RumbleOn Reports Third Quarter 2022 Financial Results
RumbleOn reports Q3 2022 revenue of $470.3 million, with a gross profit of $116.3 million.
The Powersports Segment generated $385.4 million, while the Automotive Segment saw a revenue decline to $70.0 million.
Net income stood at $3.0 million or $0.19 per diluted share. Adjusted EBITDA was $25.7 million.
Full-year revenue outlook revised to $1.85 to $1.90 billion, primarily due to expected growth in Powersports.
- Total revenue increased by 113% year-over-year.
- Powersports segment revenue outlook raised to at least $1.5 billion.
- Cash and cash equivalents of $49.2 million indicate financial stability.
- Strong demand for Powersports despite seasonal impacts.
- Total revenue declined by 13.9% sequentially.
- Automotive segment revenue dropped by 39.5% sequentially.
- Gross profit margin decreased to 24.7%, down 60 bps.
- Net income decreased by 78.3% sequentially.
-
Delivers Total Company Revenue of
$470.3 million $116.3 million
- Announces decision to explore strategic alternatives for the Automotive business
-
Increased Powersports Segment FY 2022 revenue outlook to at least
$1.5 billion
Financial and Operational Highlights for the Third Quarter 2022
- Total Unit Sales of 19,908 across Powersports and Automotive Segments impacted by expected third quarter seasonality in the Powersports Segment and deceleration in the Automotive Segment
- Total Powersports Unit Sales of 18,393 with Used Powersports Units of 8,420 resulting in New:Used ratio of 1.18x demonstrating continued progression towards our target New:Used ratio of 1.0x
-
Powersports Segment Revenue of
$385.4 million 82% of Total Company Revenue of$470.3 million
-
Powersports Segment Gross Profit of
$111.0 million 95% of Total Company Gross Profit of$116.3 million 24.7% declined 60 bps sequentially
-
Automotive Segment Revenue of
$70.0 million $1.9 million
-
Net Income of
$3.0 million $0.19
-
Excluding charges and credits but including stock-based compensation expense, Adjusted Net Income of
$4.4 million $0.27
-
Adjusted EBITDA of
$25.7 million
-
Significant financial flexibility with cash and cash equivalents, including restricted cash, of
$49.2 million $193.8 million September 30, 2022 ; incremental liquidity from used Powersports inventory financing credit facility of$75.0 million October 26, 2022
- Reached a global settlement of all current and any potential or future claims with the former owners of RideNow
Management Commentary
"As of
Third Quarter 2022 — Summary Financial Results
Reconciliation of GAAP to non-GAAP financial measures are provided in accompanying financial schedules.
Unless otherwise noted, all comparisons in the narrative are on a sequential basis for the three months ended
|
(Unaudited) |
|||||||||||||||||
$ in millions except per share amounts |
Three Months Ended |
|
Change |
|||||||||||||||
|
|
|
|
|
|
|
Sequential |
|
Year-over-Year |
|||||||||
Total Unit Sales (#) |
|
19,908 |
|
|
|
23,330 |
|
|
|
5,711 |
|
|
(14.7 |
)% |
|
249 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Revenue |
$ |
470.3 |
|
|
$ |
546.1 |
|
|
$ |
221.2 |
|
|
(13.9 |
)% |
|
113 |
% |
|
Gross Profit |
$ |
116.3 |
|
|
$ |
138.0 |
|
|
$ |
37.4 |
|
|
(15.7 |
)% |
|
211 |
% |
|
Gross Profit Margin |
|
24.7 |
% |
|
|
25.3 |
% |
|
|
16.9 |
% |
|
(60) bps |
|
780 bps |
|||
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Income (Loss) |
$ |
3.0 |
|
|
$ |
14.0 |
|
|
$ |
(22.5 |
) |
|
(78.3 |
)% |
|
nm |
||
Diluted Earnings (Loss) per Share |
$ |
0.19 |
|
|
$ |
0.87 |
|
|
$ |
(3.25 |
) |
|
(78.2 |
)% |
|
nm |
||
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA |
$ |
25.7 |
|
|
$ |
44.3 |
|
|
$ |
3.6 |
|
|
(42.1 |
)% |
|
614 |
% |
|
Adjusted EBITDA Margin |
|
5.5 |
% |
|
|
8.1 |
% |
|
|
1.6 |
% |
|
(260) bps |
|
390 bps |
|||
Adjusted Net Income (Loss) |
$ |
4.4 |
|
|
$ |
19.3 |
|
|
$ |
(35.0 |
) |
|
(77.2 |
)% |
|
nm |
||
Adjusted Diluted Earnings (Loss) per Share |
$ |
0.27 |
|
|
$ |
1.20 |
|
|
$ |
(5.04 |
) |
|
(77.5 |
)% |
|
nm |
||
nm = not meaningful |
||||||||||||||||||
Total Unit Sales of 19,908 units declined (14.7)%, driven by the Company's strategic decision to purchase fewer automotive units during the quarter, combined with the anticipated seasonal impact experienced in Powersports. The Powersports Segment made up approximately
Total Revenue of
Gross Profit of
Operating Expenses were
Net Income was
Adjusted Net Income was
Adjusted EBITDA was
Cash and Cash Equivalents as of
Cash Flow from Operating Activities was
Weighted Average Basic Shares of Class B common stock outstanding were 16,020,296 and Weighted Average Diluted Shares of Class B common stock outstanding were 16,067,395. As of
Full Year 2022 — Financial Outlook
-
Total Company Revenue within the range of
$1.85 $1.90 billion -
Powersports Segment revenue of at least
$1.50 billion Total Company revenue outlook implied a revenue outlook of$1.45 billion -
Non-Powersports Segments (Automotive & Vehicle Logistics) revenue within the range of
$350 $400 million $500 million
-
Powersports Segment revenue of at least
-
Adjusted EBITDA of at least
$125 million
Expected performance expectations in the Powersports Segment include the following assumptions: growth in Used Retail Powersports Units to be in excess of
"
Third Quarter 2022 — Segment Results
Unless otherwise noted, all comparisons are on a sequential basis for the three months ended
Powersports Segment |
|||||||||||||||
|
(Unaudited) |
||||||||||||||
$ in millions except per unit |
Three Months Ended |
|
Change |
||||||||||||
|
|
|
|
|
|
|
Sequential |
|
Year-over-Year |
||||||
Unit Sales (#) |
|
|
|
|
|
|
|
|
|
||||||
New |
|
9,973 |
|
|
11,366 |
|
|
2,485 |
|
(12.3 |
)% |
|
301 |
% |
|
Used |
|
8,420 |
|
|
9,347 |
|
|
3,005 |
|
(9.9 |
)% |
|
180 |
% |
|
Total Powersports Unit Sales |
|
18,393 |
|
|
20,713 |
|
|
5,490 |
|
(11.2 |
)% |
|
235 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue |
|
|
|
|
|
|
|
|
|
||||||
New |
$ |
177.6 |
|
$ |
184.1 |
|
$ |
42.9 |
|
(3.5 |
)% |
|
314 |
% |
|
Used |
$ |
113.9 |
|
$ |
128.6 |
|
$ |
40.3 |
|
(11.4 |
)% |
|
183 |
% |
|
Finance & Insurance, net |
$ |
31.7 |
|
$ |
36.8 |
|
$ |
6.2 |
|
(13.9 |
)% |
|
411 |
% |
|
Parts, Services, and Accessories |
$ |
62.2 |
|
$ |
65.3 |
|
$ |
16.1 |
|
(4.7 |
)% |
|
286 |
% |
|
Total Powersports Revenue |
$ |
385.4 |
|
$ |
414.8 |
|
$ |
105.5 |
|
(7.1 |
)% |
|
265 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross Profit |
|
|
|
|
|
|
|
|
|
||||||
New |
$ |
32.1 |
|
$ |
37.3 |
|
$ |
8.1 |
|
(13.9 |
)% |
|
296 |
% |
|
Used |
$ |
18.1 |
|
$ |
24.5 |
|
$ |
6.9 |
|
(26.1 |
)% |
|
162 |
% |
|
Finance & Insurance, net |
$ |
31.7 |
|
$ |
36.8 |
|
$ |
6.2 |
|
(14.1 |
)% |
|
411 |
% |
|
Parts, Services, and Accessories |
$ |
29.1 |
|
$ |
31.4 |
|
$ |
7.2 |
|
(7.1 |
)% |
|
304 |
% |
|
Total Powersports Gross Profit |
$ |
111.0 |
|
$ |
130.0 |
|
$ |
28.4 |
|
(14.7 |
)% |
|
291 |
% |
|
Powersports GPU1 |
$ |
4,681 |
|
$ |
4,938 |
|
$ |
5,542 |
|
(5.2 |
)% |
|
(16 |
)% |
|
1 Powersports GPU represents powersports gross profit per retail vehicle. “Powersports GPU” is the gross profit attributable to powersports vehicles sold, inclusive of finance & insurance, net, divided by retail powersports units sold. Note that Powersports GPU excludes gross profit from Parts, Services, and Accessories. |
nm = not meaningful |
Used Powersports Units, which includes used retail and wholesale Powersports Units, declined (9.9)% sequentially. Sequential declines are primarily the result of third quarter seasonality.
Used Powersports Revenue declined (11.4)% sequentially due to anticipated seasonality. Used Powersports Gross Profit declined (26.1)% sequentially due primarily to modest mix shift towards wholesale in the quarter, and input cost inflation.
New Powersports Revenue declined (3.5)% sequentially, despite a (12.3)% reduction in unit sales, driven by increased supply of new inventory and favorable price mix in consumer demand. New Powersports Gross Profit declined (13.9)% sequentially due primarily to higher inventory acquisition costs.
Powersports GPU was
Automotive Segment |
|||||||||||||||
|
(Unaudited) |
||||||||||||||
$ in millions |
Three-Months Ended |
|
Change |
||||||||||||
|
|
|
|
|
|
|
Sequential |
|
Year-over-Year |
||||||
Automotive Unit Sales (#) |
|
1,515 |
|
|
2,617 |
|
|
3,028 |
|
(42.1 |
)% |
|
(50.0 |
)% |
|
Automotive Revenue |
$ |
70.0 |
|
$ |
115.7 |
|
$ |
105.3 |
|
(39.5 |
)% |
|
(33.5 |
)% |
|
Automotive Gross Profit |
$ |
1.9 |
|
$ |
4.7 |
|
$ |
6.5 |
|
(60.2 |
)% |
|
(70.8 |
)% |
|
Revenue from the Automotive Segment declined (
Gross Profit was down due to a decrease in unit sales and high wholesale costs.
Vehicle Logistics Segment |
|||||||||||||||
|
(Unaudited) |
||||||||||||||
$ in millions |
Three-Months Ended |
|
Change |
||||||||||||
|
|
|
|
|
|
|
Sequential |
|
Year-over-Year |
||||||
Vehicles Transported (#) |
|
23,992 |
|
|
25,472 |
|
|
20,284 |
|
(5.8 |
)% |
|
18.3 |
% |
|
Vehicle Logistics Revenue |
$ |
15.5 |
|
$ |
16.6 |
|
$ |
11.6 |
|
(6.6 |
)% |
|
33.6 |
% |
|
Vehicle Logistics Gross Profit |
$ |
3.6 |
|
$ |
3.2 |
|
$ |
2.5 |
|
12.5 |
% |
|
44.0 |
% |
|
Revenue from the Vehicle Logistics Segment was down (6.6)% sequentially, driven by a decline in the number of vehicles transported and slight decline in revenue per vehicle transported to
Gross profit for this segment was up sequentially, driven by an
Conference Call Details
About
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
Use of Non-GAAP Financial Measures
As required by the rules of the
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income (loss), and Adjusted net income (loss) margin 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
Adjusted EBITDA is defined as net income (loss) adjusted to add back interest expense (including debt extinguishment), depreciation and amortization, changes in derivative liability, non-cash stock-based compensation costs, transaction 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.
Adjusted net income (loss) is defined as net income (loss) adjusted to add back stock based compensation, transaction costs, purchase accounting adjustments and other non-recurring costs which include items not indicative of our ongoing operating performance.
With respect to our 2022 adjusted EBITDA target, a reconciliation of this non-GAAP measure to the corresponding GAAP measure is not available without unreasonable effort due to the complexity of the reconciling items that we exclude from this non-GAAP measure.
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(Unaudited) |
||||||||
(Dollars in thousands; except per share amounts) |
||||||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash |
|
$ |
39,715 |
|
|
$ |
48,974 |
|
Restricted cash |
|
|
9,500 |
|
|
|
3,000 |
|
Accounts receivable, net |
|
|
35,394 |
|
|
|
40,166 |
|
Inventory |
|
|
323,832 |
|
|
|
201,666 |
|
Prepaid expense and other current assets |
|
|
7,079 |
|
|
|
6,335 |
|
Total current assets |
|
|
415,520 |
|
|
|
300,141 |
|
Property and equipment, net |
|
|
77,091 |
|
|
|
21,417 |
|
Right-of-use assets |
|
|
161,171 |
|
|
|
133,112 |
|
|
|
|
266,059 |
|
|
|
260,922 |
|
Intangible assets, net |
|
|
352,880 |
|
|
|
302,066 |
|
Other assets |
|
|
31,861 |
|
|
|
10,091 |
|
Total assets |
|
|
1,304,582 |
|
|
|
1,027,749 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable and accrued liabilities |
|
|
76,266 |
|
|
|
57,068 |
|
Vehicle floor plan note payable |
|
|
175,296 |
|
|
|
97,278 |
|
Current portion of lease liabilities |
|
|
23,324 |
|
|
|
20,249 |
|
Current portion of long-term, convertible debts, and notes payable |
|
|
3,645 |
|
|
|
4,476 |
|
Total current liabilities |
|
|
278,531 |
|
|
|
179,071 |
|
Long-term liabilities: |
|
|
|
|
||||
Senior secured note |
|
|
330,752 |
|
|
|
253,438 |
|
Convertible debt, net |
|
|
31,185 |
|
|
|
29,242 |
|
Line of credit and notes payable |
|
|
22,925 |
|
|
|
150 |
|
Operating lease liabilities |
|
|
126,941 |
|
|
|
114,687 |
|
Deferred tax liabilities |
|
|
15,147 |
|
|
|
7,586 |
|
Other long-term liabilities |
|
|
7,494 |
|
|
|
11,930 |
|
Total long-term liabilities |
|
|
534,444 |
|
|
|
417,033 |
|
Total liabilities |
|
|
812,975 |
|
|
|
596,104 |
|
Commitments and contingencies (Notes 2, 5, 8, and 10) |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common A stock, |
|
|
0 |
|
|
|
0 |
|
Class B stock, |
|
|
16 |
|
|
|
15 |
|
Additional paid-in capital |
|
|
583,803 |
|
|
|
550,055 |
|
Accumulated deficit |
|
|
(87,893 |
) |
|
|
(114,106 |
) |
Class B stock in treasury, at cost, 123,089 shares as of |
|
|
(4,319 |
) |
|
|
(4,319 |
) |
Total stockholders’ equity |
|
|
491,607 |
|
|
|
431,645 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,304,582 |
|
|
$ |
1,027,749 |
|
|
|||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(Dollars in thousands, except per share amounts) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Vehicles sales |
|
|
|
|
|
|
|
||||||||
Powersports |
$ |
291,491 |
|
|
$ |
83,292 |
|
|
$ |
858,809 |
|
|
$ |
121,307 |
|
Automotive |
|
69,974 |
|
|
|
105,298 |
|
|
|
296,433 |
|
|
|
316,655 |
|
Parts, service and accessories |
|
62,217 |
|
|
|
16,075 |
|
|
|
182,269 |
|
|
|
16,075 |
|
Finance and insurance, net |
|
31,588 |
|
|
|
6,180 |
|
|
|
95,906 |
|
|
|
6,998 |
|
Vehicle logistics |
|
15,002 |
|
|
|
10,369 |
|
|
|
42,870 |
|
|
|
32,788 |
|
Total revenue |
|
470,272 |
|
|
|
221,214 |
|
|
|
1,476,287 |
|
|
|
493,823 |
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
Powersports |
|
241,246 |
|
|
|
68,295 |
|
|
|
700,317 |
|
|
|
97,193 |
|
Automotive |
|
68,091 |
|
|
|
98,773 |
|
|
|
286,243 |
|
|
|
293,751 |
|
Parts, service and accessories |
|
33,073 |
|
|
|
8,845 |
|
|
|
96,473 |
|
|
|
8,845 |
|
Vehicle logistics |
|
11,516 |
|
|
|
7,914 |
|
|
|
33,732 |
|
|
|
25,958 |
|
Total cost of revenue |
|
353,926 |
|
|
|
183,827 |
|
|
|
1,116,765 |
|
|
|
425,747 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
|
116,346 |
|
|
|
37,387 |
|
|
|
359,522 |
|
|
|
68,076 |
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative |
|
96,185 |
|
|
|
61,507 |
|
|
|
274,416 |
|
|
|
93,020 |
|
Insurance recovery |
|
— |
|
|
|
(3,135 |
) |
|
|
— |
|
|
|
(3,135 |
) |
Depreciation and amortization |
|
6,570 |
|
|
|
1,717 |
|
|
|
16,923 |
|
|
|
2,948 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
13,591 |
|
|
|
(22,702 |
) |
|
|
68,183 |
|
|
|
(24,757 |
) |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(12,603 |
) |
|
|
(4,577 |
) |
|
|
(37,059 |
) |
|
|
(8,107 |
) |
Other income (expense) |
|
38 |
|
|
|
— |
|
|
|
287 |
|
|
|
— |
|
Change in derivative liability |
|
— |
|
|
|
(6,518 |
) |
|
|
39 |
|
|
|
(8,774 |
) |
PPP loan forgiveness |
|
2,509 |
|
|
|
572 |
|
|
|
2,509 |
|
|
|
572 |
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before provision for income taxes |
|
3,535 |
|
|
|
(33,225 |
) |
|
|
33,959 |
|
|
|
(41,066 |
) |
|
|
|
|
|
|
|
|
||||||||
Income tax provision (benefit) |
|
496 |
|
|
|
(10,681 |
) |
|
|
7,746 |
|
|
|
(10,681 |
) |
Net income (loss) |
$ |
3,039 |
|
|
$ |
(22,544 |
) |
|
$ |
26,213 |
|
|
$ |
(30,385 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding - basic |
|
16,020,296 |
|
|
|
6,939,708 |
|
|
|
15,859,134 |
|
|
|
4,178,932 |
|
Earnings (loss) per share - basic |
$ |
0.19 |
|
|
$ |
(3.25 |
) |
|
$ |
1.65 |
|
|
$ |
(7.27 |
) |
Weighted average number of common shares outstanding - diluted |
|
16,067,395 |
|
|
|
6,939,708 |
|
|
|
15,922,484 |
|
|
|
4,178,932 |
|
Earnings (loss) per share - diluted |
$ |
0.19 |
|
|
$ |
(3.25 |
) |
|
$ |
1.65 |
|
|
$ |
(7.27 |
) |
|
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(Unaudited) |
||||||||
(Dollars in thousands) |
||||||||
|
Nine Months Ended |
|||||||
|
2022 |
|
2021 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|||||
Net income (loss) |
$ |
26,213 |
|
|
$ |
(30,385 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
16,923 |
|
|
|
2,948 |
|
|
Amortization of debt discount |
|
3,936 |
|
|
|
2,284 |
|
|
Forgiveness of PPP loan |
|
(2,509 |
) |
|
|
(572 |
) |
|
Stock based compensation expense |
|
7,237 |
|
|
|
27,165 |
|
|
(Gain) loss from change in value of derivatives |
|
(39 |
) |
|
|
8,774 |
|
|
Deferred taxes |
|
3,946 |
|
|
|
(10,969 |
) |
|
Changes in finance receivable related assets and liabilities: |
|
|
|
|||||
Proceeds from ROF credit facility for the purchase of consumer finance loans |
|
22,925 |
|
|
|
— |
|
|
Originations of finance receivables, net of principal payments received |
|
(23,676 |
) |
|
|
— |
|
|
Changes in operating assets and liabilities, excluding impact of acquisitions: |
|
|
|
|||||
Accounts receivable |
|
5,964 |
|
|
|
(6,476 |
) |
|
Inventory |
|
(97,357 |
) |
|
|
(33,343 |
) |
|
Prepaid expenses and other current assets |
|
(330 |
) |
|
|
486 |
|
|
Other assets |
|
(3,779 |
) |
|
|
(3,452 |
) |
|
Other liabilities |
|
(2,471 |
) |
|
|
1,406 |
|
|
Accounts payable and accrued liabilities |
|
8,927 |
|
|
|
16,306 |
|
|
Floor plan trade note borrowings |
|
38,746 |
|
|
|
(3,951 |
) |
|
Net cash provided by (used in) operating activities |
|
4,656 |
|
|
|
(29,779 |
) |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|||||
Acquisitions, net of cash received |
|
(65,976 |
) |
|
|
(365,946 |
) |
|
Purchase of property and equipment |
|
(4,334 |
) |
|
|
(7,613 |
) |
|
Technology development |
|
(6,188 |
) |
|
|
(1,266 |
) |
|
Net cash used in investing activities |
|
(76,498 |
) |
|
|
(374,825 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|||||
Proceeds from new secured debt |
|
84,500 |
|
|
|
261,451 |
|
|
Repayment of debt and mortgage notes |
|
(34,235 |
) |
|
|
— |
|
|
Repayments of (proceeds from) issuance of notes |
|
(2,116 |
) |
|
|
(7,974 |
) |
|
Increase in borrowings from non-trade floor plans |
|
20,934 |
|
|
|
27,688 |
|
|
Net proceeds from sale of common stock |
|
— |
|
|
|
191,240 |
|
|
Net cash provided by financing activities |
|
69,083 |
|
|
|
472,405 |
|
|
NET CHANGE IN CASH |
|
(2,759 |
) |
|
|
67,801 |
|
|
Cash and restricted cash at beginning of period |
|
51,974 |
|
|
|
3,516 |
|
|
Cash and restricted cash at end of period |
$ |
49,215 |
|
|
$ |
71,317 |
|
|
|
||||||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||||
Net income (loss) |
$ |
3,039 |
|
|
$ |
14,033 |
|
|
$ |
(22,544 |
) |
|
$ |
26,213 |
|
|
$ |
(30,385 |
) |
|
Add back: |
|
|
|
|
|
|
|
|
|
|||||||||||
Interest expense |
|
12,603 |
|
|
|
13,275 |
|
|
|
4,577 |
|
|
|
37,059 |
|
|
|
8,107 |
|
|
Depreciation and amortization |
|
6,570 |
|
|
|
5,879 |
|
|
|
1,717 |
|
|
|
16,923 |
|
|
|
2,948 |
|
|
Interest income and miscellaneous income |
|
(38 |
) |
|
|
(249 |
) |
|
|
— |
|
|
|
(287 |
) |
|
|
— |
|
|
Income tax provision |
|
496 |
|
|
|
4,870 |
|
|
|
(10,681 |
) |
|
|
7,746 |
|
|
|
(10,681 |
) |
|
EBITDA |
|
22,670 |
|
|
|
37,808 |
|
|
|
(26,931 |
) |
|
|
87,654 |
|
|
|
(30,011 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||||
Stock based compensation |
|
2,605 |
|
|
|
2,753 |
|
|
|
24,730 |
|
|
|
7,237 |
|
|
|
26,457 |
|
|
Transaction costs - RideNow and Freedom |
|
100 |
|
|
|
687 |
|
|
|
1,558 |
|
|
|
1,503 |
|
|
|
3,515 |
|
|
Purchase accounting related |
|
177 |
|
|
|
592 |
|
|
|
— |
|
|
|
769 |
|
|
|
— |
|
|
PPP Loan forgiveness |
|
(2,509 |
) |
|
|
— |
|
|
|
(572 |
) |
|
|
(2,509 |
) |
|
|
(572 |
) |
|
Insurance proceeds |
|
— |
|
|
|
— |
|
|
|
(3,135 |
) |
|
|
— |
|
|
|
(3,135 |
) |
|
Other non-recurring costs |
|
2,393 |
|
|
|
2,479 |
|
|
|
1,448 |
|
|
|
6,568 |
|
|
|
1,651 |
|
|
Costs attributable to store openings and closures |
|
233 |
|
|
|
|
|
— |
|
|
|
233 |
|
|
|
— |
|
|||
Change in derivative and warrant liabilities |
|
— |
|
|
|
|
|
6,518 |
|
|
|
(39 |
) |
|
|
8,774 |
|
|||
Adjusted EBITDA |
$ |
25,669 |
|
|
$ |
44,319 |
|
|
$ |
3,616 |
|
|
$ |
101,416 |
|
|
$ |
6,679 |
|
|
Adjusted EBITDA Margin |
|
5.5 |
% |
|
|
8.1 |
% |
|
|
1.6 |
% |
|
|
6.9 |
% |
|
|
1.4 |
% |
|
For the three and nine months ended
- Non-cash stock-based compensation expense as reported in the Condensed Consolidated Statement of Operations,
- Acquisition costs associated with the RideNow Transaction and Freedom Transactions, which primarily include professional fees and third-party costs,
- Purchase accounting adjustments, which represent one-time expenses related to the Freedom Transaction and RideNow Transaction,
- Forgiveness of the PPP loan, and
-
Other non-recurring costs, which include one-time expenses incurred. For the three and nine months ended
September 30, 2022 and three months endedJune 30, 2022 , the balance was primarily comprised of integration costs and professional fees associated with the RideNow and Freedom Transactions, technology implementation, legal matters, and establishment of the RumbleOn Finance (ROF) secured loan facility. For the three and nine-months endedSeptember 30, 2021 , the balance was primarily related to litigation expenses.
|
||||||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and |
||||||||||||||||||||
Earnings (Loss) per share to Adjusted Earnings (Loss) per share |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
(Dollars in thousands, except per share amounts) |
||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||||
Net income (loss) |
$ |
3,039 |
|
|
$ |
14,033 |
|
|
$ |
(22,544 |
) |
|
$ |
26,213 |
|
|
$ |
(30,385 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||||
Stock based compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Transaction costs - RideNow and Freedom |
|
100 |
|
|
|
687 |
|
|
|
1,558 |
|
|
|
1,503 |
|
|
|
3,515 |
|
|
PPP Loan forgiveness |
|
(2,509 |
) |
|
|
— |
|
|
|
(572 |
) |
|
|
(2,509 |
) |
|
|
(572 |
) |
|
Purchase accounting related |
|
2,456 |
|
|
|
3,881 |
|
|
|
— |
|
|
|
6,359 |
|
|
|
— |
|
|
Insurance proceeds |
|
— |
|
|
|
— |
|
|
|
(3,135 |
) |
|
|
— |
|
|
|
(3,135 |
) |
|
Other non-recurring costs |
|
2,625 |
|
|
|
2,479 |
|
|
|
1,448 |
|
|
|
6,796 |
|
|
|
1,481 |
|
|
Less: Income tax expense |
|
(1,311 |
) |
|
|
(1,804 |
) |
|
|
(11,712 |
) |
|
|
(4,269 |
) |
|
|
(12,242 |
) |
|
Adjusted Net Income (Loss) |
$ |
4,400 |
|
|
$ |
19,276 |
|
|
$ |
(34,957 |
) |
|
$ |
34,093 |
|
|
$ |
(41,338 |
) |
|
Adjusted Net Income (Loss) Margin |
|
0.9 |
% |
|
|
3.5 |
% |
|
|
(15.8 |
) % |
|
|
2.3 |
% |
|
|
(8.4 |
) % |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average number of common shares outstanding - basic |
|
16,020,296 |
|
|
|
16,059,288 |
|
|
|
6,939,708 |
|
|
|
15,859,134 |
|
|
|
4,178,932 |
|
|
Earnings (loss) per share - basic |
$ |
0.19 |
|
|
$ |
0.87 |
|
|
$ |
(3.25 |
) |
|
$ |
1.65 |
|
|
$ |
(7.27 |
) |
|
Adjusted Earnings (loss) per share - basic |
$ |
0.27 |
|
|
$ |
1.20 |
|
|
$ |
(5.04 |
) |
|
$ |
2.15 |
|
|
$ |
(9.89 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average number of common shares outstanding - diluted |
|
16,067,395 |
|
|
|
16,095,862 |
|
|
|
6,939,708 |
|
|
|
15,922,484 |
|
|
|
4,178,932 |
|
|
Earnings (loss) per share - diluted |
$ |
0.19 |
|
|
$ |
0.87 |
|
|
$ |
(3.25 |
) |
|
$ |
1.65 |
|
|
$ |
(7.27 |
) |
|
Adjusted Earnings (loss) per share - diluted |
$ |
0.27 |
|
|
$ |
1.20 |
|
|
$ |
(5.04 |
) |
|
$ |
2.14 |
|
|
$ |
(9.89 |
) |
|
For the three and nine months ended
- Acquisition costs associated with the RideNow transaction and Freedom transaction, which primarily include professional fees and third-party costs,
- Forgiveness of the PPP loan, and
-
Other non-recurring costs, which include one-time expenses incurred. For the three and nine months ended
September 30, 2022 and three months endedJune 30, 2022 , the balance was primarily comprised of integration costs and professional fees associated with the RideNow and Freedom Transactions, technology implementation, legal matters, and establishment of the RumbleOn Finance (ROF) secured loan facility. For the three and nine-months endedSeptember 30, 2021 , the balance was primarily related to litigation expenses.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221109005489/en/
Investor Relations Contact:
investors@rumbleon.com
Source:
FAQ
What was RumbleOn's revenue for Q3 2022?
How much did RumbleOn earn per share in Q3 2022?
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What factors impacted RumbleOn's Automotive Segment revenue?
What is RumbleOn's adjusted EBITDA for Q3 2022?
