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Published: 2021-03-15 07:19:05 ET
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EX-99.1 2 rmbl_ex991.htm PRESS RELEASE, DATED MARCH 15, 2021 rmbl_ex991
 
 
Exhibit 99.1
 
RumbleOn Announces Full Year 2020 Financial Results
 
Grew Gross Profit Per Vehicle Sold by 100% Year-over-Year
 
Management to host a conference call today, March 15, 2021, at 8:30am ET
 
DALLAS - 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.

Source: RumbleOn, Inc.
 
Investor Relations:
The Blueshirt Group
Dylan Solomon
investors@rumbleon.com
 
 
 
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 Two 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
RumbleOn, Inc.
Reconciliation of Adjusted EBITDA to Net Loss
(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)