Attached files
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| 8-K - CURRENT REPORT - RumbleOn, Inc. | rmbl_8k.htm |
Exhibit 99.1
RumbleOn, Inc. Announces Financial Results
for the First Quarter 2018
CHARLOTTE,
N.C., April 30, 2018 (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 vehicles in one
online location with an emphasis on motorcycles and other
powersports, today announced financial results for the three-month
period ended March 31, 2018.
Marshall
Chesrown, RumbleOn’s Chief Executive Officer, stated,
“We are pleased with the continued momentum in our business
during the first quarter. We remained focused on rapidly growing
the business and improving unit economics, all while delivering a
great consumer experience. Looking forward, we are excited about
the opportunities for RumbleOn, as we continue to scale and invest
in the business. Ultimately, we are leveraging our unique model to
differentiate the business and set us apart as the clear leader in
a fragmented market, driving significant growth and long-term
shareholder value.”
Financial Summary
Three-month period ended March 31, 2018
●
Revenue totaled
$8.1 million, driven by the sale of 878 vehicles;
●
Total average gross
profit per vehicle was $788;
●
Total operating
loss was $3.5 million;
●
Net loss was $3.6
million; and
●
Net loss per share
(basic and diluted) was $0.28, based on 12.9 million shares of
common stock outstanding.
Three-month period ended March 31, 2017
●
Revenue totaled
$0.04 million, representing subscription fees;
●
Total operating
loss was $0.7 million;
●
Net loss was $0.9
million; and
●
Net loss per share
(basic and diluted) was $0.13, based on 7.3 million shares of
common stock outstanding.
The
Company had no vehicle sales during the three-month period ended
March 31, 2017.
Recent Developments
●
On February 21,
2018, the Company entered into a floor plan line of credit for $25
million with Ally Bank.
●
On April 30, 2018,
the Company entered into a $15 million Senior Secured Credit
Facility with Hercules Capital, Inc.
Conference Call Details
RumbleOn will host a conference call today, April 30, 2018, at 8:30
am Eastern Time to discuss financial results. Investors and
analysts can participate in the conference call by dialing (800)
263-0877 or (323) 794-2094 and using conference ID #2400413.
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 April 30, 2018, until 11:59
p.m. ET on May 14, 2018. The telephone replay is available by
calling (844) 512-2921. The access code is
2400413.
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 vehicles in one online location.
RumbleOn’s goal is to transform the way pre-owned 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 vin specific pre-owned vehicles
with an emphasis on motorcycles and other powersports. Serving both
consumers and dealers, through its 100% online marketplace
platform, RumbleOn makes cash offers for the purchase of pre-owned
vehicles. In addition, RumbleOn offers a large inventory of
pre-owned 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, the
conference call and webcast. 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)
ICR
RumbleOn@icrinc.com
646-277-1200
Source:
RumbleOn, Inc.
RumbleOn, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
|
|
Three Months
Ended
March
31,
|
|
|
|
2018
|
2017
|
|
Revenue:
|
|
|
|
Pre-owned vehicle
sales
|
$8,027,680
|
$-
|
|
Other sales and
revenue
|
52,525
|
38,889
|
|
Total Revenue
|
8,080,205
|
38,889
|
|
|
|
|
|
Expenses:
|
|
|
|
Cost of
revenue
|
7,521,301
|
34,688
|
|
Selling, general
and administrative
|
3,880,492
|
655,208
|
|
Depreciation and
amortization
|
205,767
|
60,085
|
|
Total
expenses
|
11,607,560
|
749,981
|
|
|
|
|
|
Operating
loss
|
(3,527,355)
|
(711,092)
|
|
|
|
|
|
Interest
expense
|
86,521
|
211,803
|
|
|
|
|
|
Net loss before
provision for income taxes
|
(3,613,876)
|
(922,895)
|
|
|
|
|
|
Benefit for income
taxes
|
-
|
-
|
|
|
|
|
|
Net
loss
|
$(3,613,876)
|
$(922,895)
|
|
|
|
|
|
Weighted average
number of common shares outstanding - basic and fully
diluted
|
12,928,541
|
7,263,492
|
|
|
|
|
|
Net loss per share
- basic and fully diluted
|
$(0.28)
|
$(0.13)
|
RumbleOn, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
|
|
As
of
March
31,
2018
|
As
of
December
31,
2017
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash
|
$5,378,282
|
$9,170,652
|
|
Restricted
cash
|
200,000
|
-
|
|
Accounts
receivable, net
|
340,059
|
577,107
|
|
Inventory
|
3,125,315
|
2,834,666
|
|
Prepaid
expense
|
216,826
|
308,880
|
|
Total current
assets
|
9,260,482
|
12,891,305
|
|
|
|
|
|
Property
and equipment, net
|
3,363,029
|
3,360,832
|
|
Goodwill
|
1,850,000
|
1,850,000
|
|
Other
assets
|
46,572
|
50,693
|
|
Total
assets
|
$14,520,083
|
$18,152,830
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
and other accrued liabilities
|
$1,293,949
|
$1,179,216
|
|
Accrued interest
payable
|
55,715
|
33,954
|
|
Current portion of
long-term debt
|
585,072
|
1,081,593
|
|
Total current
liabilities
|
1,934,736
|
2,294,763
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
Note
payable
|
1,506,524
|
1,459,410
|
|
Accrued interest
payable - related party
|
-
|
32,665
|
|
Total long-term
liabilities
|
1,506,524
|
1,492,075
|
|
|
|
|
|
Total
liabilities
|
3,441,260
|
3,786,838
|
|
|
|
|
|
Commitments
and contingencies (Notes 4, 5, 7, 12, 13)
|
|
|
|
|
|
|
|
Stockholders’
equity:
|
|
|
|
Preferred stock,
$0.001 par value, 10,000,000 shares authorized, no shares issued
and outstanding as of March 31, 2018 and December 31,
2017
|
-
|
-
|
|
Common A stock,
$0.001 par value, 1,000,000 shares authorized, 1,000,000 shares
issued and outstanding as of March 31, 2018 and December 31,
2017
|
1,000
|
1,000
|
|
Common B stock,
$0.001 par value, 99,000,000 shares authorized, 11,928,541 shares
issued and outstanding as of March 31, 2018 and December 31,
2017
|
11,929
|
11,929
|
|
Additional paid in
capital
|
23,699,067
|
23,372,360
|
|
Accumulated
deficit
|
(12,633,173)
|
(9,019,297)
|
|
Total
stockholders’ equity
|
11,078,823
|
14,365,992
|
|
|
|
|
|
Total liabilities
and stockholders’ equity
|
$14,520,083
|
$18,152,830
|
RumbleOn, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
Three Months Ended
March 31,
|
|
|
|
2018
|
2017
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net
loss
|
$(3,613,876)
|
$(922,895)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
205,767
|
60,085
|
|
Amortization of
debt discount
|
47,114
|
|
|
Interest expense on
conversion of debt
|
-
|
196,076
|
|
Share based
compensation expense
|
326,707
|
-
|
|
|
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
Decrease (increase)
in prepaid expenses
|
92,054
|
(38,452)
|
|
Increase in
inventory
|
(290,649)
|
-
|
|
Decrease
(increase)in accounts receivable
|
237,048
|
(16,187)
|
|
Increase in
accounts payable and accrued liabilities
|
114,733
|
535,201
|
|
Decrease in accrued
interest payable
|
(10,904)
|
-
|
|
Decrease in other
assets
|
4,121
|
-
|
|
|
|
|
|
Net cash used in
operating activities
|
(2,887,885)
|
(186,172)
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Cash used for
acquisitions
|
-
|
(750,000)
|
|
Technology
development
|
(185,968)
|
(127,358)
|
|
Purchase of other
assets
|
-
|
(42,775)
|
|
Purchase of
property and equipment
|
(21,996)
|
-
|
|
Net cash used in
investing activities
|
(207,964)
|
(920,133)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from note
payable
|
585,072
|
667,000
|
|
Repayments of line
of credit-floor plan
|
(1,081,593)
|
-
|
|
Proceeds from sale
of common stock
|
-
|
3,113,040
|
|
Net cash (used in)
provided by financing activities
|
(496,521)
|
3,780,040
|
|
|
|
|
|
NET CHANGE IN
CASH
|
(3,592,370)
|
2,673,735
|
|
|
|
|
|
CASH AT BEGINNING
OF PERIOD
|
9,170,652
|
1,350,580
|
|
|
|
|
|
CASH AND RESTRICTED
CASH AT END OF PERIOD
|
$5,578,282
|
$4,024,315
|