DALLAS--(BUSINESS WIRE)--RumbleOn, Inc (NASDAQ: RMBL), an e-commerce company using innovative technology to aggregate and distribute pre-owned vehicles to and from both consumers and dealers, today announced financial results for the year ended December 31, 2020. Management is hosting an investor call to discuss results today, March 15, 2021 at 8:30am ET.
“Less than seven months after launching RumbleOn 3.0 its clear the newest generation of RumbleOn has been a great success,” said Marshall Chesrown, Chief Executive Officer. “RumbleOn 3.0 has increased overall listings on RumbleOn.com which has led to an improvement in gross profit on vehicles sold of more than 100% in 2020 as compared to 2019.”
Chesrown concluded, “The prescriptive steps we’ve taken to improve margins and expand our offering over the past year have quickly cemented RumbleOn as a Powersports leader in the United States.”
Full Year 2020 Financial Highlights
RumbleOn’s decision to focus on profitability in 2020, combined with the impact of COVID-19 has resulted in significantly reduced commercial activity and total inventory in the market. Despite these factors the Company's full year results demonstrate improvements in margin and EBITDA.
Unless otherwise noted, all comparisons are on a year-over-year basis for the twelve months ended December 31, 2020.
- Total vehicle unit sales was 18,024, a decrease from 43,143 in 2019
-
Total revenue was $416.4 million, a decrease from $840.6 million in 2019
- Powersports revenue was $46.7 million
- Automotive revenue was $337.1 million
- Transportation and vehicle logistics revenue was $31.8 million
-
Total gross profit was $31.6 million, or a total gross margin of 7.6%, an increase from 6.0% in 2019
- Gross margin on vehicles sold (excluding the impairment loss on automotive inventory) was 9.6%, up from 5.4%. Gross profit per vehicle was $2,047 per vehicle, a 100.4% increase from 2019
- Powersports gross profit per powersport vehicle sold was $1,478
- Automotive gross profit per automotive vehicle sold was $2,282
-
Sales, General and Administrative Expenses was $53.7 million, a decrease from $86.6 million in 2019
- Compensation expense was $25.7 million
- Advertising and Marketing expense was $5.3 million
- Professional fees were $3.2 million
- Technology development expense was $1.4 million
- General and Administrative expense was $18.1 million
- Operating loss was $(18.6) million, an improvement from $(37.8) million in 2019
- Net loss was $(25.0) million, an improvement from $(45.2) million in 2019
- Adjusted EBITDA was $(5.8) million or (1.4)% of revenue, an improvement from $(26.4) million or (3.1)% of revenue in 2019
- Net loss per basic and fully diluted Class B share was $(11.44), an improvement from $(40.53) in 2019
Adjusted EBITDA is a non-GAAP financial measure. Reconciliations of non-GAAP financial measures used in this release are provided in the attached financial tables.
Given the uncertainty of the ongoing impact and unprecedented conditions surrounding the COVID-19 pandemic, we cannot predict the overall effect to RumbleOn, our customers, regional business partners, and others that we work with.
Conference Call Details
RumbleOn’s management will host a conference call today, Monday, March 15, 2021 at 8:30 a.m. ET. A live and archived webcast can be accessed from RumbleOn's Investor Relations website at https://investors.rumbleon.com. To access the conference call telephonically, callers may dial (877) 407-9716, or (201) 493-6779 for callers outside of the United States and entering conference ID 13716962.
About RumbleOn
Founded in 2017, RumbleOn (NASDAQ: RMBL) is an e-commerce company using innovative technology to aggregate and distribute pre-owned automotive and powersport vehicles to and from both consumers and dealers, 100% online. RumbleOn is disrupting the pre-owned vehicle supply chain by providing dealers with technology solutions such as virtual inventory, and a 24/7 distribution platform, and consumers with an efficient, timely and transparent transaction experience, without leaving home. Whether buying, selling, trading or financing a vehicle, RumbleOn enables dealers and consumers to transact without geographic boundaries in a transparent, fast and friction free experience. For more information, please visit http://www.rumbleon.com.
Non-GAAP Financial Measures
As required by the rules of the Securities and Exchange Commission ("SEC"), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this release. Non-GAAP financial measures for the three and twelve months ended December 31, 2020 used in this release include: adjusted EBITDA.
Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to operating income or net income as a measure of operating performance or cash flows or as a measure of liquidity. Non-GAAP financial measures are not necessarily calculated the same way by different companies and should not be considered a substitute for or superior to U.S. GAAP.
Adjusted EBITDA is defined as net income or loss adjusted to add back interest expense including debt extinguishment and depreciation and amortization, and certain charges and expenses, such as goodwill impairment, impairment loss on automotive inventory, impairment loss on plant & equipment, insurance recovery proceeds, non-cash stock-based compensation, change in derivative liability, litigation expenses, severance, new business development and other non-recurring costs, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing, future company performance.
Adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business. We present adjusted EBITDA because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe it is helpful in highlighting trends in our operating results, because it excludes, among other things, certain results of decisions that are outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure and capital investments.
Forward-Looking Statements
This press release may contain "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), 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.
Consolidated Balance Sheets |
|||||||||
December 31, 2020 and 2019 |
|||||||||
(Unaudited) |
|||||||||
|
|
2020 |
|
2019 |
|||||
ASSETS |
|
|
|
||||||
Current assets: |
|
|
|
||||||
Cash |
|
$ |
1,466,831 |
|
$ |
49,660 |
|
||
Restricted cash |
|
2,049,056 |
|
6,676,622 |
|
||||
Accounts receivable, net |
|
9,407,960 |
|
8,482,707 |
|
||||
Inventory |
|
21,360,441 |
|
57,381,281 |
|
||||
Prepaid expense and other current assets |
|
3,446,225 |
|
1,210,474 |
|
||||
Total current assets |
|
37,730,513 |
|
73,800,744 |
|
||||
|
|
||||||||
Property and equipment, net |
|
6,521,446 |
|
6,427,674 |
|
||||
Right-of-use assets |
|
|
|
5,689,637 |
|
|
|
6,040,287 |
|
Goodwill |
|
26,886,563 |
|
26,886,563 |
|
||||
Other assets |
|
151,076 |
|
237,823 |
|
||||
Total assets |
|
$ |
76,979,235 |
|
$ |
113,393,091 |
|
||
|
|
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|||||||
|
|
||||||||
Current liabilities: |
|
|
|||||||
Accounts payable and accrued liabilities |
|
$ |
12,707,448 |
|
$ |
12,421,094 |
|
||
Accrued interest payable |
|
1,485,854 |
|
749,305 |
|
||||
Current portion of convertible debt, net |
|
|
|
562,502 |
|
|
|
1,363,590 |
|
Current portion of long-term debt |
|
20,688,651 |
|
59,160,970 |
|
||||
Total current liabilities |
|
35,444,455 |
|
73,694,959 |
|
||||
|
|
||||||||
Long -term liabilities: |
|
|
|||||||
Notes payable |
|
|
|
4,691,181 |
|
|
|
1,924,733 |
|
Convertible debt, net |
|
|
|
27,166,019 |
|
|
|
20,136,229 |
|
Derivative liabilities |
|
|
|
16,694 |
|
|
|
27,500 |
|
Operating lease liabilities and other long-term liabilities |
|
5,090,221 |
|
4,722,101 |
|
||||
Total long-term liabilities |
|
36,526,615 |
|
26,810,563 |
|
||||
Total liabilities |
|
71,408,570 |
|
100,505,522 |
|
||||
|
|
||||||||
|
|
||||||||
|
|
||||||||
Stockholders' equity: |
|
|
|||||||
Class B Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of December 31, 2020 and 2019, respectively |
|
- |
|
- |
|
||||
Common A stock, $0.001 par value, 50,000 shares authorized, 50,000 shares issued and outstanding as of December 31, 2020 and 2019, respectively |
|
50 |
|
50 |
|
||||
Common B stock, $0.001 par value, 4,950,000 shares authorized, 2,191,633 and 1,111,681 shares issued and outstanding as of December 31, 2020 and 2019, respectively |
|
2,192 |
|
1,112 |
|
||||
Additional paid in capital |
|
108,949,204 |
|
92,268,213 |
|
||||
Accumulated deficit |
|
(104,380,781 |
) |
(79,381,806 |
) |
||||
Total stockholders' equity |
|
4,570,665 |
|
12,887,569 |
|
||||
|
|
||||||||
Total liabilities and stockholders' equity |
|
$ |
76,979,235 |
|
$ |
113,393,091 |
|
||
Consolidated Statements of Operations |
||||||||
For the Years Ended December 31, 2020 and 2019 |
||||||||
(Unaudited) |
||||||||
|
|
2020 |
|
2019 |
||||
Revenue: |
|
|
|
|
|
|
||
Pre-owned Vehicle Sales: |
|
|
|
|
|
|
||
Powersports |
|
$ |
46,653,668 |
|
|
$ |
101,008,976 |
|
Automotive |
|
|
337,084,959 |
|
|
|
717,042,511 |
|
Transportation and vehicle logistics |
|
|
31,816,157 |
|
|
|
22,577,860 |
|
Other |
|
|
872,459 |
|
|
|
- |
|
Total revenue |
|
|
416,427,243 |
|
|
|
840,629,347 |
|
|
|
|
|
|
|
|
||
Cost of revenue: |
|
|
|
|
|
|
||
Powersports |
|
|
40,060,571 |
|
|
|
88,673,515 |
|
Automotive |
|
|
308,800,631 |
|
|
|
685,313,894 |
|
Transportation and vehicle logistics |
|
|
24,200,229 |
|
|
|
16,023,962 |
|
Cost of revenue before impairment loss |
|
|
373,061,431 |
|
|
|
790,011,371 |
|
Impairment loss on automotive inventory |
|
|
11,738,413 |
|
|
|
- |
|
Total cost of revenue |
|
|
384,799,844 |
|
|
|
790,011,371 |
|
|
|
|
|
|
|
|
||
Gross profit |
|
|
31,627,399 |
|
|
|
50,617,976 |
|
|
|
|
|
|
|
|
||
Selling, general and administrative |
|
|
53,659,348 |
|
|
|
86,624,249 |
|
|
|
|
|
|
|
|
||
Insurance recovery proceeds |
|
|
(5,615,268 |
) |
|
|
- |
|
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
2,142,939 |
|
|
|
1,786,426 |
|
|
|
|
|
|
|
|
||
Operating loss |
|
|
(18,559,620 |
) |
|
|
(37,792,699 |
) |
|
|
|
|
|
|
|
||
Interest expense |
|
|
(6,638,325 |
) |
|
|
(7,187,604 |
) |
Decrease in derivative liability |
|
|
10,806 |
|
|
|
1,302,500 |
|
Gain (loss) on early extinguishment of debt |
|
|
188,164 |
|
|
|
(1,499,250 |
) |
Net loss before provision for income taxes |
|
|
(24,998,975 |
) |
|
|
(45,177,053 |
) |
|
|
|
|
|
|
|
||
Benefit for income taxes |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
||
Net loss |
|
$ |
(24,998,975 |
) |
|
$ |
(45,177,053 |
) |
|
|
|
|
|
|
|
||
Weighted average number of common shares outstanding - basic and fully diluted |
|
|
2,184,441 |
|
|
|
1,114,714 |
|
|
|
|
|
|
|
|
||
Net loss per share - basic and fully diluted |
|
$ |
(11.44 |
) |
|
$ |
(40.53 |
) |
Consolidated Statements of Cash Flows |
||||||||
For the Years Ended December 31, 2020 and 2019 |
||||||||
(Unaudited) |
||||||||
|
|
2020 |
|
2019 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
||
Net loss |
|
$ |
(24,998,975 |
) |
|
$ |
(45,177,053 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
2,142,939 |
|
|
|
1,786,426 |
|
Amortization of debt discount |
|
|
2,027,046 |
|
|
|
1,664,000 |
|
Bad debt expense |
|
|
310,721 |
|
|
|
1,123,739 |
|
Stock based compensation expense |
|
|
2,978,236 |
|
|
|
3,836,518 |
|
Impairment loss on inventory |
|
|
11,738,413 |
|
|
|
- |
|
Impairment loss on property and equipment |
|
|
177,626 |
|
|
|
- |
|
(Gain) from change in value of derivative liability |
|
|
(10,806 |
) |
|
|
(1,302,500 |
) |
Loss from extinguishment of debt |
|
|
(188,164 |
) |
|
|
1,499,250 |
|
Goodwill impairment |
|
|
- |
|
|
|
1,850,000 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Decrease (increase) in accounts receivable |
|
|
(1,235,974 |
) |
|
|
2,037,023 |
|
(Increase) decrease in inventory |
|
|
24,282,427 |
|
|
|
(2,327,754 |
) |
(Increase) in prepaid expenses and other current assets |
|
|
(2,235,751 |
) |
|
|
(113,529 |
) |
(Increase) decrease in other assets |
|
|
86,747 |
|
|
|
(135,645 |
) |
Increase in other liabilities |
|
|
720,067 |
|
|
|
- |
|
(Decrease) increase in accounts payable and accrued liabilities |
|
|
152,126 |
|
|
|
(5,031,073 |
) |
Increase in accrued interest payable |
|
|
1,196,549 |
|
|
|
543,268 |
|
Net cash provided by (used in) operating activities |
|
|
17,143,227 |
|
|
|
(39,747,330 |
) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
||
Net cash used for acquisitions |
|
|
- |
|
|
|
(835,000 |
) |
Proceeds from sales of property and equipment |
|
|
38,436 |
|
|
|
169,268 |
|
Technology development |
|
|
(2,145,055 |
) |
|
|
(3,085,743 |
) |
Purchase of property and equipment |
|
|
(174,786 |
) |
|
|
(119,748 |
) |
Net cash used in investing activities |
|
|
(2,281,405 |
) |
|
|
(3,871,223 |
) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
||
Proceeds from notes payable and convertible debt |
|
|
8,272,375 |
|
|
|
27,455,537 |
|
Repayments for notes payable |
|
|
(1,767,758 |
) |
|
|
(10,857,500 |
) |
Net proceeds from (payments on) lines of credit |
|
|
(40,533,759 |
) |
|
|
2,788,469 |
|
Proceeds from PPP Loan |
|
|
5,176,845 |
|
|
|
- |
|
Proceeds from sale of common stock |
|
|
10,780,080 |
|
|
|
15,173,427 |
|
Net cash provided by (used in) financing activities |
|
|
(18,072,217 |
) |
|
|
34,559,933 |
|
|
|
|
|
|
|
|
||
NET CHANGE IN CASH |
|
|
(3,210,395 |
) |
|
|
(9,058,620 |
) |
|
|
|
|
|
|
|
||
CASH AND RESTRICTED CASH AT BEGINNING OF PERIOD |
|
|
6,726,282 |
|
|
|
15,784,902 |
|
|
|
|
|
|
|
|
||
CASH AND RESTRICTED CASH AT END OF PERIOD |
|
$ |
3,515,887 |
|
|
$ |
6,726,282 |
|
Reconciliation of Non-GAAP Measures |
||||||||
Reconciliation of Adjusted EBITDA to Net Loss |
||||||||
RumbleOn, Inc. |
||||||||
(Unaudited) |
||||||||
|
|
2020 |
|
2019 |
||||
Net loss |
|
$ |
(24,998,975 |
) |
|
$ |
(45,177,053 |
) |
Add back: |
|
|
|
|
|
|
||
Interest expense (including debt extinguishment) |
|
|
6,450,161 |
|
|
|
8,686,854 |
|
Depreciation and amortization |
|
|
2,142,939 |
|
|
|
1,786,426 |
|
EBITDA |
|
|
(16,405,875 |
) |
|
|
(34,703,773 |
) |
Adjustments |
|
|
|
|
|
|
||
Goodwill impairment |
|
|
|
|
|
1,850,000 |
|
|
Impairment loss on automotive inventory |
|
|
11,738,413 |
|
|
|
- |
|
Impairment loss on plant & equipment |
|
|
177,626 |
|
|
|
- |
|
Insurance recovery proceeds |
|
|
(5,615,268 |
) |
|
|
- |
|
Non-cash stock-based compensation |
|
|
2,978,236 |
|
|
|
3,836,518 |
|
Change in derivative liability |
|
|
(10,806 |
) |
|
|
(1,302,500 |
) |
Litigation expenses |
|
1,295,717 |
61,446 |
|||||
Severance |
|
|
- |
|
|
|
1,079,438 |
|
New business development |
|
|
- |
|
|
|
1,224,523 |
|
Other Non-recurring costs |
|
|
51,387 |
|
|
|
1,578,220 |
|
Adjusted EBITDA |
|
$ |
(5,790,570 |
) |
|
$ |
(26,376,128 |
) |
