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 | |||