because management see in operate get has view, of skin to hands. view our that partner better when From like get point operator the you they're that that. achieve So you

So seeing our flow we're and our model of peers. superior a believe is of because we model our lot to

thinking direct guys are I testing Got dealer were term? model about wondering products, level the high at kind color. about of the relates And popular it consumer OEM guys as the thinking to and question, network maybe it. what least was to That's of some helpful you long their you just for dealer space how last flagship maybe the

When the have about you're any the mass network dealer masses. based you distribution talk conflicting to in on remarks industry, going and

to as because view for the products the distribution. service we need Our of order in go sell do as better they're lack you a support need because sure manufacturers they fulfillment going consumer, the compensate And when fulfillment center, well dealership direct the to to I'm term, is, products. operator they

So we think that. forward dealership it to status. look We enhances

so much Great. for for the me. That's Thanks everything color.

Thank afternoon. have a you, great Joe, and

[ph], comes Please from Our Cohen question. shareholder. question next state your DJ

site? [ph]. JD entire been I've the regarding local on and any presence. Are e-commerce What is and figures. Web LMP seeing a cross the these an investor that Cohen the team, performance. since you lmpmotors.com specifically the team sites dealers is and beginning. Sam acquiring you're your congratulations This Hi. question between of pollenization My

and sales we call. regional and site low JD, joining fruit. you It's every part presence thank does question, It's own that their their presence the is Web our acquire the very and strategy absolutely We has that of for fact Great e-commerce hanging own and dealer do. fulfillment.

up organic do we dealership Web forwards you the site that site, net we you at car appropriate another the local what a you absolute to systems is to the cross can and interconnect you at to dealers’ a main dealership. push user versa. then advertising, the an if then without what that up there's site, inventory and because all end additions the see And purchasing lmpmotors.com, online if means it's resides originate There's vice simply then So main our come like don't lease automated and that pollenization. is and process inventory

and actually and scenario strategy. pollenization. intentional a was done we're We've advertising, doubled very dynamic organic users cross nearly it's So the January. since seeing no in That

a I JD great answers elements it’s in that. that e-commerce, your matters the question hope Cohen? So organic that of and question, really

It does. you. Thank

as well. you Thank

Please Our [ph], next question Samuel shareholder. Michael your from comes question. state

how shortage business? of Yes. of the vehicles just does with service today, I was this wondering affect the

to pass going Chief our I'm Officer. Operating Aldahan, to Richard question the

Could the You broke there, again? ask Michael. please question you up

[indiscernible] shortages affect in question for service cars now market does we're that of in seeing because My was, vehicles? with Yes. the general, how the

service realizing this revenue in the done. our these service as of be market dealerships, service And to our age, up more significantly shortage. we're to one improves due it every work is Actually, there's vehicles because that

Now are margins the service side? the decent on

I’m sorry, that say again?

side? on I said, margins service good your are the

in highest volume. the in, in service so is The margins had divisions. are parts Absolutely. they've and been We've increase an our the volume both

very much. you Thank

pleasure. My

Matt next your is Please Our shareholder. Horn from [ph], question state question.

Sam. Hi,

say First that. that a or I you actually I you say, surprised emailed person back It from. was want just getting for Thank the to lot. a I've forth you and was were of LMP of couple I says all, should answers and times

going really, as really, in last you it moving is that one XX big like noticed the shareholders. really on? only the was vehicles involved lot. you there's year was work And this cool out We scale? is factors your question, plan about makes and a listed And many idea. Sometimes us that of when first I appreciate of I thought that really head so, on My a out? one what's a currently and So a so you kind rolling just got and your only morning, working wondering, people vehicles of with it larger plan. are the shows think go kind early subscription so that scratch of on that lot XX when if

for correct. and And question. appreciate Hi, the you you And Matt, morning. weeks. you the thank early are I the long long in work hours asked and We questions

As far contributor, as metrics, I'm a income. low And business, subscriptions, digits lease a the our subscriptions, single the sorry, -- flexible we've which is industry has become transformed significantly. most especially the

cut recent secondly, as even that real fleet. operators Because the actually they've are There's dealership are in huge shortages pausing industry, franchise where companies, supplying well of for the no seeing tailwind a because good the capital. better, So material dealership as And down the the top better -- at not the five a the as any operations, in events it's we're the margins reason. we're the way, traditional return so actually manufacturers the percentages invested moment on operations, the well. given rental in choice

roll and anytime about trade on there's a it's invested return in returns. choice just not into it we potentially great the out but up subscriptions just the invest When dealerships. those around. a this sooner significantly dollars will believe assets real just a we dollars -- million those subscriptions much is if we buying and and that's additional constraints greater when normalizes, going the scale. are really XX reissuing it the inventory to We over year The So pause $XX next all no does wider of then returns a greater. be subscription. right and freeing next, And not get dealership not months, supply intend it's better subscription provide by now, investment But because on to

So your hope I answers that question.

it Yes, does.

that, we're we've that. and as switched gears away So sense. revenue making revenue. losing long appreciate we're makes still not I I kind guess as from of That

carrying -- locations Motors? see Do a you these acquisitions, name rebrand LMP the it understand all where plan Another way question I they to real quick same doing to is you're you have already they're I that had. When if mind. ever don't they're the those

Not our the Web very are And in Right that, given Web It name they the But you by outlook. to Matt. not understand change simply, why the they it same name. not it cross our main the as generations. I of the now, pollinates most the it secondly, it see And -- of demand we're and And now with same can second don't may doesn't cars rooted group near exceeds be not that accretive. does dealerships that our so name acquiring in site, future, peer community for the quarter put that. from sense; do it's these to really supply do make some XXXX site. buy because does diluted well

so but So makes an it, XX XX diligence do some go don't upside it buy when [ph], the there believe and of are we to sense else, anywhere brand significant don't get consistency, you. And because that. Thank for no dealerships neighborhoods we sales driving are any having effect, the I years. these showrooms, call due They in generations Matt. through plans, from sitting up

what's statement. share, very appreciate tell are little I’d have the online question guess I understand I'm that. of The converse and you dark. would for groups don't in of a we we of what And about have is And bit a I more, I I and know really feel private that would I on. little invest I'm be careful thing with saying there's lot you, And been if lot of bit brand Fair little myself, share know you plans. you us a that. what lot -- probably they that. a I I it appreciate parts. of suggesting sure going a enough. more a kind about in to I kind some one think when on? us. lot idea But have what's the could, is company, more it's And definitely when to one something make difficult of you really going bit to give investors think more a us of for and maybe of And I'm just more that ambassador. comfortable this for going speak a big we know moving you, on it's last a what's do And you

Thank We going on. what's we Matt. inform public believe of the you,

just we the companies. public want. everybody press the see You nature Unfortunately, can't they in appease investing when It's clips. of

They unless just that’s the We do just are that you follow someone believe news XX. Fortune at bound XXX, like guidelines stuff; for because thing. Dow Fortune and don't by wants in we other presenting news moment. the XXXX, It doesn't immaterial the work simply same

in ambassador, press we in release brand and and releases. no our X-Ks news our Matt, So

your have what wanted It's but so forward I it. I hear, really I further Sam. look questions. appreciate much. you response, any I the I company you Thank with to not appreciate growing with to you. Thank do folks. don't do Well,

you very Thank Matt. much,

Instructions]. [Operator

Our Brett from shareholder. next Please is Rosen state question. your question [ph],

great a on Congratulations Sam. quarter. Hi,

see I the questions the shareholders, just had you manufacturing chain It you the supply two keep For obviously to manufacturers for or time. of the actually next like going so in year good up work. stresses? few some pressures of investors, a the it COVID the with are last private [ph] the answered original overcoming the Do seems

-- should for several in this Good Brett. question. mathematical place these a next you, the it's remain believe We years. remain dynamics should fact Thank that

pandemic. if use reason the purchases year simple an this of the automobile That XX% put For equation, you the would following year. say consumers be until their off during

GDP. sales of a So a increase capacity year the demand. The build you and the increase sales, over not three. the increase the automotive dollar In XX% does consumer in in multi-trillion will support XX% to XX% in have largest or not, in will is infrastructure manufacturing segment or nation's not a two in country,

support So going And if going users that be time. to XX%, to we to deferred there's naturally can't that's could looking won't may it. years build We're place it's see not for it's right dissipate, if several worth a any manufacturing Brett, it pent-up which fortunate great for and at vehicles out, their It's that that a and many they take equation, but to and building have just thing. not use in XX%, even demand the years. absorption, several this just you purchases, more the on just infrastructure although if the plant some, right is support have

you Great. very Thank much.

Thank you, Brett.

we this appears It time. at questions no have more

end question-and-answer turn remarks. have the I will of back the Sam We call the Tawfik now session. reached closing to over for

call. operator, and joining you you, Thank for thank everybody the

Looking your forward participation great Have a release. our to day. next on

This concludes conference. today's

your participation Thank may a your and at lines for disconnect evening. time. have this you You great