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CHARLOTTE, N.C., April 30, 2018 -- RumbleOn, Inc. (NASDAQ:RMBL), a disruptive e-commerce platform facilitating the ability of both consumers and dealers to buy, sell, trade, and finance pre-owned vehicles in one online location with an emphasis on motorcycles and other powersports, today announced financial results for the three-month period ended March 31, 2018.
Marshall Chesrown, RumbleOn’s Chief Executive Officer, stated, “We are pleased with the continued momentum in our business during the first quarter. We remained focused on rapidly growing the business and improving unit economics, all while delivering a great consumer experience. Looking forward, we are excited about the opportunities for RumbleOn, as we continue to scale and invest in the business. Ultimately, we are leveraging our unique model to differentiate the business and set us apart as the clear leader in a fragmented market, driving significant growth and long-term shareholder value.”
Financial Summary
Three-month period ended March 31, 2018
- Revenue totaled $8.1 million, driven by the sale of 878 vehicles;
- Total average gross profit per vehicle was $788;
- Total operating loss was $3.5 million;
- Net loss was $3.6 million; and
- Net loss per share (basic and diluted) was $0.28, based on 12.9 million shares of common stock outstanding.
Three-month period ended March 31, 2017
- Revenue totaled $0.04 million, representing subscription fees;
- Total operating loss was $0.7 million;
- Net loss was $0.9 million; and
- Net loss per share (basic and diluted) was $0.13, based on 7.3 million shares of common stock outstanding.
The Company had no vehicle sales during the three-month period ended March 31, 2017.
Recent Developments
- On February 21, 2018, the Company entered into a floor plan line of credit for $25 million with Ally Bank.
- On April 30, 2018, the Company entered into a $15 million Senior Secured Credit Facility with Hercules Capital, Inc.
Conference Call Details
RumbleOn will host a conference call today, April 30, 2018, at 8:30 am Eastern Time to discuss financial results. Investors and analysts can participate in the conference call by dialing (800) 263-0877 or (323) 794-2094 and using conference ID #2400413. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the Investor Relations section on the Company’s website at http://investors.RumbleOn.com/. A telephone replay will be available beginning at approximately 12 p.m. Eastern Time on April 30, 2018, until 11:59 p.m. ET on May 14, 2018. The telephone replay is available by calling (844) 512-2921. The access code is 2400413.
About RumbleOn
RumbleOn operates a capital light disruptive e-commerce platform facilitating the ability of both consumers and dealers to Buy-Sell-Trade-Finance pre-owned vehicles in one online location. RumbleOn’s goal is to transform the way pre-owned vehicles are bought and sold by providing users with the most efficient, timely and transparent transaction experience. RumbleOn’s initial focus is the market for vin specific pre-owned vehicles with an emphasis on motorcycles and other powersports. Serving both consumers and dealers, through its 100% online marketplace platform, RumbleOn makes cash offers for the purchase of pre-owned vehicles. In addition, RumbleOn offers a large inventory of pre-owned vehicles for sale along with third-party financing and associated products. For additional information, please visit RumbleOn’s website at www.RumbleOn.com. Also visit the Company on Facebook, LinkedIn, Twitter, Instagram, YouTube and Pinterest.
Forward-Looking Statements
This press release, the conference call and webcast contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained in this press release, the conference call and webcast. Such factors include the “Risk Factors” set forth in the Company’s most recent SEC filings. All forward-looking statements are based on information available to the Company on the date of this press release, the conference call and webcast and the Company assumes no obligation to update such statements, except as required by law.
Contact:
Megan Crudele (Investors)
ICR
[email protected]
646-277-1200
Source: RumbleOn, Inc.
| RumbleOn, Inc. | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| Revenue: | 2018 | 2017 | ||||||
| Pre-owned vehicle sales | $ | 8,027,680 | $ | - | ||||
| Other sales and revenue | 52,525 | 38,889 | ||||||
| Total Revenue | 8,080,205 | 38,889 | ||||||
| Expenses: | ||||||||
| Cost of revenue | 7,521,301 | 34,688 | ||||||
| Selling, general and administrative | 3,880,492 | 655,208 | ||||||
| Depreciation and amortization | 205,767 | 60,085 | ||||||
| Total expenses | 11,607,560 | 749,981 | ||||||
| Operating loss | (3,527,355 | ) | (711,092 | ) | ||||
| Interest expense | 86,521 | 211,803 | ||||||
| Net loss before provision for income taxes | (3,613,876 | ) | (922,895 | ) | ||||
| Benefit for income taxes | - | - | ||||||
| Net loss | $ | (3,613,876 | ) | $ | (922,895 | ) | ||
| Weighted average number of common shares outstanding - basic and fully diluted | 12,928,541 | 7,263,492 | ||||||
| Net loss per share - basic and fully diluted | $ | (0.28 | ) | $ | (0.13 | ) | ||
| RumbleOn, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Unaudited) | ||||||||
| As of March 31, 2018 | As of December 31, 2017 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 5,378,282 | $ | 9,170,652 | ||||
| Restricted cash | 200,000 | - | ||||||
| Accounts receivable, net | 340,059 | 577,107 | ||||||
| Inventory | 3,125,315 | 2,834,666 | ||||||
| Prepaid expense | 216,826 | 308,880 | ||||||
| Total current assets | 9,260,482 | 12,891,305 | ||||||
| Property and equipment, net | 3,363,029 | 3,360,832 | ||||||
| Goodwill | 1,850,000 | 1,850,000 | ||||||
| Other assets | 46,572 | 50,693 | ||||||
| Total assets | $ | 14,520,083 | $ | 18,152,830 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and other accrued liabilities | $ | 1,293,949 | $ | 1,179,216 | ||||
| Accrued interest payable | 55,715 | 33,954 | ||||||
| Current portion of long-term debt | 585,072 | 1,081,593 | ||||||
| Total current liabilities | 1,934,736 | 2,294,763 | ||||||
| Long-term liabilities: | ||||||||
| Note payable | 1,506,524 | 1,459,410 | ||||||
| Accrued interest payable - related party | - | 32,665 | ||||||
| Total long-term liabilities | 1,506,524 | 1,492,075 | ||||||
| Total liabilities | 3,441,260 | 3,786,838 | ||||||
| Commitments and contingencies (Notes 4, 5, 7, 12, 13) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of March 31, 2018 and December 31, 2017 | - | - | ||||||
| Common A stock, $0.001 par value, 1,000,000 shares authorized, 1,000,000 shares issued and outstanding as of March 31, 2018 and December 31, 2017 | 1,000 | 1,000 | ||||||
| Common B stock, $0.001 par value, 99,000,000 shares authorized, 11,928,541 shares issued and outstanding as of March 31, 2018 and December 31, 2017 | 11,929 | 11,929 | ||||||
| Additional paid in capital | 23,699,067 | 23,372,360 | ||||||
| Accumulated deficit | (12,633,173 | ) | (9,019,297 | ) | ||||
| Total stockholders’ equity | 11,078,823 | 14,365,992 | ||||||
| Total liabilities and stockholders’ equity | $ | 14,520,083 | $ | 18,152,830 | ||||
| RumbleOn, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2018 | 2017 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (3,613,876 | ) | $ | (922,895 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 205,767 | 60,085 | ||||||
| Amortization of debt discount | 47,114 | |||||||
| Interest expense on conversion of debt | - | 196,076 | ||||||
| Share based compensation expense | 326,707 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Decrease (increase) in prepaid expenses | 92,054 | (38,452 | ) | |||||
| Increase in inventory | (290,649 | ) | - | |||||
| Decrease (increase)in accounts receivable | 237,048 | (16,187 | ) | |||||
| Increase in accounts payable and accrued liabilities | 114,733 | 535,201 | ||||||
| Decrease in accrued interest payable | (10,904 | ) | - | |||||
| Decrease in other assets | 4,121 | - | ||||||
| Net cash used in operating activities | (2,887,885 | ) | (186,172 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Cash used for acquisitions | - | (750,000 | ) | |||||
| Technology development | (185,968 | ) | (127,358 | ) | ||||
| Purchase of other assets | - | (42,775 | ) | |||||
| Purchase of property and equipment | (21,996 | ) | - | |||||
| Net cash used in investing activities | (207,964 | ) | (920,133 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from note payable | 585,072 | 667,000 | ||||||
| Repayments of line of credit-floor plan | (1,081,593 | ) | - | |||||
| Proceeds from sale of common stock | - | 3,113,040 | ||||||
| Net cash (used in) provided by financing activities | (496,521 | ) | 3,780,040 | |||||
| NET CHANGE IN CASH | (3,592,370 | ) | 2,673,735 | |||||
| CASH AT BEGINNING OF PERIOD | 9,170,652 | 1,350,580 | ||||||
| CASH AND RESTRICTED CASH AT END OF PERIOD | $ | 5,578,282 | $ | 4,024,315 | ||||
