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RumbleOn, Inc. Announces Financial Results for the Fourth Quarter and Fiscal Year 2017

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CHARLOTTE, N.C., Feb. 27, 2018 (GLOBE NEWSWIRE) -- RumbleOn, Inc. (NASDAQ:RMBL), 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 with an initial emphasis on motorcycles and other powersports, today announced financial results for the three-months and year ended December 31, 2017.

Marshall Chesrown, RumbleOn's President and Chief Executive Officer, stated, "We are very pleased with all that we accomplished as a business in 2017, including launching and rapidly expanding the only end-to-end online marketplace that provides customers an effective, seamless, and hassle-free way to purchase pre-owned recreational vehicles. This unique and compelling business model has enabled RumbleOn to carve out a niche in the highly fragmented recreational vehicle marketplace.  As we look ahead, we will continue enhancing our technology, expanding our product to different market segments, and offering an unmatched customer experience, which we believe will position us well to drive further expansion in the business.

Financial Summary

There were no sales of vehicles during the three-months and fiscal year ended December 31, 2016.  As a result, comparative financial results for the three-months and fiscal year ended December 31, 2016 have been omitted.

Three-month period ended December 31, 2017

  • Revenue totaled $3.44 million, driven by the sale of 355 units;
  • Total average gross profit per unit was $764;
  • Total operating loss was $3.2 million;
  • Net loss was $3.4 million; and
  • Net loss per share was $0.28, based on 12.3 million weighted average shares of common stock outstanding.

Fiscal year ended December 31, 2017

  • Revenue totaled $7.3 million, driven by the sale of 678 units;
  • Total average gross profit per unit was $750;
  • Total operating loss was $8.0 million;
  • Net loss was $8.6 million; and
  • Net loss per share was $0.86, based on 9.9 million weighted average shares of common stock outstanding. 

Recent Developments

  • On February 16, 2018, the Company entered into a floor plan line of credit with Ally Bank Dealer Services for up to $25 million through its wholly-owned subsidiary, RMBL Missouri, LLC.  

Outlook

As our platform and business model begins to achieve scale, for the first quarter of 2018 we estimate:

  • Revenue in the range of $7.2 million to $7.5 million;
  • Net loss ranging from $3.0 to $3.6 million; and
  • We anticipate non-Harley Davidson units to approach 45% of vehicle sales, which will result in an average selling price ranging from $9,200 to $9,400 and gross margins range of 8% to 10%.

For the full year 2018, we estimate:

  • Revenue in excess of $100 million;
  • We expect that our sales mix between Harley Davidson and non-Harley Davidson vehicles will be about 50% each which is more in line with the overall market sales mix, and we anticipate that this will result in an average selling price range of $9,000 to $9,200 and a gross margin range of 12.5% to 14.5%; and
  • Positive cash-flow from operations in the second half of the year.

Conference Call Details

RumbleOn will host a conference call today, February 27, 2018, at 8:30 am Eastern Time to discuss financial results. Investors and analysts can participate in the conference call by dialing (800) 289-0517 or (323) 794-2423 and using conference ID # 5105639. 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 February 27, 2018, until 11:59 p.m. ET on March 13, 2018.  The telephone replay is available by calling (844) 512-2921.  The access code is 5105639.

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 motorcycles and other powersport and recreational 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 road vin specific pre-owned vehicles with an initial emphasis on motorcycles and other powersports.  Serving both consumers and dealers, through its 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
RumbleOn@icrinc.com 
646-277-1200

Source: RumbleOn, Inc.

               
RUMBLEON, INC.              
CONSOLIDATED STATEMENTS OF OPERATIONS            
               
  (unaudited)         
  For the Three Months ended December 31,   For the Year ended December 31,
               
Revenue:   2017       2016       2017       2016  
Consumer $   556,944     $   -      $   2,183,808     $   -   
Dealer     2,836,814         -          4,836,262         -   
Other Sales and Revenue     24,658         -          159,230         -   
Subscription fees     25,933         -          126,602         -   
Total Revenue     3,444,349         -          7,305,902         -   
               
Expenses:              
Cost of Sales     3,400,338         -          7,027,793      
Selling, general and administrative     2,896,783         153,358         7,586,999         211,493  
Depreciation And Amortization     365,770         475         668,467         1,900  
Total expenses     6,662,891         153,833         15,283,259         213,393  
               
Operating loss     (3,218,542 )       (153,833 )       (7,977,357 )       (213,393 )
               
Interest Expense     222,158         4,267         595,966         11,698  
               
Net loss before benefit for income taxes     (3,440,700 )       (158,100 )       (8,573,323 )       (225,091 )
               
Benefit for Income taxes     -          -          -        513  
               
Net Loss $   (3,440,700 )   $  (158,100 )   $  (8,573,323 )   $  (224,578 )
               
Weighted average number of shares outstanding     12,327,563         5,822,826         9,917,584         5,581,370  
               
Net loss per share-basic and fully-diluted $   (0.28 )   $   (0.03 )   $   (0.86 )       (0.04 )
                               


         
RUMBLEON, INC.        
CONSOLIDATED STATEMENTS OF CASH FLOWS        
FOR THE TWO YEAR ENDED DECEMBER 31, 2017        
         
      2017       2016  
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss   $   (8,573,323 )   $   (224,578 )
Adjustments to reconcile net loss            
to net cash used in operating activities:            
Depreciation and amortization       668,467         1,900  
Amortization of debt discount       276,076         1,282  
Interest expense on conversion of debt       196,076      
Share based compensation expense       503,023      
Impairment of asset               792  
Increase in deferred tax liability               (513 )
Changes in operating assets and liabilities:            
Increase in prepaid expenses       (307,213 )       (1,667 )
Increase in inventory       (2,834,666 )    
Increase in accounts receivable       (577,107 )    
Increase in accounts payable and accrued interest       960,115         210,302  
(Increase) decrease in accrued interest payable        70,237         (7,494 )
Increase in other assets       (5,178 )       -   
             
Net cash used in provided by operating activities       (9,623,493 )       (19,976 )
             
CASH FLOWS FROM INVESTING ACTIVITIES            
Cash used for acquisitions       (750,000 )       -   
Technology development       (506,786 )       -   
Purchase of other assets               (45,515 )
Purchase of property and equipment       (622,512 )       -   
             
Net cash used in investing activities       (1,879,298 )       (45,515 )
             
CASH FLOWS FROM FINANCING ACTIVITIES            
Proceeds from note payable       3,248,593         214,358  
Repayments for note payable       (1,650,000 )       (158,000 )
Proceeds from sale of common stock       17,724,270         1,354,000  
Donated capital       -          2,000  
             
Net cash provided by financing activities       19,322,863         1,412,358  
             
NET CHANGE IN CASH       7,820,072         1,346,867  
             
CASH AT BEGINNING OF PERIOD       1,350,580         3,713  
             
CASH AT END OF PERIOD   $   9,170,652     $   1,350,580  
                 


       
RUMBLEON, INC.      
CONSOLIDATED BALANCE SHEETS      
FOR THE TWO YEAR ENDED DECEMBER 31, 2017      
       
ASSETS    2017        2016  
       
Current assets:      
Cash $   9,170,652     $   1,350,580  
Accounts Receivable     577,107         -   
Inventory     2,834,666         -   
Prepaid expense     308,880         1,667  
Other     -       
Total current assets     12,891,305         1,352,247  
       
Property and Equipment - Net of Accumulated Depreciation     3,360,832         -   
Goodwill     1,850,000         -   
Other assets     50,693         45,515  
      5,261,525         45,515  
       
Total assets $   18,152,830     $   1,397,762  
       
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
Current liabilities:      
Accounts payable and accrued liabilities $   1,179,216     $   219,101  
Accrued interest payable      33,954         -   
Current portion of long-term debt     1,081,593         -   
Total current liabilities     2,294,763         219,101  
       
Long term liabilities:      
Note payable      1,459,410         1,282  
Accrued interest payable     32,665         5,508  
Deferred tax liability     -          78,430  
Total long-term liabilities     1,492,075         85,220  
       
Total liabilities     3,786,838         304,321  
       
Commitments and Contingencies      -          -   
       
Stockholders' equity:      
Common A stock, $0.001 par value, 10,000,000 shares      
authorized, 1,000,000 shares issued and outstanding      
as of December 31, 2017 and none outstanding at December 31, 2016     1,000         -   
Common B stock, $0.001 par value, 99,000,000 shares      
authorized, 11,928,541 and 6,400,000 shares issued and outstanding      
as of December 31, 2017 and 2016     11,929         6,400  
Additional paid in capital     23,372,360         1,534,015  
Subscriptions receivable     -          (1,000 )
Accumulated deficit     (9,019,297 )       (445,974 )
Total stockholders' equity     14,365,992         1,093,441  
       
Total liabilities and stockholders' equity $   18,152,830     $   1,397,762  
               

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