RumbleOn Reports Record Operational and Financial Results for the Fourth Quarter and Full Year 2021

Rhea-AI Summary

RumbleOn reported significant growth in its 4Q results for the year ended December 31, 2021. The company achieved $440.9 million in revenue for the fourth quarter, an increase of 164% in used retail Powersports revenue and 87% growth in used retail unit sales compared to the same quarter last year. Full-year pro forma revenue reached $1,586.1 million, while net income for 4Q was $20.7 million with earnings per share of $1.35. Management emphasizes a strong customer experience strategy and plans to continue enhancing their omnichannel approach.

Positive

• 4Q revenue of $440.9 million, up 164% from last year.
• Used retail unit sales increased 87% in 4Q.
• Full-year pro forma revenue of $1,586.1 million hit the high end of guidance.
• 4Q net income reached $20.7 million with EPS of $1.35.
• Pro forma adjusted EBITDA of $117.4 million.

Negative

• None.

• 4Q Pro forma Used Retail Powersports Revenue up 164%, Used Retail Unit Sales up 87%
• 4Q Revenue of $440.9 million; Full Year Pro forma Revenue of $1,586.1 million, reaching the high end of the Revenue guidance range
• 4Q Net Income of $20.7 million and fully diluted Earnings Per Share of $1.35
• Full Year Pro forma Net Income of $45.5 million with Pro forma Adjusted EBITDA of $117.4 million
• Management to host a conference call today, March 16, 2022, at 8:30 am ET

IRVING, Texas--(BUSINESS WIRE)-- RumbleOn, Inc. (NASDAQ: RMBL) (the “Company” or “RumbleOn”), the nation's first technology-based omnichannel powersports platform, today announced operational and financial results for the three and twelve months ended December 31, 2021. RumbleOn management is hosting an investor call to discuss the Company’s results today, March 16, 2022, at 8:30 am ET. The Company issued a Shareholder Letter with management commentary and financial information, which is available on RumbleOn’s Investor Relations website.

Marshall Chesrown, RumbleOn’s Chief Executive Officer commented, “We are excited to report a record year for RumbleOn, as we accelerated the flow through of inventory acquired online through our retail locations. We generated $117.4 million in pro forma adjusted EBITDA, while delivering nearly $1.6 billion in pro forma revenue, all the while making meaningful strides towards our long-term objectives.”

“Consumers are demanding convenience, personalization, and affordability everywhere they shop, and Powersports is no different. We are reimagining the customer experience, both online and in the showroom, and we are making great strides in our mission to build the future of Powersports. Our strategy to combine the online with the in-store experience is working. On a comparable pro forma basis in Q4, we sold 87% more used retail Powersports units and generated 164% more revenue from these sales compared to the same quarter last year. We are laser-focused on building an unparalleled customer experience in Powersports, and we are confident that this is the most durable way to deliver long term value to our stakeholders,” concluded Mr. Chesrown.

Shareholder Letter

RumbleOn issued a shareholder letter with operational and financial results, outlook, and management commentary that can be accessed on the quarterly results page of the Company’s Investor Relations website at https://investors.rumbleon.com/quarterly-results.

Conference Call Details

RumbleOn's management will host a conference call to discuss its operational and financial results, and provide a detailed outlook on March 16, 2022 at 8:30 a.m. Eastern Time. A live and archived webcast can be accessed from RumbleOn's Investor Relations website. To access the conference call telephonically, callers may dial 1-877-407-9716 (or 1-201-493-6779 for callers outside of the United States) and enter conference ID 13727311.

About RumbleOn

RumbleOn, Inc. is the nation's first technology-based omnichannel powersports platform. Headquartered in the Dallas Metroplex, RumbleOn is revolutionizing the customer experience for outdoor enthusiasts across the country and making powersport vehicles accessible to more people, in more places than ever before. To learn more please visit us online at https://www.rumbleon.com/.

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 (PSLRA), 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.

As disclosed in a Form 12b-25 filed earlier today, as RumbleOn completes its first year 404 assessment of internal control over financial reporting, the Company currently anticipates that it will disclose in its Form 10-K for the year ended December 31, 2021, a material weakness relating to general controls over information technology. RumbleOn does not expect this material weakness will impact the financial information reported in this press release. Furthermore, RumbleOn has performed additional analyses and other procedures to enable management to conclude that the financial information included in this press release fairly presents, in all material respects, RumbleOn’s financial condition and results of operations as of and for the quarterly period and year ended December 31, 2021, however RumbleOn can provide no assurance that a change to the financial information will not be required or that the Company will not identify other material weaknesses. RumbleOn expects that it will file the Form 10-K 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. Non-GAAP financial measures for the three months and years ended December 31, 2021 and December 31, 2020 used in this release are pro forma and as reported adjusted EBITDA.

Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative 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 U.S. GAAP.

Adjusted EBITDA is defined as net income (loss) adjusted to add back interest expense (including debt extinguishment), depreciation and amortization, changes in derivative liability and certain recoveries, charges and expenses, such as an insurance recovery, non-cash stock-based compensation costs, acquisition related costs, litigation expenses, and other non-recurring costs, as these recoveries, charges and expenses are not considered a part of our core business operations and are not 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.

RumbleOn, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(dollars in thousands)
		As Reported (unaudited)														Pro Forma (unaudited)
			4Q 2021			4Q 2020		FY 2021			FY 2020						4Q 2021			4Q 2020		FY 2021			FY 2020
Net income (loss)		$	20,660		$	(5,490	)	$	(9,725	)	$	(24,999	)			$	20,660		$	8,025		$	45,495		$	18,914
Add back:
Interest expense (including debt extinguishment)			7,355			1,451			15,462			6,450					7,355			13,455			39,404			47,312
Depreciation and amortization			3,155			575			6,103			2,143					3,155			4,364			13,200			13,607
Interest income and miscellaneous income			—			—			—			—					—			(181	)		(1,391	)		(1,967	)
Change in derivative liability			25			(4	)		8,799			(11	)				25			(4	)		8,799			(10	)
Income taxes			(10,984	)		—			(21,665	)		—					(10,984	)		2,675			(2,706	)		6,305
EBITDA			20,211			(3,468	)		(1,026	)		(16,417	)				20,211			28,334			102,801			84,161
Adjustments:
Impairment loss on automotive inventory			—			—			—			11,738					—			—			—			11,738
Insurance recovery			—			—			—			178					—			—			—			178
Insurance proceeds			—			—			(3,135	)		(5,615	)				—			805			(3,135	)		(4,810	)
Stock-based compensation1			2,054			553			29,219			2,978					2,054			553			29,219			3,175
Acquisition costs associated with the RideNow transaction			766			—			4,281			—					766			—			4,281			—
Other non-recurring costs			374			267			2,025			1,347					374			267			2,025			1,347
PPP loan forgiveness			(2,110	)		—			(2,682	)		—					(2,110	)		—			(21,721	)		—
Purchase accounting related			1,388			—			1,388			—					1,388			—			1,388			—
Adjusted EBITDA			22,683			(2,648	)		30,070			(5,791	)				22,683			29,959			114,858			95,789
Pro forma adjustments			—			—			—			—					—			31			2,525			124
Pro forma adjusted EBITDA		$	22,683		$	(2,648	)	$	30,070		$	(5,791	)			$	22,683		$	29,990		$	117,383		$	95,913
1 Stock based compensation includes the vesting of all then outstanding RSU awards upon the closing of the RideNow transaction.

RumbleOn, Inc.
Consolidated Balance Sheets
(unaudited)
(dollars in thousands; except per share amounts)
		December 31,
			2021				2020
ASSETS
Current assets:
Cash		$	48,974			$	1,467
Restricted cash			3,000				2,049
Accounts receivable, net			41,619				9,408
Inventory			201,666				21,360
Prepaid expense and other current assets			6,335				3,446
Total current assets			301,594				37,730
Property and equipment, net			21,417				6,521
Right-of-use assets			133,112				5,690
Goodwill			260,922				26,887
Intangible assets, net			302,066				46
Other assets			26,207				105
Total assets			1,045,318				76,979
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities			62,040				14,193
Vehicle floor plan notes payable			97,278				17,812
Accrued interest payable			—				—
Current portion lease liabilities			20,249				—
Current portion of long-term and convertible debts			4,322				3,440
Total current liabilities			183,889				35,445
Long-term liabilities:
Senior secured debt			253,438				—
Convertible debt, net			29,396				27,166
Notes payable			150				4,691
Derivative liabilities			66				17
Long-term portion of operating lease liabilities			114,687				4,370
Long-term portion of financing lease liabilities			2,869				—
Deferred tax liabilities			8,138				—
Other long-term liabilities			21,396				720
Total long-term liabilities			430,140				36,964
Total liabilities			614,029				72,409
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding as of December 31, 2021 and 2020			—				—
Class A common stock, $0.001 par value, 50,000 shares authorized, 50,000 shares issued and outstanding as of December 31, 2021 and 2020			—				—
Class B common stock, $0.001 par value, 100,000,000 shares authorized, 14,882,022 and 2,191,633 shares issued and outstanding as of December 31, 2021 and 2020			15				2
Additional paid-in capital			549,699				108,949
Accumulated deficit			(114,106	)			(104,381	)
Class B common stock in treasury, at cost 123,089 and 0 shares as of December 31, 2021 and 2020			(4,319	)			—
Total stockholders’ equity			431,289				4,570
Total liabilities and stockholders’ equity		$	1,045,318			$	76,979

RumbleOn, Inc.
Consolidated Statements of Operations
(unaudited)
(dollars in thousands, except per share amounts)
		Three months ended December 31,								Twelve months ended December 31,
			2021				2020				2021				2020
Revenue:
Vehicles Sales
Powersports		$	202,002			$	8,012			$	323,303			$	46,654
Automotive			144,232				55,843				460,888				337,085
Parts, service and accessories			50,889				200				66,969				872
Vehicle logistics			11,090				6,625				43,878				31,816
Finance and insurance, net			32,695				—				39,693				—
Total revenue			440,908				70,680				934,731				416,427
Cost of revenue
Powersports			167,679				6,369				264,872				40,061
Automotive			136,391				51,755				430,142				308,801
Parts, service and accessories			38,417				—				47,262				—
Vehicle logistics			8,320				4,875				34,278				24,200
Cost of revenue before impairment loss			350,807				62,999				776,554				373,062
Impairment loss on automotive inventory			—				—				—				11,738
Total cost of revenue			350,807				62,999				776,554				384,800
Gross profit			90,101				7,681				158,177				31,627
Selling, general and administrative			69,946				10,596				135,801				50,681
Stock-based compensation and other issuances			2,054				553				29,219				2,978
Insurance recovery			—				—				(3,135	)			(5,615	)
Depreciation and amortization			3,155				575				6,103				2,143
Operating income (loss)			14,946				(4,043	)			(9,811	)			(18,560	)
Interest expense			(7,355	)			(1,451	)			(15,462	)			(6,450	)
Forgiveness of PPP loan			2,110				—				2,682				—
Change in derivative liability			(25	)			4				(8,799	)			11
Other			—				—				—			—
Income (loss) before benefit for income taxes			9,676				(5,490	)			(31,390	)			(24,999	)
Benefit for income taxes			(10,984	)			—				(21,665	)			—
Net income (loss)		$	20,660			$	(5,490	)		$	(9,725	)		$	(24,999	)
Weighted average number of common shares outstanding - basic			15,055,084				2,241,633				6,920,318				2,184,441
Weighted average number of common shares outstanding - fully diluted			15,263,736				—				—				—
Net income (loss) per share - basic		$	1.37			$	(2.45	)		$	(1.41	)		$	(11.44	)
Net income (loss) per share - fully diluted		$	1.35			$	—			$	—			$	—

RumbleOn, Inc.
Condensed Consolidated Statements of Cash Flows
For the Two Years Ended December 31, 2021
(unaudited)
(dollars in thousands)
		2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$ (9,725)		$ (24,999)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		6,103		2,143
Amortization of debt discounts		4,386		2,027
Forgiveness of PPP loan		(2,682)		—
Bad debt expense		—		311
Share based compensation		29,219		2,978
Impairment loss on inventory		—		11,738
Impairment loss on property and equipment		—		178
Loss (gain) from change in value of derivatives		8,799		(11)
Gain on early extinguishment of debt		—		(188)
Deferred taxes		(19,910)		—
Changes in operating assets and liabilities:
Increase in accounts receivable		(5,978)		(1,236)
(Increase) decrease in inventory		(63,554)		24,282
Increase in prepaid expenses and other current assets		(1,102)		(2,236)
(Increase) decrease in other assets		(25,983)		87
Increase in accounts payable and accrued liabilities		12,174		1,349
Increase in other liabilities		17,147		720
(Decrease) in floor plan trade note borrowings		15,119		—
Net cash (used in) provided by operating activities		(35,987)		17,143
CASH FLOWS FROM INVESTING ACTIVITIES
Cash used for acquisition, net of cash received		(366,967)		—
Purchase of property and equipment		(7,718)		(175)
Proceeds from sales of property and equipment		—		38
Technology development		(1,871)		(2,145)
Net cash used in investing activities		(376,556)		(2,282)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible note		—		8,272
Proceeds from senior secured debt		261,451		—
Repayments of notes payable		(10,413)		(1,768)
Increase (decrease) in borrowings from non-trade floor plans		18,722		(40,533)
Net proceeds from PPP loan		—		5,178
Net proceeds from sale of common stock		191,241		10,780
Net cash provided by (used in) financing activities		461,001		(18,071)
NET INCREASE IN CASH		48,458		(3,210)
CASH AND RESTRICTED CASH AT BEGINNING OF PERIOD		3,516		6,726
CASH AND RESTRICTED CASH AT END OF PERIOD		$ 51,974		$ 3,516

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220315006380/en/

Investor Relations Contact:

Will Newell

investors@rumbleon.com

Source: RumbleOn, Inc

FAQ

What were RumbleOn's 4Q 2021 financial results?

RumbleOn reported 4Q revenue of $440.9 million, with a net income of $20.7 million and earnings per share of $1.35.

How much did RumbleOn's used retail Powersports revenue increase in 4Q 2021?

Used retail Powersports revenue increased by 164% in the fourth quarter of 2021.

What was RumbleOn's full year revenue for 2021?

RumbleOn achieved full-year pro forma revenue of $1,586.1 million.

What was RumbleOn's pro forma adjusted EBITDA for 2021?

RumbleOn's pro forma adjusted EBITDA for 2021 was $117.4 million.

When is RumbleOn's management conference call to discuss financial results?

RumbleOn's management conference call is scheduled for March 16, 2022, at 8:30 am ET.