 Revenue Increased 44 to 7.7M Gross Profits Increased 85 to 1.5M Cash at end of Quarter of 17.7M Shareholder Equity at end of Quarter of 32.2M Adjusted EBITDA of 0.6M and increase of 1.4M to 0.06 Per Share Adjusted Net Income of 0.2M and increase of 1.3M to 0.02 Per ShareAll financial comparisons stated below are versus Q1 2020, unless otherwise notedPLANTATION, Fla., Aug. 14, 2020 GLOBE NEWSWIRE -- LMP Automotive Holdings, Inc. NASDAQ:LMPX 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 first quarter 2020 financial results for the period ended June 30, 2020. As previously announced, Management will hold a conference call at 5:30 p.m. ET to review and discuss the Companys business and results. Summary of Q2 2020 Results All financial comparisons stated below are versus Q1 2020, unless otherwise noted Revenue totaled 7.716 million, an increase of 44; Total gross profit was 1,521 million, an increase of 85; Gross profit margin was 19.7, an increase of 85; Net income was 216 thousand, an increase of 1.936 million to .02 per share based on 9.92 million shares issued and outstanding; Net Income margin was 2.8, an increase from 32.2; Cash, shareholder equity, and current shares outstanding at the end of the quarter was 17,650,438, 32,203,868, and 9,924,506, respectively; Adjusted EBITDA1 was 625 thousand, an increase of 1.396 million to 0.06 per share; Adjusted EBITDA1 margin was 8.1, an increase from 14.4 ; Adjusted net income was 242 thousand, and 0.02 per share; Adjusted net income margin was 3.1; Sam Tawfik, the Companys Chairman and Chief Executive Officer commented, The strong sequential improvements throughout the quarter, coupled with our responsiveness to the current environment, led us to the highest quarterly revenue and earnings per share in our history. This record performance illustrates the immense opportunity that exists within our industry that we are exploiting through continued growth and the activation of our e-commerce sales, subscription, and dealership acquisition strategy. The way the team handled the dynamic and difficult environment is a testament to what the future can bring...we have only just begun and are extremely proud of our team, Mr. Tawfik added, In July, we announced an agreement to purchase our first Franchise Dealership located in the Southeast region of the United States. We are seeing a robust acquisition market as we continue to build our pipeline of prospective dealership acquisitions and intend accelerating our acquisition strategy moving forward. Looking forward, we are as optimistic as ever and focused on our next-generation of innovation and growth as we roll-out e-commerce home delivery, site-to-store, and ship-from-store delivery strategies for our customers and demonstrate the value of our e-commerce hybrid model at the growing list of auto dealerships we intend to acquire.Tawfik concluded, At LMP, we intend to demonstrate rapid, efficient, and profitable expansion in the online-centric economy. LMP is focused on acquiring dealer groups to create concentrated clusters of dealerships to derive maximum SGA efficiency while expanding consumer product and delivery optionality. At the same time, we plan on maintaining each dealerships local brand recognition and online presence while simultaneously aggregating the dealerships new and used inventory on lmpmotors.com. By leveraging our access to acquired dealership inventories we can create one of the largest and most diverse online stores, providing consumers multiple vehicle and ownership. We plan to grow revenues and earnings of dealerships that we acquire by adding e-commerce and subscription options for their customers as well as tech enabling them. We believe this combined approach will produce continued revenue and earnings growth for us and our shareholders.Second Quarter 2020 Financial Results Discussion All financial comparisons stated below are versus Q1 2020, unless otherwise notedTotal revenue in the second quarter of 2020 increased 44 to 7.716 million, compared to 5.350 million in the first quarter of 2020. The growth in sequential revenue in the second 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 second quarter of 2020 increased 85 to 1.521 million, compared to 820,428, in the first quarter of 2020. The growth in sequential gross profits was driven by the gross margins recognized on sales-type lease contracts and increased gross margins on vehicle sales revenues.The Companys SGA expenses were 675,135 during the three-month period ended June 30, 2020, a decrease of 1,025,481 versus 1,700,616 during the three-month period ended March 31, 2020. The decrease is mainly due to expenses related to payroll of approximately 596,000, travel costs of approximately 202,000, contingencies of approximately 111,000, outside services of approximately 81,000 and administrative expenses approximately 35,000 associated with the Companys follow-on public offering and asset purchase in February 2020.Acquisition, consulting, and legal expenses were 280,650 during the three months ended June 30, 2020, as compared to 398,270 during the previous three-month period ended March 31, 2020. The decrease in expenses in the second quarter is mainly due to costs associated with prospective acquisition due diligence and the Companys follow on offering in February 2020.Net income in the second quarter of 2020 totaled 216,102, or a profit of 0.02 per share, compared to a net loss of 1,720,188, or a loss of 0.18 per share, in the first quarter of 2020. Total shares outstanding as of June 30, 2020 were 9,924,506, versus 9,326,054 on March 31, 2020.Cash totaled 17,650,438 at June 30, 2020. This represented a decrease of 372,840 from 18,023,278 at March 31, 2020. The decrease was primarily the result of vehicle purchases.Additional Second Quarter 2020 Highlights All financial comparisons stated below are versus Q1 2020, unless otherwise noted.Q2 2020 GAAP Results Revenue of 7,715,764, an increase of 2,366,051 as compared to Q1 2020; Subscription fees revenue of 505,931, as compared to 573,722 in Q1 2020; Total gross profit of 1,520,773, an improvement of 700,345 as compared to Q1 2020; Net income of 216,102, an increase of 1,936,290 as compared to Q1 2020; Net automotive inventory was 11,505,588 at the close of the second quarter of 2020; Net income per share of 0.02, based on weighted average shares of common stock outstanding of 9.9 million shares; Shares of common stock outstanding at the end of the quarter was 9,924,506 shares; and Stockholder equity at the end of the year was 32.2 million, an increase of 182 thousand from Q1 2020.Q2 2020 Non-GAAP Results All financial comparisons stated below are versus Q1 2020, unless otherwise noted. Adjusted EBITDA2 was 625,117, an increase of 1,396,106 as compared to Q1 2020; Adjusted Net Income was 241,695, an increase of 1,261,639 as compared to Q1 2020; Subscription Leasing margin1 decreased from 91.9 to 82.5 as compared to Q1 2020; a decrease of 24.4; Vehicle Sales Margins1 increased from 5.2 to 13.8 as compared to Q1 2020, an increase of 301.4.2020 OutlookSalesLMP Management identified a sales rebound in April, which continued to improve throughout the quarter. Management also witnessed this sales strength continued in July through the first part of August.LMP believes COVID-19 has caused a re-evaluation of shopping behavior. Many people who previously would not have considered buying a car online are giving it a second thought. In a recent CarGurus survey, 60 of respondents said they were open to buying a car online vs. 32 before. LMP believes this shift began a while ago and is here to stay.E-commerceWe expect to launch our subscription e-commerce mobile app available at the Apple App Store and Google Play store, along with our next generation e-commerce website this quarter. We expect this to enhance our customer experience, as well as onboarding and processing customer orders quicker, which we hope will result in an increase in future sales.We believe LMPs subscription and e-commerce technology overlaid at dealerships we intend to acquire will continue to demonstrate the value of our hybrid model of home delivery, site-to-store, and ship-from-store.AcquisitionsWe are seeing a robust acquisition market as we continue to build our pipeline of prospective dealership acquisitions and intend on accelerating our acquisition strategy moving forward, as well as integrating the inventory of our prospective acquisition targets to our main lmpmotors.com online store and mobile app.Conference Call Management will host an investor conference call at 5:30 p.m. ET on Friday, August 14, 2020 to discuss the Companys Second Quarter 2020 Financial Results and conclude with QA from participants. All interested parties can join the call by dialing 855 327-6837 or 631 891-4304. A webcast of the call may be accessed at: archived webcast of the conference call will be accessible from the Investor Relations section of the companys website, telephonic replay of the conference call will be available through Friday, August 28, 2020 by dialing 844 512-2921 or 412 317-6671 and entering passcode 10010651. 