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.”
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)
ICR
RumbleOn@icrinc.com
646-277-1200
Source: RumbleOn, Inc.
RUMBLEON, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited) |
|
| |
|
|
|
|
|
|
| |
|
Three-months
ended
September 30, |
|
|
Nine-months
ended
September 30, |
|
| |
|
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
ended
September 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 |
|
