Billed as the largest powersports retailer in North America, RumbleOn announced operational and financial results for the three months ended September 30, 2023. Among the Third Quarter 2023 Financial & Operational Highlights:
• Total Unit Sales of 17,573, comprised of 10,851 New Units and 6,722 Used Units, resulting in New:Used ratio of 1.6x, a slight decrease from the prior quarter
• Total Company Revenue of $338.1 million, down 11.7% sequentially, driven by normal seasonal trends.
• Total Company Gross Profit of $91.9 million; Total Company Gross Profit Margin of 27.2% decreased 60 bps sequentially
• Net Loss from Continuing Operations of $16.5 million with Loss per Share from Continuing Operations of $0.99
• Adjusted Net Loss of $11.9 million with Adjusted Diluted Loss per Share of $0.71
• Adjusted EBITDA of $13.2 million, impacted by lower used unit sales and GPU, partially offset by the positive impact from SG&A reductions
• Announced $100 million Rights Offering
• Reached agreement with primary creditor for revised leverage covenants
• Used net proceeds from sale leaseback of Real Estate portfolio to repay $47 million of debt
Mike Kennedy, RumbleOn's Chief Executive Officer, stated, "I am thrilled to join RumbleOn at such an exciting time in the transformation journey. I look forward to bringing my extensive industry experience to guide the company in its next chapter. During the quarter, the team made significant progress towards strengthening our balance sheet and cutting costs, positioning the company for future growth and success."
Kennedy continued, "Looking ahead, the entire leadership team and the Board are laser focused on driving growth and profitability as well as a disciplined capital allocation plan to effectively deliver value for our shareholders."
Third Quarter 2023 - Summary Financial Results
Reconciliation of GAAP to non-GAAP financial measures are provided in accompanying financial schedules.
Unless otherwise noted, all comparisons in the narrative are on a sequential basis for the three months ended September 30, 2023, as compared to the three months ended June 30, 2023. The following table provides operating highlights related to continuing operations.
CHART 1
Total Unit Sales 17,573 units decreased 13.3%, driven by typical seasonality in the powersports business.
Total Revenue of $338.1 million decreased 11.7%.
Total Gross Profit of $91.9 million decreased 13.6% and Gross Profit Margin was 27.2%, down from 27.8%. Sequential decrease in gross profit margin was in line with our prior expectations.
Operating Expenses were $92.2 million, or 27.3% of revenue, compared to $105.6 million, or 27.6% of revenue. Total stock-based compensation was $3.1 million compared to $4.9 million in the prior quarter.
Loss from Continuing Operations was $16.5 million, or 4.9% of revenue, compared to $12.8 million, or 3.4% of revenue. Loss per diluted share was $0.99 compared to $0.78.
Adjusted Net Income (Loss) was $(11.9) million, or (3.5)% of revenue, compared to $0.3 million or 0.1% of revenue. Adjusted net income (loss) per diluted share was $(0.71) compared to $0.02.
Adjusted EBITDA was $13.2 million, compared to $23.6 million. The 44.2% sequential decrease in Adjusted EBITDA was driven by the impact of lower unit sales as expected due to the seasonality in the Powersports segment partially offset by the effects of recently implemented cost reductions.
Cash and Restricted Cash as of September 30, 2023 was approximately $59.5 million, and total debt was $369.9 million.
Total Available Liquidity, defined as unrestricted cash plus availability under floor plan credit facilities for inventory on hand at September 30, 2023, totaled approximately $73.6 million.
Cash Flow used in Operating Activities was $19.3 million for the nine months ended September 30, 2023.
Weighted Average Basic and Diluted Shares of Class A and Class B common stock outstanding were 16,665,709 and 16,452,254 for the three months and nine months ended September 30, 2023, respectively. As of September 30, 2023, RumbleOn had 16,735,391 total shares of Class B common stock and 50,000 shares of Class A common stock outstanding.
Full Year 2023/2024 - Financial Outlook
RumbleOn is reaffirming its outlook for the full year 2023 and full year 2024: The full year 2023 Outlook calls for:
Total Powersports and Transportation Revenue of $1.38 billion to $1.48 billion.
Powersports GPU of approximately $5,300 to $5,400.
Adjusted EBITDA of $55 million to $65 million.
Full statement here:
https://investors.rumbleon.com/RumbleOn-Reports-Third-Quarter-2023-Financial-Results-11-7-2023