RumbleOn Reports Third Quarter 2024 Financial Results
RumbleOn (NASDAQ: RMBL) reported Q3 2024 financial results showing revenue of $295.0 million, down 12.7% year-over-year. The company posted a net loss of $11.2 million, improved from a $16.5 million loss in Q3 2023. Key highlights include reduced SG&A expenses to $65.9 million, secured $30.0 million in new capital commitments, and generated operating cash inflows of $68.6 million for the first nine months. Total Powersports retail unit sales decreased 13.2% to 14,289 units, while Vehicle Transportation Services saw a 9.4% increase in vehicles transported.
RumbleOn (NASDAQ: RMBL) ha riportato i risultati finanziari del terzo trimestre 2024, con ricavi di 295,0 milioni di dollari, in calo del 12,7% rispetto all'anno precedente. L'azienda ha registrato una perdita netta di 11,2 milioni di dollari, migliorata rispetto a una perdita di 16,5 milioni di dollari nel terzo trimestre 2023. Tra i punti salienti ci sono la riduzione delle spese SG&A a 65,9 milioni di dollari, il raggiungimento di impegni di capitale per 30,0 milioni di dollari e la generazione di flussi di cassa operativi di 68,6 milioni di dollari nei primi nove mesi. Le vendite totali di unità Powersports al dettaglio sono diminuite del 13,2%, pari a 14.289 unità, mentre i Servizi di Trasporto Veicoli hanno registrato un incremento del 9,4% nel numero di veicoli trasportati.
RumbleOn (NASDAQ: RMBL) informó los resultados financieros del tercer trimestre de 2024, mostrando ingresos de 295,0 millones de dólares, una disminución del 12,7% interanual. La compañía registró una pérdida neta de 11,2 millones de dólares, mejorando desde una pérdida de 16,5 millones de dólares en el tercer trimestre de 2023. Los aspectos destacados incluyen la reducción de los gastos SG&A a 65,9 millones de dólares, la obtención de compromisos de capital por 30,0 millones de dólares y la generación de flujos de efectivo operativo de 68,6 millones de dólares en los primeros nueve meses. Las ventas totales de unidades de Powersports minoristas disminuyeron un 13,2% a 14.289 unidades, mientras que los Servicios de Transporte de Vehículos vieron un aumento del 9,4% en vehículos transportados.
RumbleOn (NASDAQ: RMBL)는 2024년 3분기 재무 결과를 보고하며 수익이 2억 9,500만 달러로 작년 대비 12.7% 감소했다고 발표했습니다. 이 회사는 1,120만 달러의 순손실을 기록했으며, 이는 2023년 3분기 1,650만 달러의 손실에서 개선된 것입니다. 주요 하이라이트로는 SG&A 비용이 6,590만 달러로 감소하고, 3,000만 달러의 새로운 자본 약정을 확보하였으며, 첫 9개월 동안 운영 현금 유입이 6,860만 달러를 생성한 점이 있습니다. 총 파워스포츠 소매 판매량은 13.2% 감소하여 14,289대에 달했으며, 차량 운송 서비스는 운송된 차량 수가 9.4% 증가했습니다.
RumbleOn (NASDAQ: RMBL) a annoncé les résultats financiers du troisième trimestre 2024, montrant un chiffre d'affaires de 295,0 millions de dollars, en baisse de 12,7 % par rapport à l'année précédente. L'entreprise a affiché une perte nette de 11,2 millions de dollars, améliorée par rapport à une perte de 16,5 millions de dollars au troisième trimestre 2023. Les points clés incluent une réduction des dépenses SG&A à 65,9 millions de dollars, l'obtention de nouveaux engagements de capital de 30,0 millions de dollars et la génération de flux de trésorerie d'exploitation de 68,6 millions de dollars pour les neuf premiers mois. Les ventes au détail totales d'unités Powersports ont diminué de 13,2 % pour atteindre 14 289 unités, tandis que les Services de Transport de Véhicules ont enregistré une augmentation de 9,4 % des véhicules transportés.
RumbleOn (NASDAQ: RMBL) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit Einnahmen von 295,0 Millionen US-Dollar, was einem Rückgang von 12,7% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete einen Nettverlust von 11,2 Millionen US-Dollar, der sich im Vergleich zu einem Verlust von 16,5 Millionen US-Dollar im dritten Quartal 2023 verbessert hat. Zu den wichtigsten Punkten gehören die Senkung der SG&A-Ausgaben auf 65,9 Millionen US-Dollar, die Sicherung von 30,0 Millionen US-Dollar an neuen Kapitalengagements und die Generierung von operativen Cashflows von 68,6 Millionen US-Dollar in den ersten neun Monaten. Die Gesamtverkäufe von Powersports-Einheiten im Einzelhandel sanken um 13,2% auf 14.289 Einheiten, während die Fahrzeugtransportsdienste einen Anstieg von 9,4% bei transportierten Fahrzeugen verzeichneten.
- Operating cash inflows improved to $68.6M from -$18.5M outflow in 2023
- Reduced Non-Vehicle Net Debt by $25.9M in first nine months
- Secured $30M in new capital commitments
- Decreased SG&A expenses by 22.5% to $65.9M
- Net loss improved by 32.1% to $11.2M from $16.5M
- Revenue declined 12.7% to $295.0M
- Gross profit decreased 19.2% to $74.3M
- Adjusted EBITDA fell 26.1% to $6.8M
- Total retail unit sales dropped 13.2%
- Pre-owned Powersports sales declined 19.0%
Insights
RumbleOn's Q3 2024 results reveal significant challenges, with revenue declining
- Retail unit sales down
13.2% - Gross profit margin contracted to
25.2% from27.2% - Adjusted EBITDA declined
26.1% to$6.8 million
The powersports industry is facing headwinds, reflected in RumbleOn's performance metrics. New unit sales declined
Key Third Quarter 2024 Highlights (Compared to Third Quarter 2023):
- Revenue of
$295.0 million 12.7% - Net loss totaled
$11.2 million $16.5 million - Selling, general & administrative expense (SG&A) was
$65.9 million $85.0 million - Adjusted EBITDA(1) of
$6.8 million 26.1%
Other Highlights:
- Received commitments for
$30.0 million $10 million - Executed term loan credit agreement amendment giving the business more flexibility to operate
- Engaged an investment bank to explore a refinancing of the Company's debt
- Reduced inventories by
$53.9 million $52.9 million - Operating cash inflows for the first nine months totaled
$68.6 million $18.5 million - Reduced Non-Vehicle Net Debt by
$25.9 million - Acquired a Harley-Davidson dealership in
Massachusetts in August 2024
"During the third quarter, our team navigated an incrementally more challenging environment and delivered strong performance on key areas of the business. Our goal communicated earlier this year to reduce new inventories by the end of 2024 is largely on track. Operating cash flows continue to significantly outperform compared to last year. Our SG&A as a percent of gross profit dollars has decreased, which evidences the increasing productivity of our operations, and we expect to drive continuous improvements in further cost optimization. I am incredibly proud of the team and their resilience in this tough environment. In addition, we have received significant support from our three largest shareholders, which aligns with our goal to deleverage our balance sheet and lower our cost of capital. We believe all of this is laying the groundwork for an improved 2025," stated Mike Kennedy, RumbleOn's CEO.
Third Quarter 2024 Results
Third Quarter | |||||
($ in millions) | 2024 | 2023 | YOY Change | ||
Revenue | $ 295.0 | $ 338.1 | (12.7) % | ||
Gross Profit | $ 74.3 | $ 92.0 | (19.2) % | ||
SG&A | $ 65.9 | $ 85.0 | (22.5) % | ||
Adjusted SG&A(1) | $ 64.3 | $ 82.1 | (21.7) % | ||
Operating Income (Loss) | $ 5.3 | $ (0.2) | NM | ||
Net Loss | $ (11.2) | $ (16.5) | 32.1 % | ||
Adjusted EBITDA(1) | $ 6.8 | $ 9.2 | (26.1) % | ||
Unit Retail Sales: | |||||
New Powersports | 9,740 | 10,851 | (10.2) % | ||
Pre-owned Powersports | 4,549 | 5,619 | (19.0) % | ||
Nine Months Ended September 30, | |||||
($ in millions) | 2024 | 2023 | YOY Change | ||
Operating Cash Flow | $ 68.6 | $ (18.5) | 470.8 % | ||
Capital Expenditures | $ (1.6) | $ (7.8) | 79.5 % | ||
Free Cash Flow(1) | $ 67.0 | $ (26.3) | 354.8 % | ||
Sep. 30, | Dec. 31, | ||||
2024 | 2023 | Change | |||
Cash (unrestricted) | $ 50.1 | $ 58.9 | (14.9) % | ||
Long-term Debt, including Current Maturities | $ 249.0 | $ 274.3 | (9.2) % | ||
Non-Vehicle Debt | $ 267.1 | $ 301.8 | (11.5) % | ||
Non-Vehicle Net Debt(1) | $ 217.0 | $ 242.9 | (10.7) % | ||
(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. |
Third Quarter 2024 — Segment Results
Powersports Segment | |||||
Third Quarter | |||||
$ in millions, except per unit | 2024 | 2023 | YOY Change | ||
Unit Sales (#) | |||||
Retail | |||||
New | 9,740 | 10,851 | (10.2) % | ||
Pre-owned | 4,549 | 5,619 | (19.0) % | ||
Total retail | 14,289 | 16,470 | (13.2) % | ||
Pre-owned wholesale | 1,059 | 1,103 | (4.0) % | ||
Total Powersports Unit Sales | 15,348 | 17,573 | (12.7) % | ||
Revenue | |||||
New | $ 147.1 | $ 159.6 | (7.8) % | ||
Pre-owned | 59.3 | 75.5 | (21.5) % | ||
Finance & Insurance, net | 24.3 | 29.3 | (17.1) % | ||
Parts, Services, and Accessories | 49.2 | 59.7 | (17.6) % | ||
Total Powersports Revenue | $ 279.9 | $ 324.1 | (13.6) % | ||
Gross Profit | |||||
New | $ 16.6 | $ 22.0 | (24.5) % | ||
Pre-owned | 7.2 | 10.3 | (30.1) % | ||
Finance & Insurance, net | 24.3 | 29.3 | (17.1) % | ||
Parts, Services, and Accessories | 22.7 | 27.0 | (15.9) % | ||
Total Powersports Gross Profit | $ 70.8 | $ 88.6 | (20.1) % | ||
Powersports GPU(1) | $ 4,955 | $ 5,380 | (7.9) % | ||
(1) | Calculated as total powersports gross profit divided by total retail units sold. |
Vehicle Transportation Services Segment | |||||
Third Quarter | |||||
($ in millions) | 2024 | 2023 | Change | ||
Vehicles Transported (#) | 25,084 | 22,930 | 9.4 % | ||
Vehicle Transportation Services Revenue | $ 15.1 | $ 14.0 | 7.9 % | ||
Vehicle Transportation Services Gross Profit | $ 3.5 | $ 3.4 | 2.9 % | ||
Investor Conference Call
RumbleOn's management will host a conference call to discuss these results on November 12, 2024 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. 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.
| |||||||
Three Months Ended Sep. 30, | Nine Months Ended Sep. 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue: | |||||||
Powersports vehicles | $ 206.4 | $ 235.1 | $ 656.2 | $ 738.1 | |||
Parts, service and accessories | 49.2 | 59.7 | 159.0 | 184.2 | |||
Finance and insurance, net | 24.3 | 29.3 | 79.8 | 89.7 | |||
Vehicle transportation services | 15.1 | 14.0 | 44.6 | 43.2 | |||
Total revenue | 295.0 | 338.1 | 939.6 | 1,055.2 | |||
Cost of revenue: | |||||||
Powersports vehicles | 182.6 | 202.8 | 571.8 | 634.1 | |||
Parts, service and accessories | 26.5 | 32.7 | 86.5 | 99.5 | |||
Vehicle transportation services | 11.6 | 10.6 | 34.5 | 32.9 | |||
Total cost of revenue | 220.7 | 246.1 | 692.8 | 766.5 | |||
Gross profit | 74.3 | 92.0 | 246.8 | 288.7 | |||
Selling, general and administrative | 65.9 | 85.0 | 211.2 | 271.6 | |||
Depreciation and amortization | 3.1 | 7.2 | 9.7 | 17.2 | |||
Operating income (loss) | 5.3 | (0.2) | 25.9 | (0.1) | |||
Other income (expense): | |||||||
Floor plan interest expense | (4.4) | (3.9) | (12.7) | (9.8) | |||
Other interest expense, net | (12.2) | (16.0) | (36.2) | (46.0) | |||
Other income | 0.1 | 0.1 | 0.4 | 0.2 | |||
Total other expense | (16.5) | (19.8) | (48.5) | (55.6) | |||
Loss from continuing operations before income taxes | (11.2) | (20.0) | (22.6) | (55.7) | |||
Income tax benefit | — | (3.5) | (0.4) | (9.7) | |||
Loss from continuing operations | $ (11.2) | $ (16.5) | $ (22.2) | $ (46.0) | |||
Loss from discontinued operations | — | — | — | (1.0) | |||
Net loss | $ (11.2) | $ (16.5) | $ (22.2) | $ (47.0) | |||
Weighted average shares-basic and diluted | 35.3 | 16.7 | 35.2 | 16.5 | |||
Loss from continuing operations per share - basic and diluted | $ (0.32) | $ (0.99) | $ (0.63) | $ (2.80) | |||
Net loss per share - basic and diluted | $ (0.32) | $ (0.99) | $ (0.63) | $ (2.86) | |||
Common shares outstanding, net of treasury stock, at period end | 35.4 | 16.8 | 35.4 | 16.8 | |||
RumbleOn, Inc. | ||||
(Unaudited) | ||||
Sep. 30, 2024 | Dec. 31, 2023 | |||
ASSETS | ||||
Current assets: | ||||
Cash | $ 50.1 | $ 58.9 | ||
Restricted cash | 16.6 | 18.1 | ||
Accounts receivable, net | 30.0 | 50.3 | ||
Inventory | 293.7 | 347.5 | ||
Prepaid expense and other current assets | 4.2 | 6.0 | ||
Total current assets | 394.6 | 480.8 | ||
Property and equipment, net | 71.5 | 76.8 | ||
Right-of-use assets | 161.4 | 163.9 | ||
Franchise rights and other intangible assets | 201.5 | 203.3 | ||
Other assets | 1.5 | 1.5 | ||
Total assets | $ 830.5 | $ 926.3 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Accounts payable and other current liabilities | $ 70.2 | $ 68.1 | ||
Vehicle floor plan notes payable | 242.5 | 291.3 | ||
Current portion of long-term debt | 39.2 | 35.6 | ||
Total current liabilities | 351.9 | 395.0 | ||
Long-term liabilities: | ||||
Long-term debt | 209.8 | 238.7 | ||
Operating lease liabilities | 133.2 | 134.1 | ||
Other long-term liabilities, including finance lease obligation | 52.3 | 52.9 | ||
Total long-term liabilities | 395.3 | 425.7 | ||
Total liabilities | 747.2 | 820.7 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Additional paid-in capital | 691.1 | 701.0 | ||
Accumulated deficit | (603.5) | (591.1) | ||
Treasury stock | (4.3) | (4.3) | ||
Total stockholders' equity | 83.3 | 105.6 | ||
Total liabilities and stockholders' equity | $ 830.5 | $ 926.3 | ||
RumbleOn, Inc. | |||
Nine Months Ended Sep. 30, | |||
2024 | 2023 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | $ (22.2) | $ (47.0) | |
Loss from discontinued operations | — | (1.0) | |
Loss from continuing operations | (22.2) | (46.0) | |
Adjustments to reconcile loss from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 9.7 | 17.2 | |
Amortization of debt issuance costs | 6.9 | 7.3 | |
Stock-based compensation | 3.9 | 10.9 | |
Deferred taxes | (0.4) | (10.1) | |
Gain on partial termination of warehouse lease | (0.9) | — | |
Interest paid-in-kind capitalized in debt principal | 0.7 | — | |
Valuation allowance charge for loan receivable assets | — | 6.0 | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 20.3 | (0.7) | |
Inventory | 54.7 | (30.0) | |
Prepaid expenses and other assets | 1.8 | 2.0 | |
Other liabilities | 2.8 | 1.5 | |
Accounts payable and accrued liabilities | 1.7 | 4.6 | |
Floor plan trade note borrowings | (10.4) | 18.8 | |
Net cash provided by (used in) operating activities | 68.6 | (18.5) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Acquisitions, net of cash received | (0.7) | (3.3) | |
Purchase of property and equipment | (1.6) | (7.8) | |
Technology development | (0.4) | (1.7) | |
Net cash used in investing activities | (2.7) | (12.8) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repayment of debt | (35.5) | (59.0) | |
Increase (decrease) in borrowings from non-trade floor plans | (39.3) | 46.0 | |
Proceeds from sale-leaseback transaction | — | 49.7 | |
Shares redeemed for employee tax obligations | — | (0.9) | |
Debt issuance costs | (1.1) | (1.8) | |
Other financing | (0.3) | — | |
Net cash provided by (used in) financing activities | (76.2) | 34.0 | |
Net cash used in discontinued operations | — | (1.8) | |
NET CHANGE IN CASH | (10.3) | 0.9 | |
Cash and restricted cash at beginning of period | 77.0 | 58.6 | |
Cash and restricted cash at end of period | $ 66.7 | $ 59.5 | |
RumbleOn, Inc.
Non-GAAP Measures
(Unaudited)
($ in millions)
EBITDA and Adjusted EBITDA
We define EBITDA as net loss adjusted to add back interest expense, the impact of 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, 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, as 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:
Third Quarter | First Nine Months | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net loss (GAAP) | $ (11.2) | $ (16.5) | $ (22.2) | $ (47.0) | |||
Loss from discontinued operations | — | — | — | (1.0) | |||
Loss from continuing operations | (11.2) | (16.5) | (22.2) | (46.0) | |||
Add back: | |||||||
Floor plan interest expense | 4.4 | 3.9 | 12.7 | 9.8 | |||
Other interest expense | 12.2 | 16.0 | 36.2 | 46.0 | |||
Depreciation and amortization | 3.1 | 7.2 | 9.7 | 17.2 | |||
Income tax benefit | — | (3.5) | (0.4) | (9.7) | |||
EBITDA (non-GAAP) | 8.5 | 7.1 | 36.0 | 17.3 | |||
Adjustments: | |||||||
Floor plan interest expense | (4.4) | (3.9) | (12.7) | (9.8) | |||
Stock-based compensation | 1.1 | 3.1 | 3.9 | 10.9 | |||
Lease expense associated with favorable related party leases in excess of contractual lease payments | 0.3 | 0.2 | 0.8 | 0.8 | |||
Other non-recurring costs(1) | 1.3 | 1.1 | 2.6 | 2.1 | |||
Personnel restructuring costs(2) | — | 0.6 | 0.1 | 5.3 | |||
Proxy contest and Board reorganization charges | — | 0.4 | — | 5.1 | |||
Loss associated with ROF loan receivables(3) | — | 0.6 | — | 6.0 | |||
Adjusted EBITDA (non-GAAP) | $ 6.8 | $ 9.2 | $ 30.7 | $ 37.7 | |||
(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 view 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:
Nine Months Ended Sep. 30, | |||
2024 | 2023 | ||
Cash flows from operating activities (GAAP) | $ 68.6 | $ (18.5) | |
Less: | |||
Capital expenditures | (1.6) | (7.8) | |
Free Cash Flow (non-GAAP) | $ 67.0 | $ (26.3) | |
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 Sep. 30, 2024 | As of Dec. 31, 2023 | ||
Long-term debt, including current maturities (GAAP) | $ 249.0 | $ 274.3 | |
Add back: unamortized debt discount and issuance costs | 18.1 | 27.5 | |
Principal of long-term debt, including current maturities | 267.1 | 301.8 | |
Less: unrestricted cash | (50.1) | (58.9) | |
Non-Vehicle Net Debt (non-GAAP) | $ 217.0 | $ 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. We use Adjusted SG&A to measure our progress toward achieving our Vision 2026 goals. 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:
Third Quarter | First Nine Months | ||||||
2024 | 2023 | 2024 | 2023 | ||||
SG&A (GAAP) | $ 65.9 | $ 85.0 | $ 211.2 | $ 271.6 | |||
% of Gross Profit | 88.7 % | 92.4 % | 85.6 % | 94.1 % | |||
Adjustments: | |||||||
Lease expense associated with favorable related party leases in excess of contractual lease payments | (0.3) | (0.2) | (0.8) | (0.8) | |||
Other non-recurring costs(1) | (1.3) | (1.1) | (2.6) | (2.1) | |||
Personnel restructuring costs(2) | — | (0.6) | (0.1) | (5.3) | |||
Charges related to proxy contest and Board of Directors reorganization | — | (0.4) | — | (5.1) | |||
Loss associated with RumbleOn Finance loan receivables(3) | — | (0.6) | — | (6.0) | |||
Adjusted SG&A (non-GAAP) | $ 64.3 | $ 82.1 | $ 207.7 | $ 252.3 | |||
% of Gross Profit | 86.5 % | 89.2 % | 84.2 % | 87.4 % | |||
(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. |
(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.
Supplementary Data
(Unaudited)
Key Term Loan Credit Agreement Covenant Compliance Calculations as of September 30, 2024(1)
Consolidated Total Net Leverage Ratio | 4.9x | |
Covenant | Maximum Allowed | 5.5x |
Consolidated Senior Secured Net Leverage Ratio | 4.9x | |
Covenant | Maximum Allowed | 5.0x |
(1) | Calculated in accordance with our credit agreement. |
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SOURCE RumbleOn
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