RumbleOn, Inc. Announces Financial Results for the Third Quarter 2017
November 09 2017 - 6:30AM
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 motorcycle and other power sport
and recreation vehicles in one online location, today announced
financial results for the three and nine-month periods ended
September 30, 2017.
Marshall Chesrown, RumbleOn’s President and Chief Executive
Officer, stated, “We are excited to have achieved a number of
milestones during the third quarter of 2017, all of which enabled
us to continue enhancing the visibility of RumbleOn and expand our
business. As we look ahead, we are focused on continuing to
differentiate ourselves in the highly fragmented resale
market. We believe that our focus on the customer, innovative
technology, unmatched service, first mover advantage, and strong
leadership team position us well to continue taking share in the
marketplace to drive the business forward and create long-term
shareholder value.”
Financial Summary
There were no sales of vehicles during the three and nine-month
periods ended September 30, 2016. As a result, comparative
financial results for the three and nine-month periods ended
September 30, 2016 have been omitted.
Three-month period ended September 30,
2017
- Revenue totaled $3.7 million, driven by the sale of 313
units;
- Total average gross profit per unit was $760;
- Total operating loss was $2.2 million;
- Net loss was $2.3 million; and
- Net loss per share was $0.23, based on 10 million shares of
common stock outstanding.
Nine-month period ended September 30,
2017
- Revenue totaled $3.9 million, driven by the sale of 323
units;
- Total average gross profit per unit was $736;
- Total operating loss was $4.8 million;
- Net loss was $5.1 million; and
- Net loss per share was $0.56, based on 10 million shares of
common stock outstanding.
Recent Developments
- On October 19, 2017, the Company uplisted its Class B common
stock to The Nasdaq Capital Market.
- On October 23, 2017, the Company completed an underwritten
offering of 2,910,000 shares of Class B common stock for net
proceeds to the Company of approximately $14.5 million.
- On November 2, 2017, the Company entered into a floor plan line
of credit for $2 million through its wholly-owned subsidiary, RMBL
Missouri, LLC.
- The Company has driven over 500,000 unique users to its site.
Conference Call Details
RumbleOn will host a conference call today, November 9, 2017, at
8:30 am Eastern Time to discuss financial results. Investors and
analysts can participate in the conference call by dialing (888)
394-8218 or (323) 701-0225 and using conference ID #3695668.
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 November 9, 2017, until 11:59 p.m. ET on
November 23, 2017. The telephone replay is available by
calling (844) 512-2921. The access code is 3695668.
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 motorcycle and other power sport
and recreation vehicles in one online location. RumbleOn’s goal is
to transform the way motorcycles and other power sport and
recreation 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 601cc
and larger on-road motorcycles. Serving both consumers and
dealers, through its online platform, RumbleOn makes cash offers
for the purchase of their vehicles and intends to provide them the
flexibility to trade, list, or auction their vehicle through
RumbleOn’s website and mobile applications. In addition, RumbleOn
offers a large inventory of used 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. 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)ICRRumbleOn@icrinc.com 646-277-1200
Source: RumbleOn, Inc.
RUMBLEON, INC.CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS(unaudited) |
|
|
|
|
|
|
|
|
|
|
Three-months endedSeptember
30, |
|
|
Nine-months endedSeptember
30, |
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|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Revenue:Used vehicle sales: |
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
$ |
1,626,864 |
|
|
$ |
- |
|
|
$ |
1,626,864 |
|
|
$ |
- |
|
Dealer |
|
|
1,745,948 |
|
|
|
- |
|
|
|
1,745,948 |
|
|
|
- |
|
Auction |
|
|
171,560 |
|
|
|
- |
|
|
|
253,500 |
|
|
|
- |
|
Other sales and
revenue |
|
|
134,573 |
|
|
|
- |
|
|
|
134,573 |
|
|
|
- |
|
Subscription and other
fees |
|
|
27,197 |
|
|
|
- |
|
|
|
100,668 |
|
|
|
- |
|
Total Revenue |
|
|
3,706,142 |
|
|
|
- |
|
|
|
3,861,553 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Revenue |
|
|
3,478,124 |
|
|
|
- |
|
|
|
3,627,455 |
|
|
|
- |
|
Selling,
general and administrative |
|
|
2,326,043 |
|
|
|
36,706 |
|
|
|
4,690,216 |
|
|
|
58,135 |
|
Depreciation and amortization |
|
|
129,277 |
|
|
|
475 |
|
|
|
302,697 |
|
|
|
1,425 |
|
Total expenses |
|
|
5,933,444 |
|
|
|
37,181 |
|
|
|
8,620,368 |
|
|
|
59,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
|
(2,227,302 |
) |
|
|
(37,181 |
) |
|
|
(4,758,815 |
) |
|
|
(59,560 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
90,201 |
|
|
|
2,878 |
|
|
|
373,808 |
|
|
|
7,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before
provision for income taxes |
|
|
(2,317,503 |
) |
|
|
(40,059 |
) |
|
|
(5,132,623 |
) |
|
|
(66,991 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit for
income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(2,317,503 |
) |
|
$ |
(40,059 |
) |
|
$ |
(5,132,623 |
) |
|
$ |
(66,991 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding – basic and fully
diluted |
|
|
10,018,541 |
|
|
|
5,500,000 |
|
|
|
9,105,429 |
|
|
|
5,500,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share – basic and fully diluted |
|
$ |
(0.23 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.56 |
) |
|
$ |
(0.01 |
) |
RUMBLEON, INC.CONDENSED
CONSOLIDATED BALANCE
SHEETS(unaudited) |
|
|
|
|
|
ASSETS |
|
Balance at |
|
|
|
September 30, 2017 |
|
|
December 31, 2016 |
|
Current
assets: |
|
|
|
|
|
|
Cash |
|
$ |
656,220 |
|
|
$ |
1,350,580 |
|
Accounts
Receivable |
|
|
320,575 |
|
|
|
- |
|
Vehicle
Inventory |
|
|
1,244,658 |
|
|
|
- |
|
Prepaid
expense |
|
|
123,513 |
|
|
|
1,667 |
|
Other |
|
|
174,419 |
|
|
|
- |
|
Total
current assets |
|
|
2,519,385 |
|
|
|
1,352,247 |
|
|
|
|
|
|
|
|
|
|
Property and Equipment
- Net of Accumulated Depreciation |
|
|
2,166,326 |
|
|
|
- |
|
Goodwill |
|
|
3,240,000 |
|
|
|
- |
|
Intangible Assets,
net |
|
|
121,765 |
|
|
|
45,515 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
8,047,476 |
|
|
$ |
1,397,762 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable and accrued liabilities |
|
$ |
1,902,543 |
|
|
$ |
219,101 |
|
Accrued
interest payable |
|
|
17,998 |
|
|
|
- |
|
Current
portion of long term debt |
|
|
1,510,274 |
|
|
|
- |
|
Other
current liabilities |
|
|
- |
|
|
|
- |
|
Total current liabilities |
|
|
3,430,815 |
|
|
|
219,101 |
|
|
|
|
|
|
|
|
|
|
Long term
liabilities: |
|
|
|
|
|
|
|
|
Notes
payable |
|
|
1,414,937 |
|
|
|
1,282 |
|
Accrued
interest payable - related party |
|
|
21,736 |
|
|
|
5,508 |
|
Deferred
tax liability |
|
|
- |
|
|
|
78,430 |
|
Total
long-term liabilities |
|
|
1,436,673 |
|
|
|
85,220 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
|
4,867,488 |
|
|
|
304,321 |
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
|
|
|
Preferred
stock, $0.001 par value, 10,000,000 shares authorized, no shares
issued and outstanding as of September 30, 2017 and
December 31, 2016 |
|
|
- |
|
|
|
- |
|
Common A
stock, $0.001 par value, 1,000,000 shares authorized, 1,000,000
shares issued and outstanding as of September 30, 2017 and none
outstanding at December 31, 2016 |
|
|
1,000 |
|
|
|
- |
|
Common B
stock, $0.001 par value, 99,000,000 shares authorized, 9,018,541
and 6,400,000 shares issued and outstanding as of September 30,
2017 and December 31, 2016 |
|
|
9,019 |
|
|
|
6,400 |
|
Additional paid in capital |
|
|
8,749,566 |
|
|
|
1,534,015 |
|
Subscriptions receivable |
|
|
(1,000 |
) |
|
|
(1,000 |
) |
Accumulated deficit |
|
|
(5,578,597 |
) |
|
|
(445,974 |
) |
Total stockholders' equity |
|
|
3,179,988 |
|
|
|
1,093,441 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
8,047,476 |
|
|
$ |
1,397,762 |
|
RUMBLEON, INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH
FLOWS(unaudited) |
|
|
|
|
|
|
|
Nine-months endedSeptember
30, |
|
|
|
2017 |
|
|
2016 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
Net loss |
|
$ |
(5,132,623 |
) |
|
$ |
(66,991 |
) |
Adjustments to reconcile net income |
|
|
|
|
|
|
|
|
to net
cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
302,697 |
|
|
|
1,425 |
|
Amortization of debt discount |
|
|
91,877 |
|
|
|
- |
|
Interest
expense on conversion of debt |
|
|
196,076 |
|
|
|
- |
|
Share
based compensation expense |
|
|
287,550 |
|
|
|
- |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Increase
in prepaid expenses |
|
|
(121,846 |
) |
|
|
(4,167 |
) |
Increase
in inventory |
|
|
(1,244,658 |
) |
|
|
|
|
Increase
in accounts receivable |
|
|
(320,575 |
) |
|
|
- |
|
Increase
in other current assets |
|
|
(174,419 |
) |
|
|
- |
|
Increase
in accounts payable and accrued liabilities |
|
|
1,683,442 |
|
|
|
18,095 |
|
Increase
in accrued interest payable - related party |
|
|
43,351 |
|
|
|
(10,478 |
) |
|
|
|
|
|
|
|
|
|
Net cash used in operating activities |
|
|
(4,389,128 |
) |
|
|
(62,116 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Cash used
for acquisitions |
|
|
(750,000 |
) |
|
|
- |
|
Technology development |
|
|
(435,097 |
) |
|
|
- |
|
Purchase
of property and equipment |
|
|
(600,175 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(1,785,272 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Proceeds
from note payable |
|
|
2,167,000 |
|
|
|
214,358 |
|
Repayments for note payable - related party |
|
|
- |
|
|
|
(158,000 |
) |
Proceeds
from sale of common stock |
|
|
3,313,040 |
|
|
|
7,000 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
5,480,040 |
|
|
|
63,358 |
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN
CASH |
|
|
(694,360 |
) |
|
|
1,242 |
|
|
|
|
|
|
|
|
|
|
CASH AT
BEGINNING OF PERIOD |
|
|
1,350,580 |
|
|
|
3,713 |
|
|
|
|
|
|
|
|
|
|
CASH AT END OF
PERIOD |
|
$ |
656,220 |
|
|
$ |
4,955 |
|
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