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Published: 2021-12-03 16:50:40 ET
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EX-99.1 2 ea150880ex99-1_rumbleon.htm SUPPLEMENTAL METRICS SCHEDULE AND FINANCIAL OVERVIEW

Exhibit 99.1

 

Supplemental RumbleOn/RideNow Metrics Schedule and Financial Overview

 

RumbleOn, Inc. (the “Company” or “RumbleOn”) completed its business combination with RideNow (the “RideNow Transaction”) on August 31, 2021 (the “Closing Date”). This Supplemental RumbleOn/RideNow Metrics Schedule and Financial Overview (collectively, the “Metrics Schedule”) is being filed with this Current Report on Form 8-K to present such metrics as if the RideNow Transaction was completed on January 1, 2020. All dollars are reported in thousands except per unit amounts.

 

This Metrics Schedule is provided for informational purposes only and is not intended to represent or be indicative of the consolidated results of operations or financial position the Company would have reported had the RideNow Transaction closed on January 1, 2020 and should not be taken as representative of our anticipated future consolidated results of operations or financial position.

 

This Metrics Schedule and the Pro Forma Adjusted EBITDA table set forth below should be read together with the Company’s audited historical financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, and its unaudited quarterly financial statements included in the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and 2020, June 30, 2021 and 2020, and September 30, 2021 and 2020, and RideNow’s audited historical financial statements, which were included in RumbleOn’s Current Report on Form 8-K filed on April 8, 2021, and its unaudited quarterly financial statements, which were included in the Company’s Current Reports on Form 8-K filed on June 21, 2021 and August 4, 2021.

 

 

 

 

Supplemental RumbleOn/RideNow Metrics Schedule

 

          2020   2021   2021 
          Qtr1   Qtr2   Qtr3   Qtr4   Qtr1   Qtr2   Qtr3   Nine-Months
Ended
9/30/2021
Powersports   Revenue New vehicle   $91,747   $163,624   $125,196   $135,258   $143,257   $142,732   $126,127   $412,116
  Retail used vehicle   35,691   37,109   28,819   26,427   38,135   55,012   59,052   152,199
  Wholesale1   26,385   12,643   12,895   13,011   11,381   28,821   21,642   61,844
  Total used vehicle revenue   62,076   49,752   41,714   39,438   49,516   83,833   80,694   214,043
  Finance and insurance, net   14,669   22,455   16,501   19,093   19,735   22,125   19,911   61,771
  Parts and service and other   36,724   40,534   43,836   43,802   43,529   47,481   48,297   139,307
  Total revenue   $205,216   $276,365   $227,247   $237,591   $256,037   $296,171   $275,029   $827,237
                                     
  Gross Profit New vehicle   $11,340   $26,841   $22,511   $25,786   $27,878   $29,920   $25,863   $83,661
  Retail used vehicle   5,456   6,849   6,735   6,526   7,054   10,397   9,818   27,269
  Wholesale1   1,917   438   1,601   1,091   2,840   6,772   3,711   13,323
  Total used vehicle   7,373   7,287   8,336   7,617   9,894   17,169   13,529   40,592
  Finance and insurance, net   14,669   22,455   16,501   19,093   19,735   22,125   19,911   61,771
  Parts and service and other   17,527   18,388   17,525   20,440   20,053   22,775   21,098   63,926
  Total gross profit   $50,909   $74,971   $64,873   $72,936   $77,560   $91,989   $80,401   $249,950
                                     
  Vehicle Sales New vehicle   6,247   11,413   8,109   8,603   9,028   9,215   7,524   25,767
  Retail used vehicle   3,245   3,440   2,645   2,285   2,866   3,865   4,044   10,775
  Wholesale   3,074   970   956   1,057   1,084   2,532   1,779   5,395
  Total used vehicle   6,319   4,410   3,601   3,342   3,950   6,397   5,823   16,170
  Total vehicles sold   12,566   15,823   11,710   11,945   12,978   15,612   13,347   41,937
    New-to-Used Ratio   0.99x   2.59x   2.25x   2.57x   2.29x   1.44x   1.29x   1.59x
  Revenue per vehicle New vehicle   $14,687   $14,337   $15,439   $15,722   $15,868   $15,489   $16,763   $15,994
  Retail used vehicle   $10,999   $10,788   $10,896   $11,565   $13,306   $14,233   $14,602   $14,125
  Wholesale   $8,583   $13,034   $13,488   $12,309   $10,499   $11,383   $12,165   $11,463
  Used vehicle   $9,824   $11,282   $11,584   $11,801   $12,536   $13,105   $13,858   $13,237
  Finance and insurance, net   $1,545   $1,512   $1,534   $1,754   $1,659   $1,692   $1,721   $1,690
  Parts and service and other   $3,869   $2,729   $4,076   $4,023   $3,660   $3,630   $4,175   $3,812
  Total revenue per vehicle3   $21,620   $18,607   $21,131   $21,821   $21,527   $22,643   $23,775   $22,638
                                     
  Gross Profit per vehicle New vehicle   $1,815   $2,352   $2,776   $2,997   $3,088   $3,247   $3,437   $3,247
  Used vehicle   $1,167   $1,652   $2,315   $2,279   $2,505   $2,684   $2,323   $2,510
  Finance and insurance   $1,545   $1,512   $1,534   $1,754   $1,659   $1,692   $1,721   $1,690
  Parts and service   $1,847   $1,238   $1,630   $1,877   $1,686   $1,741   $1,824   $1,749
  Total gross profit4   $3,517   $3,810   $4,403   $4,821   $4,835   $5,292   $5,126   $5,091
                                       
Automotive     Revenue   $113,632   $68,295   $99,315   $55,843   $84,071   $127,287   $105,298   $316,656
    Gross profit2   $5,553   $5,802   $12,842   $4,088   $6,211   $10,169   $6,525   $22,905
    Vehicles sold   4,603   2,835   3,516   1,787   2,494   3,300   3,028   8,822
    Revenue per vehicle   $24,687   $24,090   $28,247   $31,250   $33,709   $38,572   $34,775   $35,894
    Gross profit per vehicle   $1,206   $2,047   $3,652   $2,288   $2,490   $3,082   $2,155   $2,596
                                       
Transportation     Revenue1   $8,990   $8,252   $11,415   $7,230   $10,030   $14,518   $11,597   $36,145
    Gross profit   $2,000   $1,801   $2,067   $1,749   $1,989   $2,385   $2,455   $6,829
    Vehicles transported   21,027   19,191   21,238   13,989   18,907   23,502   20,284   62,693
    Revenue per vehicle transported   $428   $430   $537   $517   $530   $618   $572   $577
    Gross profit per vehicle transported   $95   $94   $97   $125   $105   $101   $121   $109

 

 

 

1 - Intercompany revenue and cost of sales for transportation services provided by Wholesale Express and vehicle sales between RumbleOn and RideNow before the Closing Date are included in this Metrics Schedule. These amounts are summarized in the Intercompany Transaction Table below.

2 - The Automotive segment Gross Profit includes the benefit of inventory reserve adjustments established after the Nashville Tornado of $2,935, $7,788, and $1,964 for Q1, Q2 and Q3 of 2020, respectively.
3 - Total revenue per vehicle for powersports represents total revenue divided by the number of retail powersports units sold.
4 - Total gross profit per vehicle for powersports represents the gross profit attributable to both (a) new and used powersport sales and (b) finance and insurance, net divided by the number of retail powersport units sold.

 

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RumbleOn/RideNow Financial Overview

 

    2020   2021   2021
    Qtr1   Qtr2   Qtr3   Qtr4   Qtr1   Qtr2   Qtr3   Nine-Months
Ended
9/30/2021
Revenue   $325,934   $352,324   $337,001   $300,058   $344,266   $417,479   $383,495   $1,145,240
                                 
Adjusted revenue1                                
Powersports   $168,492   $235,831   $183,411   $193,789   $212,508   $248,690   $226,732   $687,930
Automotive   113,632   68,295   99,315   55,843   84,071   127,287   105,298   316,656
Transportation and logistics   8,990   8,252   11,415   7,230   10,030   14,518   11,597   36,145
Parts and service and other   36,724   40,534   43,836   43,802   43,529   47,481   48,297   139,307
Total adjusted revenue   $327,838   $352,912   $337,977   $300,664   $350,138   $437,976   $391,924   $1,180,038
                                 
Gross profit   $58,462   $82,574   $79,782   $78,773   $85,407   $103,977   $87,857   $277,241
                                 
Adjusted gross profit1                                
Powersports   $33,382   $56,583   $47,348   $52,496   $57,507   $69,214   $59,303   $186,024
Automotive   5,553   5,802   12,842   4,088   6,211   10,169   6,525   22,905
Transportation and logistics   2,000   1,801   2,067   1,749   1,989   2,385   2,455   6,829
Parts and service and other   17,527   18,388   17,525   20,440   20,053   22,775   21,098   63,926
Total adjusted gross profit   $58,462   $82,574   $79,782   $78,773   $85,760   $104,543   $89,381   $279,684

 

 

1 - Intercompany revenue and cost of sales for transportation services provided by Wholesale Express and vehicle sales between RumbleOn and RideNow before the Closing Date are included in this Financial Overview. These amounts are summarized in the Intercompany Transactions Table below.

 

Intercompany Transactions Table

 

In the normal course of operations, RumbleOn utilizes transportation services of Wholesale Express. The following table provides the intercompany revenue and cost of revenue for these transportation services. In addition, during the nine-months ended September 30, 2021, and prior to the Closing Date, there were vehicle sales between RumbleOn and RideNow.

 

The Company believes including the transactions between RumbleOn and RideNow until the Closing Date provides the reader a better understanding of how the companies performed by recognizing the robust used powersports wholesale market through which both RumbleOn could have sold vehicles and RideNow could have purchased vehicles and thereby recognizing the actual volume of business both entities achieved pre-closing. It is important to note that aggregate gross margin is not duplicative in such analysis.

 

The intercompany revenue and cost of revenue for these sales is summarized in the table below.

 

    2020   2021   2021
    Qtr1   Qtr2   Qtr3   Qtr4   Qtr1   Qtr2   Qtr3   Nine-Months
Ended
9/30/2021
Transportation Services Provided by Wholesale Express                     
Revenue   $1,904   $588   $976   $606   $692   $1,437   $1,228   $3,357
Cost of Revenue   $1,904   $588   $976   $606   $692   $1,437   $1,228   $3,357
                                 
Vehicle Sales Between RumbleOn and RideNow                    
Revenue   -   -   -   -   $5,180   $19,060   $7,201   $31,441
Cost of Revenue   -   -   -   -   $4,827   $18,494   $5,677   $28,998

 

 

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Pro Forma Adjusted EBITDA

 

Pro Forma Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to Pro Forma Net Income (loss) 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.

 

Pro Forma Adjusted EBITDA is defined as Pro Forma Net Income (loss) adjusted to add back interest expense (including debt extinguishment), depreciation and amortization, changes in derivative liability, interest income and miscellaneous income, income taxes, and certain recoveries, charges and expenses, such as an insurance recovery, non-cash stock-based compensation costs, acquisition related costs, litigation expenses, and other non-recurring costs, as these recoveries, charges and expenses are not considered a part of the Company’s core business operations and are not an indicator of ongoing, future company performance. Pro Forma Net Income (loss) as set forth below was prepared pursuant to Article 11 of Regulation S-X.

 

Pro Forma Adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of the Company’s business. The Company presents Pro Forma Adjusted EBITDA because it believes it is frequently used by analysts, investors and other interested parties to evaluate companies in the Company’s industry. Further, the Company believes it is helpful in highlighting trends in the Company’s 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.

 

The following table reconciles Pro Forma Net Income (loss) to Pro Forma EBITDA for the periods presented:

 

    2020   2021   2021 
    Qtr1   Qtr2   Qtr3   Qtr4   Qtr1   Qtr2   Qtr3   Nine-Months
Ended
9/30/2021
Pro forma net income (loss)   $(16,392)   $17,735   $9,547   $8,024   $11,553   $30,013   $(16,731)   $24,835
Add Back:                                
Interest expense (incl debt extinguishment)   12,063   10,780   11,014   13,455   10,666   10,811   10,572   32,049
Depreciation and amortization   3,238   3,301   2,704   4,364   3,257   3,379   3,409   10,045
Interest income and miscellaneous income   (648)   (458)   (680)   (181)   (733)   (389)   (269)   (1,391)
Income taxes   (5,464)   5,912   3,182   2,675   3,851   10,004   (5,577)   8,278
EBITDA   (7,203)   37,270   25,767   28,337   28,594   53,818   (8,596)   73,816
Adjustments:                                
Impairment loss due to Nashville tornado   11,738   -   -   -   -   -   -   -
Impairment loss on fixed assets   178   -   -   -   -   -   -   -
Insurance recovery proceeds   -   (5,615)   -   -   -   -   (3,135)   (3,135)
Stock-based compensation   1,098   963   1,114   805   1,275   947   24,813   27,035
Change in derivative liability   117   (137)   14   (4)   21   2,235   6,518   8,774
Costs related to acquisition of RideNow   -   -   -   -   1,097   860   1,558   3,515
Other non-recurring costs   278   469   332   268   121   81   1,449   1,651
PPP loan forgiveness   -   -   -   -   -   (19,039)   (572)   (19,611)
Pro forma adjusted
EBITDA
  6,206   32,950   27,227   29,406   31,108   38,902   22,035   92,045
Pro forma adjustments1   31   31   31   31   383   597   1,545   2,525
Pro forma EBITDA1   $6,237   $32,981   $27,258   $29,437   $31,491   $39,499   $23,580   $94,570

 

 

1 - Pro Forma EBITDA represents the EBITDA of RumbleOn and RideNow before the net effects of the pro forma adjustments.

 

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Pro Forma Adjustments:

 

The historical financial statements of RumbleOn and RideNow have been adjusted in the Pro Forma Adjusted EBITDA table above to give effect to pro forma events that are (i) directly attributable to the business combination; (ii) are factually supportable; and (iii) expected to have a continuing impact on the combined results following the business combination. The following pro forma adjustments were made to compile this Pro Forma Adjusted EBITDA table:

 

1. Intercompany revenue and cost of sales for transportation services provided by Wholesale Express and vehicle sales between RumbleOn and RideNow before the Closing Date have been eliminated in the Pro Forma Adjusted EBITDA table above.  These amounts are summarized in the Intercompany Transaction Table above.
2. Amortization of preliminary valuation of intangible assets.
3. Amortization of stock-based compensation awarded in connection with the RideNow Transaction.
4. Interest expense, debt discount amortization and amortization of fees related to the Credit Agreement, dated August 30, 2021, among the Company, as borrower, the lenders party thereto, and Oaktree Fund Administration, LLC, as administrative agent and collateral agent.
5. Tax provisions (benefits) based on a blended federal and state statutory tax rate of 25%.

  

 

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