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 Third Quarter 2017
CHARLOTTE,
N.C., Nov. 9, 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.
-1-
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.
-2-
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)
|
-3-
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
|
-4-
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
|
-5-