CHARLOTTE, N.C., Nov. 09, 2017 (GLOBE NEWSWIRE) -- 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.”
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.
- 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.
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.
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.
Megan Crudele (Investors)
Source: RumbleOn, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Used vehicle sales:
|Other sales and revenue||134,573||-||134,573||-|
|Subscription and other fees||27,197||-||100,668||-|
|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|
|Net loss before provision for income taxes||(2,317,503||)||(40,059||)||(5,132,623||)||(66,991||)|
|Benefit for income taxes||-||-||-||-|
|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||)||$||(0.01||)|
CONDENSED CONSOLIDATED BALANCE SHEETS
|September 30, 2017||December 31, 2016|
|Total current assets||2,519,385||1,352,247|
|Property and Equipment - Net of Accumulated Depreciation||2,166,326||-|
|Intangible Assets, net||121,765||45,515|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued liabilities||$||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:|
|Accrued interest payable - related party||21,736||5,508|
|Deferred tax liability||-||78,430|
|Total long-term liabilities||1,436,673||85,220|
|Commitments and Contingencies|
|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, $0.001 par value, 99,000,000 shares authorized, 9,018,541 and 6,400,000 shares issued and outstanding as of September 30, 2017 and December 31, 2016||9,019||6,400|
|Additional paid in capital||8,749,566||1,534,015|
|Total stockholders' equity||3,179,988||1,093,441|
|Total liabilities and stockholders' equity||$||8,047,476||$||1,397,762|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|CASH FLOWS FROM OPERATING ACTIVITIES|
|Adjustments to reconcile net income|
|to net cash used in operating activities:|
|Depreciation and amortization||302,697||1,425|
|Amortization of debt discount||91,877||-|
|Interest expense on conversion of debt||196,076||-|
|Share based compensation expense||287,550||-|
|Changes in operating assets and liabilities:|
|Increase in prepaid expenses||(121,846||)||(4,167||)|
|Increase in inventory||(1,244,658||)|
|Increase in accounts receivable||(320,575||)||-|
|Increase in other current assets||(174,419||)||-|
|Increase in accounts payable and accrued liabilities||1,683,442||18,095|
|Increase in accrued interest payable - related party||43,351||(10,478||)|
|Net cash used in operating activities||(4,389,128||)||(62,116||)|
|CASH FLOWS FROM INVESTING ACTIVITIES|
|Cash used for acquisitions||(750,000||)||-|
|Purchase of property and equipment||(600,175||)||-|
|Net cash used in investing activities||(1,785,272||)||-|
|CASH FLOWS FROM FINANCING ACTIVITIES|
|Proceeds from note payable||2,167,000||214,358|
|Repayments for note payable - related party||-||(158,000||)|
|Proceeds from sale of common stock||3,313,040||7,000|
|Net cash provided by financing activities||5,480,040||63,358|
|NET CHANGE IN CASH||(694,360||)||1,242|
|CASH AT BEGINNING OF PERIOD||1,350,580||3,713|
|CASH AT END OF PERIOD||$||656,220||$||4,955|