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RumbleOn, Inc. Announces Financial Results for the Third Quarter 2017

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CHARLOTTE, N.C., Nov. 09, 2017 (GLOBE NEWSWIRE) -- 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 motorcycle and other power sport and recreation vehicles in one online location, today announced financial results for the three and nine-month periods ended September 30, 2017. 

Marshall Chesrown, RumbleOn's President and Chief Executive Officer, stated, "We are excited to have achieved a number of milestones during the third quarter of 2017, all of which enabled us to continue enhancing the visibility of RumbleOn and expand our business.  As we look ahead, we are focused on continuing to differentiate ourselves in the highly fragmented resale market.  We believe that our focus on the customer, innovative technology, unmatched service, first mover advantage, and strong leadership team position us well to continue taking share in the marketplace to drive the business forward and create long-term shareholder value."

Financial Summary

There were no sales of vehicles during the three and nine-month periods ended September 30, 2016.  As a result, comparative financial results for the three and nine-month periods ended September 30, 2016 have been omitted.

Three-month period ended September 30, 2017

  • Revenue totaled $3.7 million, driven by the sale of 313 units;
  • Total average gross profit per unit was $760;
  • Total operating loss was $2.2 million;
  • Net loss was $2.3 million; and
  • Net loss per share was $0.23, based on 10 million shares of common stock outstanding.

Nine-month period ended September 30, 2017

  • Revenue totaled $3.9 million, driven by the sale of 323 units;
  • Total average gross profit per unit was $736;
  • Total operating loss was $4.8 million;
  • Net loss was $5.1 million; and
  • Net loss per share was $0.56, based on 10 million shares of common stock outstanding. 

Recent Developments

  • On October 19, 2017, the Company uplisted its Class B common stock to The Nasdaq Capital Market.
  • On October 23, 2017, the Company completed an underwritten offering of 2,910,000 shares of Class B common stock for net proceeds to the Company of approximately $14.5 million.
  • On November 2, 2017, the Company entered into a floor plan line of credit for $2 million through its wholly-owned subsidiary, RMBL Missouri, LLC.
  • The Company has driven over 500,000 unique users to its site.  

Conference Call Details

RumbleOn will host a conference call today, November 9, 2017, at 8:30 am Eastern Time to discuss financial results. Investors and analysts can participate in the conference call by dialing (888) 394-8218 or (323) 701-0225 and using conference ID #3695668. 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 November 9, 2017, until 11:59 p.m. ET on November 23, 2017.  The telephone replay is available by calling (844) 512-2921.  The access code is 3695668.

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 motorcycle and other power sport and recreation vehicles in one online location. RumbleOn's goal is to transform the way motorcycles and other power sport and recreation 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 601cc and larger on-road motorcycles.  Serving both consumers and dealers, through its online platform, RumbleOn makes cash offers for the purchase of their vehicles and intends to provide them the flexibility to trade, list, or auction their vehicle through RumbleOn's website and mobile applications. In addition, RumbleOn offers a large inventory of used 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 FacebookLinkedInTwitterInstagramYouTube 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.  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
RumbleOn@icrinc.com 
646-277-1200

Source: RumbleOn, Inc.


RUMBLEON, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
 
             
    Three-months ended
September 30,
    Nine-months ended
September 30,
 
    2017     2016     2017     2016  
Revenue:
Used vehicle sales:
                       
Consumer   $ 1,626,864     -     $ 1,626,864     -  
Dealer     1,745,948       -       1,745,948       -  
Auction     171,560       -       253,500       -  
Other sales and revenue     134,573       -       134,573       -  
Subscription and other fees     27,197       -       100,668       -  
Total Revenue     3,706,142       -       3,861,553       -  
                                 
Cost of Revenue     3,478,124       -       3,627,455       -  
Selling, general and administrative     2,326,043       36,706       4,690,216       58,135  
Depreciation and amortization     129,277       475       302,697       1,425  
Total expenses     5,933,444       37,181       8,620,368       59,560  
                                 
Operating loss     (2,227,302 )     (37,181 )     (4,758,815 )     (59,560 )
                                 
Interest expense     90,201       2,878       373,808       7,431  
                                 
Net loss before provision for income taxes     (2,317,503 )     (40,059 )     (5,132,623 )     (66,991 )
                                 
Benefit for income taxes     -       -       -       -  
                                 
Net loss   $ (2,317,503 )   $ (40,059 )   $ (5,132,623 )   (66,991 )
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