RumbleOn Reports Third Quarter 2024 Financial Results
IRVING, Texas, Nov. 12, 2024 /PRNewswire/ -- RumbleOn, Inc. (NASDAQ:RMBL), the "Company" or "RumbleOn", today announced results for the third quarter ended September 30, 2024.
Key Third Quarter 2024 Highlights (Compared to Third Quarter 2023):
Revenue of $295.0 million decreased 12.7%
Net loss totaled $11.2 million compared to net loss of $16.5 million
Selling, general & administrative expense (SG&A) was $65.9 million compared to $85.0 million
Adjusted EBITDA(1) of $6.8 million decreased 26.1%
Other Highlights:
Received commitments for $30.0 million of incremental capital from our three largest shareholders, of which $10 million is in the form of a backstopped common equity rights offering
Executed term loan credit agreement amendment giving the business more flexibility to operate
Engaged an investment bank to explore a refinancing of the Company's debt
Reduced inventories by $53.9 million and floor plan notes payable by $52.9 million during the quarter
Operating cash inflows for the first nine months totaled $68.6 million compared to cash outflows of $18.5 million in 2023
Reduced Non-Vehicle Net Debt by $25.9 million in the first nine months of 2024
Acquired a Harley-Davidson dealership in Massachusetts in August 2024
"During the third quarter, our team navigated an incrementally more challenging environment and delivered strong performance on key areas of the business. Our goal communicated earlier this year to reduce new inventories by the end of 2024 is largely on track. Operating cash flows continue to significantly outperform compared to last year. Our SG&A as a percent of gross profit dollars has decreased, which evidences the increasing productivity of our operations, and we expect to drive continuous improvements in further cost optimization. I am incredibly proud of the team and their resilience in this tough environment. In addition, we have received significant support from our three largest shareholders, which aligns with our goal to deleverage our balance sheet and lower our cost of capital. We believe all of this is laying the groundwork for an improved 2025," stated Mike Kennedy, RumbleOn's CEO.
Third Quarter 2024 Results
Third Quarter
($ in millions)
2024
2023
YOY Change
Revenue
$ 295.0
$ 338.1
(12.7) %
Gross Profit
$ 74.3
$ 92.0
(19.2) %
SG&A
$ 65.9
$ 85.0
(22.5) %
Adjusted SG&A(1)
$ 64.3
$ 82.1
(21.7) %
Operating Income (Loss)
$ 5.3
$ (0.2)
NM
Net Loss
$ (11.2)
$ (16.5)
32.1 %
Adjusted EBITDA(1)
$ 6.8
$ 9.2
(26.1) %
Unit Retail Sales:
New Powersports
9,740
10,851
(10.2) %
Pre-owned Powersports
4,549
5,619
(19.0) %
Nine Months Ended September 30,
($ in millions)
2024
2023
YOY Change
Operating Cash Flow
$ 68.6
$ (18.5)
470.8 %
Capital Expenditures
$ (1.6)
$ (7.8)
79.5 %
Free Cash Flow(1)
$ 67.0
$ (26.3)
354.8 %
Sep. 30,
Dec. 31,
2024
2023
Change
Cash (unrestricted)
$ 50.1
$ 58.9
(14.9) %
Long-term Debt, including Current Maturities
$ 249.0
$ 274.3
(9.2) %
Non-Vehicle Debt
$ 267.1
$ 301.8
(11.5) %
Non-Vehicle Net Debt(1)
$ 217.0
$ 242.9
(10.7) %
(1)
Adjusted SG&A, EBITDA, Adjusted EBITDA, Free Cash Flow, and Non-Vehicle Net Debt are non-GAAP measures. Reconciliations of GAAP to non-GAAP financial measures are provided in accompanying financial schedules.
NM
= Not meaningful.
Third Quarter 2024, Segment Results
Powersports Segment
Third Quarter
$ in millions, except per unit
2024
2023
YOY Change
Unit Sales (#)
Retail
New
9,740
10,851
(10.2) %
Pre-owned
4,549
5,619
(19.0) %
Total retail
14,289
16,470
(13.2) %
Pre-owned wholesale
1,059
1,103
(4.0) %
Total Powersports Unit Sales
15,348
17,573
(12.7) %
Revenue
New
$ 147.1
$ 159.6
(7.8) %
Pre-owned
59.3
75.5
(21.5) %
Finance & Insurance, net
24.3
29.3
(17.1) %
Parts, Services, and Accessories
49.2
59.7
(17.6) %
Total Powersports Revenue
$ 279.9
$ 324.1
(13.6) %
Gross Profit
New
$ 16.6
$ 22.0
(24.5) %
Pre-owned
7.2
10.3
(30.1) %
Finance & Insurance, net
24.3
29.3
(17.1) %
Parts, Services, and Accessories
22.7
27.0
(15.9) %
Total Powersports Gross Profit
$ 70.8
$ 88.6
(20.1) %
Powersports GPU(1)
$ 4,955
$ 5,380
(7.9) %
(1)
Calculated as total powersports gross profit divided by total retail units sold.
Vehicle Transportation Services Segment
Third Quarter
($ in millions)
2024
2023
Change
Vehicles Transported (#)
25,084
22,930
9.4 %
Vehicle Transportation Services Revenue
$ 15.1
$ 14.0
7.9 %
Vehicle Transportation Services Gross Profit
$ 3.5
$ 3.4
2.9 %
Investor Conference Call
RumbleOn's management will host a conference call to discuss these results on November 12, 2024 at 7:00 a.m. Central Time (8:00 a.m. Eastern Time). To access the conference call, United States callers may dial 1-844-825-9789 (1-412-317-5180 for callers outside of the United States) and enter conference ID 10193677. A live and archived webcast will be accessible from RumbleOn's Investor Relations website at https://investors.rumbleon.com.
About RumbleOn
RumbleOn, Inc. (NASDAQ:RMBL), operates through two operating segments: our Powersports dealership group and Wholesale Express, LLC, an asset-light transportation services provider focused on the automotive industry. Our Powersports group is the largest powersports retail group in the United States (as measured by reported revenue, major unit sales and dealership locations), offering over 500 powersports franchises representing 50 different brands of products. Our Powersports group sells a wide selection of new and pre-owned products, including parts, apparel, accessories, finance & insurance products and services, and aftermarket products. We are the largest purchaser of pre-owned powersports vehicles in the United States and utilize RideNow's Cash Offer to acquire vehicles directly from consumers.
For more information on RumbleOn, please visit rumbleon.com.
Forward-Looking Statements
This press release contains "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995, 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.
Non-GAAP Measures
To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), the Company uses the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Free Cash Flow, Non-Vehicle Net Debt, and Adjusted SG&A (collectively the "non-GAAP financial measures"). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means ...
