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RumbleOn, Inc. Announces Financial Results for the First Quarter 2018

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CHARLOTTE, N.C., April 30, 2018 (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 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
RumbleOn@icrinc.com 
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  
                 

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