RumbleOn Reports Fourth Quarter and Full Year 2024 Financial Results
RumbleOn (NASDAQ: RMBL) has released its Q4 and full-year 2024 financial results, showing mixed performance amid macroeconomic challenges. Q4 2024 saw revenue decline 13.4% to $269.6 million, with a net loss of $56.4 million, improved from $168.5 million loss in Q4 2023. The company achieved positive Adjusted EBITDA of $2.2 million in Q4.
For full-year 2024, revenue decreased 11.5% to $1,209.2 million, with a net loss of $78.6 million, better than 2023's $215.5 million loss. Notable achievements include generating $99.4 million in operating cash flow, reducing inventory by $106.9 million, and cutting floor plan notes payable by $81.4 million.
The company strengthened its financial position by fully repaying $38.8 million of convertible notes, raising $10 million through a rights offering, and completing a $4.0 million sale-leaseback deal. RumbleOn ended 2024 with $85.3 million in unrestricted cash and $146.2 million available under powersports floor plan lines.
RumbleOn (NASDAQ: RMBL) ha pubblicato i risultati finanziari del Q4 e dell'intero anno 2024, mostrando una performance mista in mezzo a sfide macroeconomiche. Nel Q4 2024, i ricavi sono diminuiti del 13,4% a $269,6 milioni, con una perdita netta di $56,4 milioni, migliorata rispetto alla perdita di $168,5 milioni nel Q4 2023. L'azienda ha registrato un EBITDA rettificato positivo di $2,2 milioni nel Q4.
Per l'anno intero 2024, i ricavi sono diminuiti dell'11,5% a $1.209,2 milioni, con una perdita netta di $78,6 milioni, migliore rispetto alla perdita di $215,5 milioni del 2023. Tra i risultati notevoli ci sono la generazione di $99,4 milioni in flusso di cassa operativo, la riduzione dell'inventario di $106,9 milioni e il taglio dei debiti di piano di finanziamento di $81,4 milioni.
L'azienda ha rafforzato la sua posizione finanziaria ripagando completamente $38,8 milioni di note convertibili, raccogliendo $10 milioni tramite un'offerta di diritti e completando un'operazione di vendita-leaseback da $4,0 milioni. RumbleOn ha chiuso il 2024 con $85,3 milioni in contante non vincolato e $146,2 milioni disponibili sotto le linee di piano di finanziamento per veicoli sportivi.
RumbleOn (NASDAQ: RMBL) ha publicado sus resultados financieros del Q4 y del año completo 2024, mostrando un rendimiento mixto en medio de desafíos macroeconómicos. En el Q4 2024, los ingresos cayeron un 13,4% a $269,6 millones, con una pérdida neta de $56,4 millones, mejorando respecto a la pérdida de $168,5 millones en el Q4 2023. La compañía logró un EBITDA ajustado positivo de $2,2 millones en el Q4.
Para el año completo 2024, los ingresos disminuyeron un 11,5% a $1.209,2 millones, con una pérdida neta de $78,6 millones, mejor que la pérdida de $215,5 millones de 2023. Entre los logros notables se incluye la generación de $99,4 millones en flujo de caja operativo, la reducción del inventario en $106,9 millones y la reducción de las notas por pagar en el plan de financiamiento en $81,4 millones.
La compañía fortaleció su posición financiera al pagar completamente $38,8 millones de notas convertibles, recaudar $10 millones a través de una oferta de derechos y completar un acuerdo de venta y arrendamiento de $4,0 millones. RumbleOn terminó 2024 con $85,3 millones en efectivo no restringido y $146,2 millones disponibles bajo líneas de financiamiento para vehículos deportivos.
RumbleOn (NASDAQ: RMBL)은 2024년 4분기 및 연간 재무 결과를 발표했으며, 거시경제적 도전 속에서 혼합된 성과를 보였습니다. 2024년 4분기에는 수익이 13.4% 감소하여 2억 6,960만 달러에 이르렀고, 순손실은 5,640만 달러로, 2023년 4분기의 1억 6,850만 달러 손실보다 개선되었습니다. 회사는 4분기에 조정된 EBITDA가 220만 달러로 긍정적인 결과를 달성했습니다.
2024년 전체로는 수익이 11.5% 감소하여 12억 9,200만 달러에 이르렀고, 순손실은 7,860만 달러로, 2023년의 2억 1,550만 달러 손실보다 나아졌습니다. 주목할 만한 성과로는 9,940만 달러의 운영 현금 흐름을 생성하고, 재고를 1억 6,690만 달러 줄이며, 바닥 계획 지급어음을 8,140만 달러 감소시킨 것이 포함됩니다.
회사는 3,880만 달러의 전환사채를 전액 상환하고, 권리 공모를 통해 1,000만 달러를 모금하며, 400만 달러의 매각-임대백 거래를 완료하여 재무 건전성을 강화했습니다. RumbleOn은 2024년을 제한 없는 현금 8,530만 달러와 스포츠 차량 바닥 계획 라인에서 사용 가능한 1억 4,620만 달러와 함께 마감했습니다.
RumbleOn (NASDAQ: RMBL) a publié ses résultats financiers pour le 4ème trimestre et l'année complète 2024, montrant une performance mitigée face à des défis macroéconomiques. Le 4ème trimestre 2024 a vu les revenus diminuer de 13,4 % pour atteindre 269,6 millions de dollars, avec une perte nette de 56,4 millions de dollars, améliorée par rapport à une perte de 168,5 millions de dollars au 4ème trimestre 2023. L'entreprise a réalisé un EBITDA ajusté positif de 2,2 millions de dollars au 4ème trimestre.
Pour l'année complète 2024, les revenus ont diminué de 11,5 % pour atteindre 1,209.2 millions de dollars, avec une perte nette de 78,6 millions de dollars, meilleure que la perte de 215,5 millions de dollars en 2023. Parmi les réalisations notables, on peut citer la génération de 99,4 millions de dollars de flux de trésorerie opérationnel, la réduction des stocks de 106,9 millions de dollars et la diminution des dettes de plan de financement de 81,4 millions de dollars.
L'entreprise a renforcé sa position financière en remboursant intégralement 38,8 millions de dollars de billets convertibles, en levant 10 millions de dollars grâce à une offre de droits et en concluant un accord de vente-bail de 4,0 millions de dollars. RumbleOn a terminé 2024 avec 85,3 millions de dollars en liquidités non restreintes et 146,2 millions de dollars disponibles sous les lignes de financement pour véhicules sportifs.
RumbleOn (NASDAQ: RMBL) hat seine finanziellen Ergebnisse für das 4. Quartal und das Gesamtjahr 2024 veröffentlicht, die eine gemischte Leistung angesichts makroökonomischer Herausforderungen zeigen. Im 4. Quartal 2024 sanken die Einnahmen um 13,4% auf 269,6 Millionen Dollar, mit einem Nettoverlust von 56,4 Millionen Dollar, der sich im Vergleich zu einem Verlust von 168,5 Millionen Dollar im 4. Quartal 2023 verbessert hat. Das Unternehmen erzielte im 4. Quartal ein positives bereinigtes EBITDA von 2,2 Millionen Dollar.
Für das Gesamtjahr 2024 sanken die Einnahmen um 11,5% auf 1.209,2 Millionen Dollar, mit einem Nettoverlust von 78,6 Millionen Dollar, besser als der Verlust von 215,5 Millionen Dollar im Jahr 2023. Zu den bemerkenswerten Erfolgen gehören die Generierung von 99,4 Millionen Dollar an operativem Cashflow, die Reduzierung des Bestands um 106,9 Millionen Dollar und die Senkung der Verbindlichkeiten aus Finanzierungsplänen um 81,4 Millionen Dollar.
Das Unternehmen stärkte seine finanzielle Position, indem es 38,8 Millionen Dollar an wandelbaren Anleihen vollständig zurückzahlte, 10 Millionen Dollar durch eine Bezugsrechtsangebot aufbrachte und einen Verkauf-Leasing-Rückkaufvertrag über 4,0 Millionen Dollar abschloss. RumbleOn beendete das Jahr 2024 mit 85,3 Millionen Dollar an ungebundenem Bargeld und 146,2 Millionen Dollar, die unter den Finanzierungsplänen für Sportfahrzeuge verfügbar sind.
- Generated $99.4 million in operating cash flow, compared to -$38.9M in 2023
- Reduced Non-Vehicle Net Debt by $60.8 million to $182.1 million
- Improved Q4 net loss to $56.4M from $168.5M year-over-year
- Achieved positive Q4 Adjusted EBITDA of $2.2M vs -$0.3M loss in 2023
- Reduced inventory by $106.9M and floor plan notes by $81.4M
- Q4 revenue declined 13.4% to $269.6 million
- Full-year revenue decreased 11.5% to $1,209.2 million
- Full-year Adjusted EBITDA declined 12.0% to $32.9 million
- Recorded $39.3M in intangible asset impairment charges in Q4 2024
- Required additional financing through $10M rights offering
Insights
RumbleOn's Q4 and full-year 2024 results highlight a company navigating significant challenges while implementing strategic financial discipline. Despite revenue declining 13.4% to
Most impressive is RumbleOn's operational cash flow turnaround, generating
Cost control measures appear effective with SG&A expenses dropping
The company's strategic financial management has strengthened its liquidity position with
Key Fourth Quarter 2024 Highlights (Compared to Fourth Quarter 2023):
- Revenue of
$269.6 million 13.4% - Net loss totaled
$56.4 million $168.5 million $39.3 million $60.1 million $59.3 million - Selling, general & administrative expense (SG&A) was
$64.2 million $81.7 million - Adjusted EBITDA(1) of
$2.2 million $0.3 million
Key Full Year 2024 Highlights (Compared to Full Year 2023)
- Revenue of
$1,209.2 million 11.5% - Net loss totaled
$78.6 million $215.5 million - Selling, general & administrative expense (SG&A) was
$275.4 million $347.3 million - Adjusted EBITDA(1) of
$32.9 million 12.0%
Other Highlights:
- Fully repaid
$38.8 million 6.75% convertible senior notes upon maturity in January 2025 - Raised
$10 million - Completed a sale-leaseback for a dealership property with gross proceeds of
$4.0 million - Entered into a new
$16.0 million - Reduced inventories by
$106.9 million $81.4 million - Operating cash inflows for 2024 totaled
$99.4 million $38.9 million - Reduced Non-Vehicle Net Debt(1) in 2024 by
$60.8 million $182.1 million
"Despite the macroeconomic challenges of 2024, we remained focused on disciplined execution, operational efficiency, and building a strong foundation for long-term value creation. While our powersports segment faced headwinds, we exceeded our goal of reducing new inventory levels and generated positive free cash flow for the year. I'm incredibly proud of our front-line store operations team for delivering exceptional performance in a tough environment. There's more work ahead to strengthen profitability in 2025, but with the right inventory mix and a well-developed plan, we're confident we can deliver sustained, improved results," stated Michael Quartieri, RumbleOn's Chairman and Chief Executive Officer.
Fourth Quarter 2024 Results | |||||
Fourth Quarter | |||||
($ in millions except units) | 2024 | 2023 | YOY Change | ||
Revenue | $ 269.6 | $ 311.2 | (13.4) % | ||
Gross Profit | $ 67.5 | $ 71.2 | (5.2) % | ||
SG&A | $ 64.2 | $ 81.7 | (21.4) % | ||
Adjusted SG&A(1) | $ 62.3 | $ 80.8 | (22.9) % | ||
Operating Loss | $ (40.6) | $ (75.4) | 46.2 % | ||
Net Loss | $ (56.4) | $ (168.5) | 66.5 % | ||
Adjusted EBITDA(1) | $ 2.2 | $ (0.3) | NM | ||
Unit Retail Sales: | |||||
New Powersports | 10,217 | 11,293 | (9.5) % | ||
Pre-owned Powersports | 3,925 | 4,303 | (8.8) % | ||
Full Year | |||||
($ in millions except units) | 2024 | 2023 | YOY Change | ||
Revenue | $ 1,209.2 | $ 1,366.4 | (11.5) % | ||
Gross Profit | $ 314.3 | $ 359.9 | (12.7) % | ||
SG&A | $ 275.4 | $ 347.3 | (20.7) % | ||
Adjusted SG&A(1) | $ 270.0 | $ 333.1 | (18.9) % | ||
Operating Loss | $ (14.7) | $ (69.5) | 78.8 % | ||
Net Loss | $ (78.6) | $ (215.5) | 63.5 % | ||
Adjusted EBITDA(1) | $ 32.9 | $ 37.4 | (12.0) % | ||
Unit Retail Sales: | |||||
New Powersports | 42,464 | 45,706 | (7.1) % | ||
Pre-owned Powersports | 22,524 | 26,956 | (16.4) % | ||
Full Year | |||||
($ in millions) | 2024 | 2023 | YOY Change | ||
Operating Cash Flow | $ 99.4 | $ (38.9) | 355.5 % | ||
Capital Expenditures | $ (2.0) | $ (13.7) | 85.4 % | ||
Free Cash Flow(1) | $ 97.4 | $ (52.6) | 285.2 % | ||
Dec. 31, | Dec. 31, | ||||
2024 | 2023 | Change | |||
Cash (unrestricted) | $ 85.3 | $ 58.9 | 44.8 % | ||
Long-term Debt, including Current Maturities | $ 251.1 | $ 274.3 | (8.5) % | ||
Non-Vehicle Debt(1) | $ 267.4 | $ 301.8 | (11.4) % | ||
Non-Vehicle Net Debt(1) | $ 182.1 | $ 242.9 | (25.0) % | ||
(1) | Adjusted SG&A, EBITDA, Adjusted EBITDA, Free Cash Flow, and Non-Vehicle Net Debt are non-GAAP measures. Reconciliations of GAAP to non-GAAP financial measures are provided in accompanying financial schedules. |
NM = Not meaningful. | |
Fourth Quarter 2024 — Segment Results
Powersports Segment | |||||
Fourth Quarter | |||||
$ in millions, except per unit | 2024 | 2023 | YOY Change | ||
Unit Sales (#) | |||||
Retail | |||||
New | 10,217 | 11,293 | (9.5) % | ||
Pre-owned | 3,925 | 4,303 | (8.8) % | ||
Total retail | 14,142 | 15,596 | (9.3) % | ||
Pre-owned wholesale | 1,206 | 1,995 | (39.5) % | ||
Total Powersports Unit Sales | 15,348 | 17,591 | (12.8) % | ||
Revenue | |||||
New | $ 138.5 | $ 157.0 | (11.8) % | ||
Pre-owned | 47.9 | 56.3 | (14.9) % | ||
Finance & Insurance, net | 22.6 | 27.3 | (17.2) % | ||
Parts, Services, and Accessories | 47.2 | 57.6 | (18.1) % | ||
Total Powersports Revenue | $ 256.2 | $ 298.2 | (14.1) % | ||
Gross Profit | |||||
New | $ 15.0 | $ 20.7 | (27.5) % | ||
Pre-owned | 4.7 | (5.8) | 181.0 % | ||
Finance & Insurance, net | 22.6 | 27.3 | (17.2) % | ||
Parts, Services, and Accessories | 22.0 | 25.6 | (14.1) % | ||
Total Powersports Gross Profit | $ 64.3 | $ 67.8 | (5.2) % | ||
Powersports GPU(1) | $ 4,547 | $ 4,350 | 4.5 % | ||
(1) | Calculated as total powersports gross profit divided by total retail units sold. |
Vehicle Transportation Services Segment | ||||||||||
Fourth Quarter | ||||||||||
($ in millions) | 2024 | 2023 | Change | |||||||
Vehicles Transported (#) | 22,212 | 21,599 | 2.8 % | |||||||
Vehicle Transportation Services Revenue | $ 13.4 | $ 13.0 | 3.1 % | |||||||
Vehicle Transportation Services Gross Profit | $ 3.3 | $ 3.4 | (2.9) % | |||||||
Balance Sheet, Liquidity and Cash Flow
The Company generated
Investor Conference Call
RumbleOn's management will host a conference call to discuss these results on March 11, 2025 at 7:00 a.m. Central Time (8:00 a.m. Eastern Time). To access the conference call,
About RumbleOn
RumbleOn, Inc. (NASDAQ: RMBL), operates through two operating segments: our Powersports dealership group and Wholesale Express, LLC, an asset-light transportation services provider focused on the automotive industry. We believe our Powersports group is the largest powersports retail group in
For more information on RumbleOn, please visit rumbleon.com.
Forward-Looking Statements
This press release contains "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," "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.
Non-GAAP Measures
To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in
RumbleOn, Inc. | ||||||||||||||
Consolidated Statements of Operations | ||||||||||||||
(in millions, except per share amounts) | ||||||||||||||
Fourth Quarter | Full Year | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Revenue: | ||||||||||||||
Powersports vehicles | $ 186.4 | $ 213.3 | $ 842.6 | $ 951.4 | ||||||||||
Parts, service and accessories | 47.2 | 57.6 | 206.2 | 241.8 | ||||||||||
Finance and insurance, net | 22.6 | 27.3 | 102.4 | 117.0 | ||||||||||
Vehicle transportation services | 13.4 | 13.0 | 58.0 | 56.2 | ||||||||||
Total revenue | 269.6 | 311.2 | 1,209.2 | 1,366.4 | ||||||||||
Cost of revenue: | ||||||||||||||
Powersports vehicles | 166.8 | 198.4 | 738.6 | 832.5 | ||||||||||
Parts, service and accessories | 25.2 | 32.0 | 111.7 | 131.5 | ||||||||||
Vehicle transportation services | 10.1 | 9.6 | 44.6 | 42.5 | ||||||||||
Total cost of revenue | 202.1 | 240.0 | 894.9 | 1,006.5 | ||||||||||
Gross profit | 67.5 | 71.2 | 314.3 | 359.9 | ||||||||||
Selling, general and administrative | 64.2 | 81.7 | (1) | 275.4 | 347.3 | |||||||||
Impairment of goodwill and franchise rights | 39.3 | 60.1 | 39.3 | 60.1 | ||||||||||
Depreciation and amortization | 4.6 | 4.8 | 14.3 | 22.0 | ||||||||||
Operating loss | (40.6) | (75.4) | (14.7) | (69.5) | ||||||||||
Other expense: | ||||||||||||||
Floor plan interest expense | (3.3) | (3.4) | (16.0) | (13.2) | ||||||||||
Other interest expense, net | (11.9) | (18.0) | (48.1) | (64.0) | ||||||||||
Other expense | (0.4) | (2.6) | (1) | — | (8.4) | |||||||||
Total other expense | (15.6) | (24.0) | (64.1) | (85.6) | ||||||||||
Loss from continuing operations before income taxes | (56.2) | (99.4) | (78.8) | (155.1) | ||||||||||
Income tax provision (benefit) | 0.2 | 69.0 | (0.2) | 59.3 | ||||||||||
Loss from continuing operations | $ (56.4) | $ (168.4) | $ (78.6) | $ (214.4) | ||||||||||
Loss from discontinued operations | — | (0.1) | — | (1.1) | ||||||||||
Net loss | $ (56.4) | $ (168.5) | $ (78.6) | $ (215.5) | ||||||||||
Weighted average shares-basic and diluted | 35.7 | 21.6 | 35.4 | 17.7 | ||||||||||
Loss from continuing operations per share - basic and diluted | $ (1.58) | $ (7.81) | $ (2.22) | $ (12.08) | ||||||||||
Net loss per share - basic and diluted | $ (1.58) | $ (7.81) | $ (2.22) | $ (12.15) | ||||||||||
Common shares outstanding, net of treasury stock, at period end | 37.7 | 35.1 | 37.7 | 35.1 | ||||||||||
(1) | Includes a |
RumbleOn, Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
($ in millions) | ||||||||
December 31, | ||||||||
2024 | 2023 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ 85.3 | $ 58.9 | ||||||
Restricted cash | 11.4 | 18.1 | ||||||
Accounts receivable, net | 30.5 | 50.3 | ||||||
Inventory | 240.6 | 347.5 | ||||||
Prepaid expense and other current assets | 3.6 | 6.0 | ||||||
Total current assets | 371.4 | 480.8 | ||||||
Property and equipment, net | 63.5 | 76.8 | ||||||
Right-of-use assets | 157.1 | 163.9 | ||||||
Franchise rights and other intangible assets | 161.9 | 203.3 | ||||||
Other assets | 1.3 | 1.5 | ||||||
Total assets | $ 755.2 | $ 926.3 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and other current liabilities | $ 75.4 | $ 68.1 | ||||||
Vehicle floor plan notes payable | 209.9 | 291.3 | ||||||
Current portion of long-term debt | 39.1 | 35.6 | ||||||
Total current liabilities | 324.4 | 395.0 | ||||||
Long-term liabilities: | ||||||||
Long-term debt | 212.0 | 238.7 | ||||||
Operating lease liabilities | 129.8 | 134.1 | ||||||
Other long-term liabilities, including finance lease obligation | 52.3 | 52.9 | ||||||
Total long-term liabilities | 394.1 | 425.7 | ||||||
Total liabilities | 718.5 | 820.7 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Additional paid-in capital | 700.9 | 701.0 | ||||||
Accumulated deficit | (659.9) | (591.1) | ||||||
Treasury stock | (4.3) | (4.3) | ||||||
Total stockholders' equity | 36.7 | 105.6 | ||||||
Total liabilities and stockholders' equity | $ 755.2 | $ 926.3 | ||||||
RumbleOn, Inc. | ||||||
Consolidated Statements of Cash Flows | ||||||
($ in millions) | ||||||
Full Year | ||||||
2024 | 2023 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net loss | $ (78.6) | $ (215.5) | ||||
Loss from discontinued operations | — | (1.1) | ||||
Loss from continuing operations | (78.6) | (214.4) | ||||
Adjustments to reconcile loss from continuing operations to net cash provided by operating activities: | ||||||
Depreciation and amortization | 14.3 | 22.0 | ||||
Amortization of debt issuance costs | 9.2 | 10.4 | ||||
Inventory write-down | — | 12.6 | ||||
Stock-based compensation | 4.6 | 12.0 | ||||
Loss on sale of property in sale-leaseback transaction | 0.5 | — | ||||
Impairment on intangible assets | 39.3 | 60.1 | ||||
Deferred taxes | (0.4) | 58.5 | ||||
Gain on partial termination of warehouse lease | (0.9) | — | ||||
Interest paid-in-kind capitalized to debt principal | 1.5 | — | ||||
Valuation allowance and loss on sale of loans receivable portfolio | — | 7.6 | ||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||
Accounts receivable | 19.8 | 3.9 | ||||
Inventory | 107.9 | (31.7) | ||||
Prepaid expenses and other assets | 2.2 | 1.7 | ||||
Accounts payable and accrued liabilities | 6.2 | (4.4) | ||||
Other liabilities | 3.1 | (3.7) | ||||
Floor plan trade note borrowings | (29.3) | 26.5 | ||||
Net cash provided by (used in) operating activities | 99.4 | (38.9) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Acquisitions, net of cash received | (0.7) | (3.3) | ||||
Proceeds from sale of property | 4.0 | — | ||||
Purchase of property and equipment | (2.0) | (13.7) | ||||
Technology development | (0.4) | (2.1) | ||||
Net cash provided by (used in) investing activities | 0.9 | (19.1) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Repayment of debt | (36.0) | (111.7) | ||||
Increase (decrease) in borrowings from non-trade floor plans | (53.0) | 42.5 | ||||
Proceeds from sale-leaseback transaction | — | 50.0 | ||||
Proceeds from rights offering | 9.8 | 98.4 | ||||
Other | (1.4) | (1.0) | ||||
Net cash provided by (used in) financing activities | (80.6) | 78.2 | ||||
Net cash used in discontinued operations | — | (1.8) | ||||
NET CHANGE IN CASH AND RESTRICTED CASH | 19.7 | 18.4 | ||||
Cash and restricted cash at beginning of period | 77.0 | 58.6 | ||||
Cash and restricted cash at end of period | $ 96.7 | $ 77.0 | ||||
RumbleOn, Inc.
Non-GAAP Measures
(Unaudited)
($ in millions)
EBITDA and Adjusted EBITDA
We define EBITDA as net loss adjusted to add back interest expense, income taxes, depreciation and amortization and discontinued operations. Adjusted EBITDA further adds back non-cash stock-based compensation costs, transaction costs, certain litigation expenses not associated with our ongoing operations, charges related to the 2023 proxy contest and reorganization of our Board of Directors, impairment charges, and other non-recurring costs and credits, as these recoveries, charges and expenses are not considered a part of our core business operations and are not necessarily an indicator of ongoing, future company performance. Adjusted EBITDA is reduced by floor plan interest expense. Our industry typically treats interest expense on vehicle floor plan debt as operating expense. Vehicle floor plan debt is integral to our operations and is collateralized by our powersports vehicles.
Adjusted EBITDA is one of the primary metrics we use to evaluate the financial performance of our business. We present Adjusted EBITDA because we believe it is helpful in highlighting trends in our operating results and it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry.
A reconciliation of net loss to EBITDA and Adjusted EBITDA is provided below:
Fourth Quarter | Full Year | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net loss (GAAP) | $ (56.4) | $ (168.5) | $ (78.6) | $ (215.5) | |||
Loss from discontinued operations | — | (0.1) | — | (1.1) | |||
Loss from continuing operations | (56.4) | (168.4) | (78.6) | (214.4) | |||
Add back: | |||||||
Floor plan interest expense | 3.3 | 3.4 | 16.0 | 13.2 | |||
Other interest expense | 11.9 | 18.0 | 48.1 | 64.0 | |||
Depreciation and amortization | 4.6 | 4.8 | 14.3 | 22.0 | |||
Income tax benefit | 0.2 | 69.0 | (0.2) | 59.3 | |||
EBITDA (non-GAAP) | (36.4) | (73.2) | (0.4) | (55.9) | |||
Adjustments: | |||||||
Floor plan interest expense | (3.3) | (3.4) | (16.0) | (13.2) | |||
Stock-based compensation | 0.7 | 1.1 | 4.6 | 12.0 | |||
Lease expense associated with favorable related party leases in excess of contractual lease payments | 0.3 | 0.3 | 1.1 | 1.1 | |||
Other non-recurring costs(1) | 1.6 | 0.6 | 4.2 | 2.7 | |||
Personnel restructuring costs(2) | — | — | 0.1 | 5.3 | |||
Proxy contest and Board reorganization charges | — | — | — | 5.1 | |||
Loss associated with ROF loan receivables(3) | — | 1.6 | — | 7.6 | |||
Pre-owned vehicle inventory valuation adjustment | — | 12.6 | — | 12.6 | |||
Impairment of goodwill and franchise rights | 39.3 | 60.1 | 39.3 | 60.1 | |||
Adjusted EBITDA (non-GAAP) | $ 2.2 | $ (0.3) | $ 32.9 | $ 37.4 | |||
(1) | Other non-recurring costs, which include one-time expenses incurred. For 2024 period, this was primarily costs for litigation not part of normal, ongoing operations and a canceled service contract. For 2023 period, this was comprised primarily of integration costs and professional fees associated with acquisitions and a death benefit to the estate of a former Company officer and director. |
(2) | Amount in 2023 is primarily comprised of expenses associated with the separation of a former officer of the Company. |
(3) | Loss associated with the fair value of the RumbleOn Finance loan receivables portfolio, which was sold during the fourth quarter of 2023. |
RumbleOn, Inc.
Non-GAAP Measures
(Unaudited)
($ in millions)
Free Cash Flow
We define Free Cash Flow as cash flows from operating activities less capital expenditures of property and equipment (not including acquisitions). We utilize Free Cash Flow when assessing the Company's sources of liquidity and capital resources. We believe that Free Cash Flow is helpful in understanding the Company's capital requirements and provides an additional means to reflect the cash flow trends in the Company's business. We believe Free Cash Flow is useful to investors because it represents the cash that our operating businesses generate, before taking into account non-operational cash movements. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, we think it is important to evaluate Free Cash Flow along with our consolidated statement of cash flows.
A reconciliation of cash flows from operating activities to Free Cash Flow is provided below:
Full Year | |||
2024 | 2023 | ||
Cash flows from operating activities (GAAP) | $ 99.4 | $ (38.9) | |
Less: | |||
Capital expenditures | (2.0) | (13.7) | |
Free Cash Flow (non-GAAP) | $ 97.4 | $ (52.6) | |
Non-Vehicle Net Debt
We define Non-Vehicle Net Debt as total principal of long-term debt, including current maturities, less unrestricted cash. Our restricted cash is principally related to vehicle floor plan debt and is therefore not part of this calculation. Vehicle floor plan debt and finance lease obligations are not included in this measure. We believe that Non-Vehicle Net Debt is useful to investors and analysts as a measure of our financial position. We use Non-Vehicle Net Debt to monitor and compare our financial position from period to period.
A reconciliation of total long-term debt, including current maturities to Non-Vehicle Net Debt is provided below:
As of Dec. 31, 2024 | As of Dec. 31, 2023 | ||
Long-term debt, including current maturities (GAAP) | $ 251.1 | $ 274.3 | |
Add back: unamortized debt discount and issuance costs | 16.3 | 27.5 | |
Principal of long-term debt, including current maturities | 267.4 | 301.8 | |
Less: unrestricted cash | (85.3) | (58.9) | |
Non-Vehicle Net Debt (non-GAAP) | $ 182.1 | $ 242.9 |
RumbleOn, Inc.
Non-GAAP Measures
(Unaudited)
($ in millions)
Adjusted SG&A
We define Adjusted SG&A as SG&A adjusted to deduct transaction costs, certain litigation expenses not associated with our ongoing operations, charges related to the 2023 proxy contest and reorganization of our Board of Directors, and other non-recurring costs, as these charges and expenses are not considered a part of our core business operations and are not necessarily an indicator of the ongoing run rate of our SG&A. Adjusted SG&A is a non-GAAP financial measure and should not be used as a replacement for SG&A reported in compliance with GAAP. Adjusted SG&A has certain limitations in that it does not represent the total SG&A for the period. Therefore, we think it is important to evaluate Adjusted SG&A along with SG&A and our overall statement of operations.
A reconciliation of SG&A to Adjusted SG&A is below:
Fourth Quarter | Full Year | ||||||
2024 | 2023 | 2024 | 2023 | ||||
SG&A (GAAP) | $ 64.2 | $ 81.7 | $ 275.4 | $ 347.3 | |||
% of Gross Profit | 95.1 % | 114.7 % | 87.6 % | 96.5 % | |||
Adjustments: | |||||||
Lease expense associated with favorable related party leases in excess of contractual lease payments | (0.3) | (0.3) | (1.1) | (1.1) | |||
Other non-recurring costs(1) | (1.6) | (0.6) | (4.2) | (2.7) | |||
Personnel restructuring costs(2) | — | — | (0.1) | (5.3) | |||
Charges related to proxy contest and Board of Directors reorganization | — | — | — | (5.1) | |||
Adjusted SG&A (non-GAAP) | $ 62.3 | $ 80.8 | $ 270.0 | $ 333.1 | |||
% of Gross Profit | 92.3 % | 113.5 % | 85.9 % | 92.6 % | |||
(1) | Other non-recurring costs, which include one-time expenses incurred. For the 2024 period, amount consisted primarily of litigation costs outside the Company's ongoing operations and costs for a canceled service contract. For the 2023 period, the balance was comprised primarily of integration costs and professional fees associated with acquisitions and a death benefit to the estate of a former Company officer and director. |
(2) | Severance and other charges associated with the separation of former executives. |
RumbleOn, Inc. | ||||
Supplementary Data | ||||
(Unaudited) | ||||
Key Term Loan Credit Agreement Covenant Compliance Calculations as of December 31, 2024(1) | ||||
Consolidated Total Net Leverage Ratio | 5.3x | |||
Covenant | Maximum Allowed | 9.5x | ||
Consolidated Senior Secured Net Leverage Ratio | 5.3x | |||
Covenant | Maximum Allowed | 9.0x | ||
(1) | Calculated in accordance with our credit agreement. |
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SOURCE RumbleOn
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