RumbleOn Reports Fourth Quarter and Full Year 2023 Financial Results & Presents Vision 2026 Strategic Plan
- Successful $100 million rights offering and $50 million debt repayment in Q4 2023.
- Total revenue of $311.1 million for Q4, down 6.2% from the prior year.
- Introduction of 3-year operating plan 'Vision 2026' targeting revenue over $1.7 billion and annual Adjusted EBITDA exceeding $150 million.
- Withdrawal of prior guidance for 2024 to focus on executing Vision 2026 plan for future growth.
- Total Gross Profit of $71.2 million for Q4 decreased by $21.2 million from the prior year.
- Adjusted EBITDA was $3.1 million for Q4, compared to $19.7 million in Q4 2022.
- Total available liquidity of $212.6 million as of December 31, 2023.
- Total revenue decline of 6.2% for Q4 compared to the prior year.
- Loss from Continuing Operations of $168.4 million for Q4 with diluted loss per share of $7.81.
- Adjusted EBITDA decreased to $3.1 million for Q4 from $19.7 million in Q4 2022.
- Total Gross Margin decreased to 22.9% for Q4 from 27.9% in the prior year.
- Total company gross profit decreased by 18.5% for the year compared to 2022.
Insights
The financial performance of RumbleOn, Inc. reflects a contraction in revenues and a significant decline in gross profit and Adjusted EBITDA year-over-year. The reported decrease in revenue by 6.2% and in gross profit by 18.5% for the full year, coupled with a reduction in gross margin from 30.3% to 26.3%, suggests a challenging operating environment. A key factor in the reduced gross profit is the $12.6 million pre-owned inventory adjustment, indicating prior purchases at premium prices during supply constraints which have since been revalued to align with normalized market conditions.
The company's strategic moves to pay down $50 million in debt during the quarter and a total of $111.7 million for the year are positive steps towards improving the balance sheet. However, the loss from continuing operations of $214.4 million for the year raises concerns about the company's profitability and operational efficiency. The withdrawal of the annual guidance for 2024 and shift towards a longer-term 'Vision 2026' plan may reflect management's focus on sustainable growth but also introduces uncertainty about near-term performance expectations.
RumbleOn's performance within the Powersports market indicates a decline in demand for pre-owned units, as evidenced by the 5.8% decrease in total Powersport Vehicle Retail Sales compared to the previous year. This trend could be indicative of broader market dynamics, such as a return to pre-pandemic consumer behavior or increased competition. The company's ability to manage inventory and adjust to these market shifts, as seen with the inventory write-down, is crucial for maintaining competitiveness.
Furthermore, the introduction of the 'Vision 2026' operating plan suggests a strategic pivot towards long-term growth and operational efficiency. The plan's goals, including an annual revenue target of $1.7 billion and Adjusted EBITDA of $150 million, set ambitious benchmarks for the company. Investors may find the cessation of annual guidance in favor of this longer-term plan both a potential source of optimism and a cause for caution due to the inherent unpredictability of long-term forecasts.
From a legal and regulatory standpoint, RumbleOn's financial reporting and the subsequent adjustments, such as the goodwill and franchise rights impairment charge and the pre-owned inventory write-down, demonstrate compliance with accounting standards that require assets to be reported at no more than their recoverable amount. The transparency in reporting these non-cash impairments and adjustments is critical for maintaining investor trust and fulfilling disclosure obligations. Additionally, the successful completion of a $100 million rights offering indicates the company's ability to raise capital in compliance with securities regulations, which is a positive sign for its capital structure and liquidity.
Raised
Paid Down
FOURTH QUARTER AND FULL YEAR 2023 HIGHLIGHTS
-
Total Revenue was
$311.1 million 6.2% from the prior year fourth quarter. For the year, revenue decreased6.3% to$1.36 6 billion -
Total Powersport Vehicle Retail Sales were down
5.8% compared to the prior year fourth quarter, with a total of 15,596 units, including 11,293 new units and 4,303 pre-owned units sold in this year's fourth quarter. For the year, total Powersport vehicle retail sales were down3.2% with a total of 67,546 units comprised of 45,706 new units and 21,840 pre-owned units. -
Total Gross Profit of
$71.2 million $21.2 million $12.6 million 18.5% to$359.9 million -
Total Gross Margin of
22.9% for the fourth quarter compared to27.9% in the prior year fourth quarter. For the year, total gross margin was26.3% , down from30.3% in 2022. -
Total SG&A expenses for the fourth quarter declined
$14.4 million 15.9% , from the prior year fourth quarter and were down2.0% for 2023 compared to 2022. -
Loss from Continuing Operations of
$168.4 million $7.81 $214.4 million $12.09 -
Adjusted EBITDA was
$3.1 million $19.7 million $50.6 million $120.8 million -
Total available liquidity of
$212.6 million $58.9 million $18.1 million $135.6 million -
Paid down
$50 million $100 million $111.7 million $218.5 million
Management Commentary
Michael W. Kennedy, RumbleOn's Chief Executive Officer stated, “During the quarter, we were able to accomplish several capital and balance sheet initiatives that put us in a favorable position to start 2024, including successfully completing a
Kennedy continued, “Today we are introducing our 3-year operating plan called Vision 2026, which is the result of the work by our team over the last few months. We expect the following to be achieved by calendar year 2026, while maintaining a healthy balance sheet within our target ratio of 1.5x to 2.5x net debt/Adjusted EBITDA:
-
Annual revenue in excess of
$1.7 billion -
Annual Adjusted EBITDA of greater than
$150 million -
Annual Adjusted Free Cash Flow of
$90 million
While we believe that the prior Adjusted EBITDA guidance of
FOURTH QUARTER 2023 — TOTAL COMPANY RESULTS
Reconciliation of GAAP to non-GAAP financial measures are provided in accompanying financial schedules.
Unless otherwise noted, all comparisons in the narrative are fourth quarter of 2023, as compared to fourth quarter of 2022.
|
(Unaudited) |
||||||||||
$ in millions except per share amounts |
Three Months Ended December 31 |
||||||||||
|
2023 |
|
2022 |
|
Change |
||||||
Total Powersport Unit Sales (#) - includes wholesale |
|
17,591 |
|
|
|
17,550 |
|
|
0.2 |
% |
|
|
|
|
|
|
|
||||||
Total Revenue |
$ |
311.1 |
|
|
$ |
331.6 |
|
|
(6.2 |
)% |
|
Gross Profit |
|
71.2 |
|
|
|
92.4 |
|
|
(22.9 |
)% |
|
Gross Margin |
|
22.9 |
% |
|
|
27.9 |
% |
|
(500) bps |
||
|
|
|
|
|
|
||||||
Income (loss) from continuing operations |
$ |
(168.4 |
) |
|
$ |
(260.4 |
) |
|
35.3 |
% |
|
Diluted Earnings (Loss) per Share from Continuing Operations |
$ |
(7.81 |
) |
|
$ |
(16.11 |
) |
|
51.5 |
% |
|
|
|
|
|
|
|
||||||
Non-GAAP Measure: |
|
|
|
|
|
||||||
Adjusted EBITDA |
$ |
3.1 |
|
|
$ |
19.7 |
|
|
(84.3 |
)% |
|
Total Powersport Units Sold of 17,591 increased
Total Revenue of
Total Gross Profit of
Operating Expenses were
Loss from Continuing Operations was
Adjusted EBITDA was
Cash as of December 31, 2023, including restricted cash, was approximately
Total Available Liquidity, defined as cash and cash equivalents, including restricted cash, plus availability under Powersports inventory financing credit facilities totaled approximately
Cash Flow used in Operating Activities was
Weighted Average Diluted Shares of Class B common stock outstanding were 21,563,330 for the fourth quarter and 17,740,525 for the year. As of December 31, 2023, RumbleOn had 35,071,955 total shares of Class B common stock, reflecting an additional 18,181,818 shares issued under the rights offering, and 50,000 shares of Class A common stock outstanding.
Fourth Quarter 2023
Unless otherwise noted, all comparisons in the narrative are fourth quarter of 2023, as compared to fourth quarter of 2022.
Powersports Segment
|
(Unaudited) |
|||||||||
$ in millions except per unit |
Three Months Ended December 31 |
|||||||||
|
2023 |
|
2022 |
|
Change |
|||||
Units Sold (#) |
|
|
|
|
|
|||||
New |
|
11,293 |
|
|
|
10,633 |
|
6.2 |
% |
|
Pre-owned (includes wholesale) |
|
6,298 |
|
|
|
6,917 |
|
(8.9 |
)% |
|
Total Powersports Units Sold |
|
17,591 |
|
|
|
17,550 |
|
0.2 |
% |
|
|
|
|
|
|
|
|||||
Revenue |
|
|
|
|
|
|||||
New |
$ |
157.0 |
|
|
$ |
149.8 |
|
4.8 |
% |
|
Pre-owned |
|
56.3 |
|
|
|
77.7 |
|
(27.5 |
)% |
|
Finance & Insurance, net |
|
27.4 |
|
|
|
27.6 |
|
(0.7 |
)% |
|
Parts, Services, and Accessories |
|
57.6 |
|
|
|
65.3 |
|
(11.8 |
)% |
|
Total Powersports Revenue |
$ |
298.3 |
|
|
$ |
320.4 |
|
(6.9 |
)% |
|
|
|
|
|
|
|
|||||
Gross Profit |
|
|
|
|
|
|||||
New |
$ |
20.6 |
|
|
$ |
25.3 |
|
(18.6 |
)% |
|
Pre-owned |
|
(5.8 |
) |
|
|
10.5 |
|
(155.2 |
)% |
|
Finance & Insurance, net |
|
27.4 |
|
|
|
27.6 |
|
(0.7 |
)% |
|
Parts, Services, and Accessories |
|
25.6 |
|
|
|
26.4 |
|
(3.0 |
)% |
|
Total Powersports Gross Profit |
$ |
67.8 |
|
|
$ |
89.8 |
|
(24.5 |
)% |
|
Powersports GPU1 |
$ |
4,350 |
|
|
$ |
5,422 |
|
(19.8 |
)% |
|
New Powersports Revenue increased
New Powersports Gross Profit declined
Pre-owned Powersports Units Sold, which includes pre-owned retail and wholesale Powersports Units, declined
Pre-owned Powersports Revenue declined
Powersports GPU was
Vehicle Logistics Segment
|
(Unaudited) |
||||||||
$ in millions |
Three-Months Ended December 31 |
||||||||
|
2023 |
|
2022 |
|
Change |
||||
Vehicles Transported (#) |
|
21,599 |
|
|
17,840 |
|
21.1 |
% |
|
Vehicle Logistics Revenue |
$ |
12.9 |
|
$ |
11.2 |
|
15.2 |
% |
|
Vehicle Logistics Gross Profit |
|
3.4 |
|
|
2.7 |
|
25.9 |
% |
|
Revenue from Vehicle Logistics was up
Gross profit for this business was up
CONFERENCE CALL AND WEBCAST DETAILS
RumbleOn will host a conference call on March 14, 2024 at 7:00 a.m. Central Time (8:00 a.m. Eastern Time) to discuss its fourth quarter 2023 results. To participate in the call, please dial 1-877-407-9716 (or 1-201-493-6779 for callers outside of
ABOUT RUMBLEON
RumbleOn, Inc. (NASDAQ: RMBL), operates through two operating segments: the RideNow Powersports dealership group and Wholesale Express, LLC, an asset-light transportation services provider focused on the automotive industry. RideNow Powersports is the largest powersports retail group in
To learn more, please visit us online at https://www.rumbleon.com.
1 Calculated as total powersports gross profit divided by new and used retail powersports units sold.
Cautionary Note on Forward-Looking Statements
This press release may contain “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995, which statements may be identified by words such as “expects,” “plans,” “projects,” “will,” “may,” “anticipates,” “believes,” “should,” “intends,” “estimates,” and other words of similar meaning. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed under the heading “Forward-Looking Statements” and “Risk Factors” in the Company's SEC filings, as may be updated and amended from time to time. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Other
As disclosed in a Form 12b-25 filed today, the Company is unable to file its Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”) by the prescribed due date. The Company's management is continuing to evaluate the effectiveness of certain internal controls over financial reporting. Management has identified certain deficiencies, but the classification of these deficiencies has not been conclusively determined. The Company does not expect that the final determination will impact the financial information reported in the press release.
The Company has performed additional analyses and procedures that have led management to conclude that the financial information included in this press release fairly presents, in all material respects, the Company's financial condition and results of operations as of the end of and for the quarterly period and year ended December 31, 2023. The Company expects that the 2023 Form 10-K, along with the audited financial statements for the year ended December 31, 2023, will be filed within the 15-day extension period provided by Rule 12b-25.
Use of Non-GAAP Financial Measures
As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this release.
Adjusted EBITDA, non-vehicle net debt, and Adjusted Free Cash Flow are non-GAAP financial measures and should not be considered as alternatives to operating income or net income as a measure of operating performance or cash flows or as a measure of liquidity. Non-GAAP financial measures are not necessarily calculated the same way by different companies and should not be considered a substitute for or superior to
We define Adjusted EBITDA as net income (loss) adjusted to add back interest expense, depreciation and amortization, the impact of income taxes, discontinued operations, non-cash stock-based compensation costs, the non-cash impairment of goodwill and franchise rights, transaction costs, certain litigation expenses not associated with our ongoing operations, and other non-recurring costs and credits, such as the gain on the sale of a dealership, insurance proceeds and costs attributable to an abandoned project, as such we do not consider such recoveries, charges and expenses to be a part of our core business operations, and they not necessarily an indicator of ongoing, future company performance.
Adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business. We present Adjusted EBITDA because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe it is helpful in highlighting trends in our operating results, because it excludes, among other things, certain results of decisions that are outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure and capital investments.
We define non-vehicle net debt as the principal balance of our term debt, convertible notes, and finance portfolio line of credit, not inclusive of reductions for debt discount and unamortized issuance costs, less unrestricted cash. We present non-vehicle net debt because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry.
We define Adjusted Free Cash Flow as cash flows from operating activities plus cash flows from investing activities, excluding cash flows used or received in acquisitions or divestitures.
With respect to our 2026 Adjusted EBITDA and Adjusted Free Cash Flow targets, a reconciliation of these non-GAAP measures to the corresponding GAAP measures is not available without unreasonable effort due to the complexity of the reconciling items that we exclude from the non-GAAP measure or the variables going into the calculation of operating cash flows.
RumbleOn, Inc. Condensed Consolidated Statements of Operations (Unaudited) (in millions, except per share amounts) |
||||||||||||||||
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
Revenue: |
|
|
|
|
|
|
|
|||||||||
Powersports vehicles |
$ |
213.2 |
|
|
$ |
227.5 |
|
|
$ |
951.4 |
|
|
$ |
1,033.9 |
|
|
Parts, service and accessories |
|
57.6 |
|
|
|
65.3 |
|
|
|
241.8 |
|
|
|
247.6 |
|
|
Finance and insurance, net |
|
27.4 |
|
|
|
27.6 |
|
|
|
117.0 |
|
|
|
123.4 |
|
|
Vehicle logistics |
|
12.9 |
|
|
|
11.2 |
|
|
|
56.2 |
|
|
|
54.0 |
|
|
Total revenue |
|
311.1 |
|
|
|
331.6 |
|
|
|
1,366.4 |
|
|
|
1,458.9 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|||||||||
Powersports vehicles |
|
198.4 |
|
|
|
191.9 |
|
|
|
832.5 |
|
|
|
839.7 |
|
|
Parts, service and accessories |
|
32.0 |
|
|
|
38.9 |
|
|
|
131.5 |
|
|
|
135.3 |
|
|
Vehicle logistics |
|
9.5 |
|
|
|
8.4 |
|
|
|
42.5 |
|
|
|
42.2 |
|
|
Total cost of revenue |
|
239.9 |
|
|
|
239.2 |
|
|
|
1,006.5 |
|
|
|
1,017.2 |
|
|
Gross profit |
|
71.2 |
|
|
|
92.4 |
|
|
|
359.9 |
|
|
|
441.7 |
|
|
Selling, general and administrative |
|
75.7 |
|
|
|
90.1 |
|
|
|
347.3 |
|
|
|
354.5 |
|
|
Impairment of goodwill and franchise rights |
|
60.1 |
|
|
|
324.3 |
|
|
|
60.1 |
|
|
|
324.3 |
|
|
Depreciation and amortization |
|
4.8 |
|
|
|
6.1 |
|
|
|
22.0 |
|
|
|
23.0 |
|
|
Operating income (loss) |
|
(69.4 |
) |
|
|
(328.1 |
) |
|
|
(69.5 |
) |
|
|
(260.1 |
) |
|
Non-operating income (expense): |
|
|
|
|
|
|
|
|||||||||
Interest expense |
|
(21.4 |
) |
|
|
(16.5 |
) |
|
|
(77.2 |
) |
|
|
(52.1 |
) |
|
Other income (expense) |
|
(8.6 |
) |
|
|
4.0 |
|
|
|
(8.4 |
) |
|
|
4.2 |
|
|
PPP loan forgiveness |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.5 |
|
|
Total non-operating expense |
|
(30.0 |
) |
|
|
(12.5 |
) |
|
|
(85.6 |
) |
|
|
(45.4 |
) |
|
Loss from continuing operations before income taxes |
|
(99.4 |
) |
|
|
(340.6 |
) |
|
|
(155.1 |
) |
|
|
(305.5 |
) |
|
Income tax expense (benefit) |
|
69.0 |
|
|
|
(80.2 |
) |
|
|
59.3 |
|
|
|
(72.0 |
) |
|
Loss from continuing operations |
|
(168.4 |
) |
|
|
(260.4 |
) |
|
|
(214.4 |
) |
|
|
(233.5 |
) |
|
Loss from discontinued operations, net |
|
(0.1 |
) |
|
|
(27.2 |
) |
|
|
(1.1 |
) |
|
|
(28.0 |
) |
|
Net loss |
$ |
(168.5 |
) |
|
$ |
(287.6 |
) |
|
$ |
(215.5 |
) |
|
$ |
(261.5 |
) |
|
Weighted average common shares outstanding |
|
21.56 |
|
|
|
16.16 |
|
|
|
17.74 |
|
|
|
15.87 |
|
|
Diluted loss per share from continuing operations |
$ |
(7.81 |
) |
|
$ |
(16.11 |
) |
|
$ |
(12.09 |
) |
|
|
(14.71 |
) |
|
RumbleOn, Inc. Condensed Consolidated Balance Sheets (Unaudited) ($ in millions) |
||||||||
|
|
December 31, 2023 |
|
December 31, 2022 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash |
|
$ |
58.9 |
|
|
$ |
46.8 |
|
Restricted cash |
|
|
18.1 |
|
|
|
10.0 |
|
Accounts receivable, net |
|
|
50.3 |
|
|
|
28.0 |
|
Loans receivable held for sale |
|
|
— |
|
|
|
33.7 |
|
Inventory |
|
|
347.5 |
|
|
|
323.5 |
|
Prepaid expense and other current assets |
|
|
6.0 |
|
|
|
7.4 |
|
Current assets of discontinued operations |
|
|
— |
|
|
|
11.4 |
|
Total current assets |
|
|
480.8 |
|
|
|
460.8 |
|
Property and equipment, net |
|
|
76.8 |
|
|
|
76.1 |
|
Right-of-use assets |
|
|
163.9 |
|
|
|
161.8 |
|
Goodwill |
|
|
0.8 |
|
|
|
21.1 |
|
Intangible assets, net |
|
|
202.5 |
|
|
|
247.4 |
|
Deferred tax assets |
|
|
— |
|
|
|
58.1 |
|
Other assets |
|
|
1.5 |
|
|
|
1.9 |
|
Total assets |
|
|
926.3 |
|
|
|
1,027.2 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable and other current liabilities |
|
|
67.8 |
|
|
|
79.5 |
|
Vehicle floor plan note payable |
|
|
291.3 |
|
|
|
220.1 |
|
Current portion of long-term debt |
|
|
35.6 |
|
|
|
3.7 |
|
Current liabilities of discontinued operations |
|
|
0.3 |
|
|
|
8.4 |
|
Total current liabilities |
|
|
395.0 |
|
|
|
311.7 |
|
Long-term liabilities: |
|
|
|
|
||||
Long-term debt |
|
|
286.7 |
|
|
|
374.4 |
|
Operating lease liabilities |
|
|
134.1 |
|
|
|
126.7 |
|
Deferred taxes |
|
|
0.4 |
|
|
|
— |
|
Other long-term liabilities |
|
|
4.5 |
|
|
|
8.4 |
|
Total long-term liabilities |
|
|
425.7 |
|
|
|
509.5 |
|
Total liabilities |
|
|
820.7 |
|
|
|
821.2 |
|
Stockholders’ equity: |
|
|
|
|
||||
Class A common stock |
|
|
— |
|
|
|
— |
|
Class B common stock |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
701.0 |
|
|
|
585.9 |
|
Accumulated deficit |
|
|
(591.1 |
) |
|
|
(375.6 |
) |
Treasury stock |
|
|
(4.3 |
) |
|
|
(4.3 |
) |
Total stockholders’ equity |
|
|
105.6 |
|
|
|
206.0 |
|
Total liabilities and stockholders’ equity |
|
$ |
926.3 |
|
|
$ |
1,027.2 |
|
RumbleOn, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) ($ in Millions) |
||||||||
|
2023 |
|
2022 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|||||
Net income (loss) |
$ |
(215.5 |
) |
|
$ |
(261.5 |
) |
|
Loss from discontinued operations |
|
(1.1 |
) |
|
|
(28.0 |
) |
|
Income (loss) from continuing operations |
|
(214.4 |
) |
|
|
(233.5 |
) |
|
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used in) operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
22.0 |
|
|
|
23.0 |
|
|
Amortization of debt discount and deferred financing costs |
|
10.4 |
|
|
|
6.4 |
|
|
Inventory write-down |
|
12.6 |
|
|
|
— |
|
|
Forgiveness of PPP loan |
|
— |
|
|
|
(2.5 |
) |
|
Stock based compensation expense |
|
12.0 |
|
|
|
9.4 |
|
|
Impairment loss on goodwill and franchise rights |
|
60.1 |
|
|
|
324.3 |
|
|
Deferred taxes |
|
58.5 |
|
|
|
(76.7 |
) |
|
Valuation allowance charge for loans receivable held for sale |
|
7.6 |
|
|
|
— |
|
|
Originations of loan receivables, net of principal payments received |
|
6.3 |
|
|
|
(27.9 |
) |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|||||
Accounts receivable |
|
(2.4 |
) |
|
|
(4.6 |
) |
|
Inventory |
|
(31.7 |
) |
|
|
(120.4 |
) |
|
Prepaid expenses and other current assets |
|
1.4 |
|
|
|
(0.4 |
) |
|
Other assets |
|
0.3 |
|
|
|
0.3 |
|
|
Other liabilities |
|
(3.7 |
) |
|
|
1.6 |
|
|
Accounts payable and accrued liabilities |
|
(4.4 |
) |
|
|
(6.0 |
) |
|
Floor plan trade note borrowings |
|
26.5 |
|
|
|
60.3 |
|
|
Net cash used in operating activities of continuing operations |
|
(38.9 |
) |
|
|
(46.7 |
) |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|||||
Acquisitions, net of cash received |
|
(3.3 |
) |
|
|
(69.6 |
) |
|
Purchase of property and equipment |
|
(13.7 |
) |
|
|
(5.6 |
) |
|
Technology development |
|
(2.1 |
) |
|
|
(7.0 |
) |
|
Net cash used in investing activities of continuing operations |
|
(19.1 |
) |
|
|
(82.2 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|||||
Net proceeds from common stock rights offering |
|
98.4 |
|
|
|
— |
|
|
Proceeds from sale-leaseback transaction |
|
50.0 |
|
|
|
— |
|
|
Proceeds from debt issuances |
|
2.2 |
|
|
|
84.5 |
|
|
Repayment of debt, including finance lease |
|
(111.7 |
) |
|
|
(51.2 |
) |
|
Net borrowings from non-trade floor plans |
|
42.5 |
|
|
|
77.9 |
|
|
Proceeds from RumbleOn Finance (“ROF”) credit facility |
|
— |
|
|
|
25.0 |
|
|
Shares redeemed for employee tax obligations |
|
(1.4 |
) |
|
|
— |
|
|
Debt issuance costs |
|
(1.8 |
) |
|
|
— |
|
|
Net cash provided by financing activities for continuing operations |
|
78.2 |
|
|
|
136.2 |
|
|
CASH FLOWS FROM DISCONTINUED OPERATIONS |
|
|
|
|||||
Net cash provided by operating activities of discontinued operations |
|
3.4 |
|
|
|
27.8 |
|
|
Net cash used in financing activities of discontinued operations |
|
(5.2 |
) |
|
|
(28.5 |
) |
|
Net cash used in discontinued operations |
|
(1.8 |
) |
|
|
(0.7 |
) |
|
NET CHANGE IN CASH |
|
18.4 |
|
|
|
6.6 |
|
|
Cash and restricted cash at beginning of period |
|
58.6 |
|
|
|
52.0 |
|
|
Cash and restricted cash at end of period |
$ |
77.0 |
|
|
$ |
58.6 |
|
|
RumbleOn, Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited) ($ in Millions) |
||||||||||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|
Dec 31, |
|||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
Net income (loss) |
$ |
(168.5 |
) |
|
$ |
(287.6 |
) |
|
$ |
(215.5 |
) |
|
$ |
(261.5 |
) |
|
Loss from discontinued operations, net |
|
(0.1 |
) |
|
|
(27.2 |
) |
|
|
(1.1 |
) |
|
|
(28.0 |
) |
|
Income (loss) from continuing operations, net |
|
(168.4 |
) |
|
|
(260.4 |
) |
|
|
(214.4 |
) |
|
|
(233.5 |
) |
|
Add back: |
|
|
|
|
|
|
|
|||||||||
Interest expense |
|
21.4 |
|
|
|
16.5 |
|
|
|
77.2 |
|
|
|
52.1 |
|
|
Depreciation and amortization |
|
4.8 |
|
|
|
6.1 |
|
|
|
22.0 |
|
|
|
23.0 |
|
|
Interest income and miscellaneous income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Income tax provision (benefit) |
|
69.0 |
|
|
|
(80.2 |
) |
|
|
59.3 |
|
|
|
(72.0 |
) |
|
EBITDA |
|
(73.2 |
) |
|
|
(318.0 |
) |
|
|
(55.9 |
) |
|
|
(230.4 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation expense |
|
1.1 |
|
|
|
2.1 |
|
|
|
12.0 |
|
|
|
9.4 |
|
|
Transaction costs for acquisitions(1) |
|
— |
|
|
|
0.4 |
|
|
|
— |
|
|
|
1.9 |
|
|
Purchase accounting related |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.2 |
|
|
Pre-owned vehicle inventory valuation adjustment(2) |
|
12.6 |
|
|
|
— |
|
|
|
12.6 |
|
|
|
— |
|
|
Lease expense associated with favorable related party leases in excess of contractual lease payments |
|
0.3 |
|
|
|
0.6 |
|
|
|
1.1 |
|
|
|
1.3 |
|
|
Charges related to proxy contest and reorganization of the Board of Directors(3) |
|
— |
|
|
|
— |
|
|
|
5.1 |
|
|
|
— |
|
|
Loss related to sale of RumbleOn receivables |
|
1.6 |
|
|
|
|
|
7.6 |
|
|
|
— |
|
|||
Impairment of goodwill and franchise rights |
|
60.1 |
|
|
|
324.3 |
|
|
|
60.1 |
|
|
|
324.3 |
|
|
Litigation settlement expenses(4) |
|
— |
|
|
|
8.4 |
|
|
|
0.1 |
|
|
|
8.4 |
|
|
PPP Loan forgiveness(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2.5 |
) |
|
Costs attributable to abandoned fulfillment center project(6) |
|
— |
|
|
|
2.1 |
|
|
|
— |
|
|
|
2.1 |
|
|
Personnel restructuring costs |
|
— |
|
|
|
— |
|
|
|
5.3 |
|
|
|
— |
|
|
Other non-recurring costs(7) |
|
0.6 |
|
|
|
3.6 |
|
|
|
2.7 |
|
|
|
10.0 |
|
|
Gain on sale of dealership |
|
— |
|
|
|
(3.9 |
) |
|
|
— |
|
|
|
(3.9 |
) |
|
Adjusted EBITDA |
$ |
3.1 |
|
|
$ |
19.7 |
|
|
$ |
50.6 |
|
|
$ |
120.8 |
|
|
(1) |
Transaction costs associated with the RideNow and Freedom Powersports acquisitions, which primarily include professional fees and third-party costs |
|
(2) |
Reflects write-down to net realizable value for pre-owned inventory purchased at elevated pandemic prices that are no longer supported. |
|
(3) |
Charges in 2023 related to the shareholder proposals for the Company's annual meeting of shareholders and costs related to the reorganization in 2023 of our Board of Directors |
|
(4) |
Charges associated with litigation outside of our ongoing operations |
|
(5) |
Forgiveness of the Paycheck Protection Program ("PPP") loan |
|
(6) |
Expenses attributable to a discontinued project in |
|
(7) |
Other non-recurring costs, which include one-time expenses incurred. In 2023, amounts primarily included integration costs and professional fees associated with acquisitions. Amounts in 2022 primarily included a death benefit to the estate of a former officer and director and various integration costs and professional fees associated with the Freedom Powersports and RideNow acquisitions, technology implementation and the establishment of the RumbleOn Finance secured loan facility. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240314492716/en/
Investor Relations Contact:
investors@rumbleon.com
Source: RumbleOn, Inc.
FAQ
How much revenue did RumbleOn generate in Q4 2023?
What was the change in Total Powersport Vehicle Retail Sales for the year 2023?
What is RumbleOn's 3-year operating plan called?
What was the Adjusted EBITDA for Q4 2023?
How much debt did RumbleOn pay down during the quarter?
