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8-K - CURRENT REPORT - RumbleOn, Inc. | rmbl_8k.htm |
Exhibit
99.1
RumbleOn Updates Preliminary Fourth Quarter 2019 Operating Results;
Reschedules
Fourth Quarter and Fiscal Year 2019 Financial
Results Conference Call
Expected Fourth Quarter Total Unit Sales of 6,432; Percent of Unit
Sales to Consumers of 13.4%; and Gross Margin of 7.1%
Dallas,
Texas, March 16, 2020 – RumbleOn, Inc (NASDAQ: RMBL), the
e-commerce company using innovative technology to simplify how
dealers and consumers buy, sell, trade or finance pre-owned
vehicles, today updated preliminary fourth quarter 2019 operating
results. The Company also announced that it will reschedule its
fourth quarter and fiscal year 2019 earnings release and conference
call. The conference call and live webcast was previously scheduled
for Tuesday, March 17, 2020 at 8:30 a.m. ET. RumbleOn now expects
to report its full fourth quarter and fiscal year 2019 results and
file its Form 10-K with the Securities and Exchange Commission on
March 30, 2020.
For the
three months ended December 31, 2019, RumbleOn expects the
following selected results:
●
Total revenue of
$127.0 million, versus the previously expected range of $124.0
million to $127.0 million, bringing the expected full year 2019
revenue to $840.6 million.
●
Total unit sales of
6,432, ahead of the previously expected range of 6,200 to 6,250
units, bringing the expected full year 2019 total unit sales to
43,143.
●
Total unit sales to
consumers of 13.4%, ahead of the previously expected range of 12.5%
to 13.0%, and up from 7.5% in Q3.
●
Total gross margin
of 7.1%, ahead of the previously expected range of 6.7% to 7.0%,
and up from 5.5% in Q3.
●
As of December 31,
2019, RumbleOn had approximately 3,332 units on hand.
●
As of December 31,
2019, cash and cash equivalents is expected to be approximately
$6.73 million, which includes $6.67 million of restricted cash.
Subsequent to year end, RumbleOn raised net proceeds of $19.3
million in capital through a public offering of Class B common
stock and private placement of convertible notes, both of which
closed on January 14, 2020.
Despite
the ongoing damage assessment of its Nashville facilities, RumbleOn
continues to operate its other locations and serve its customers
nationwide. The Company is evaluating the impact of a number of
factors and has reached the decision to reschedule its fourth
quarter and fiscal year 2019 financial results and conference call.
These factors include: (i) the continuing assessment by the company
and its insurance carriers of the costs and damages sustained by
the Company’s Nashville facilities and inventory from the
tornadoes on March 3, 2020 and continued work developing and
implementing a final recovery plan; (ii) evaluation of the
potential effects of temporarily closing its Dallas corporate
office as a result of precautions taken in consideration of the CDC
guidelines and recommendations regarding COVID-19; and (iii) the
potential impact on its distribution capability resulting from its
regional partners’ nationwide temporary change in format for
conducting their auction business due to COVID-19
concerns.
The
preliminary financial data included above has been prepared by, and
is the responsibility of, RumbleOn’s management.
RumbleOn’s independent auditors have not audited, reviewed,
or compiled such preliminary financial data. These preliminary
operating results are not a comprehensive statement of
RumbleOn’s financial results as of and for the fourth quarter
or the year ended December 31, 2019 and should not be viewed as a
substitute for full consolidated financial statements prepared in
accordance with accounting principles generally accepted in the
United States. Complete Financial results will be provided in
RumbleOn’s 10-K which will be filed with the SEC on or before
March 30, 2020.
About RumbleOn
RumbleOn
(NASDAQ: RMBL) is an e-commerce company that uses innovative
technology to simplify how dealers and customers buy, sell, trade,
or finance pre-owned vehicles through RumbleOn’s 100% online
marketplace. Leveraging its capital-light network of 17 regional
partnerships and innovative technological solutions, RumbleOn is
disrupting the old-school pre-owned vehicle supply chain by
providing users with the most efficient, timely and transparent
transaction experience. For more information, please visit
http://www.rumbleon.com.
Forward-Looking Statements
This
press release may contain “forward-looking statements”
as that term is defined under the Private Securities Litigation
Reform Act of 1995 (PSLRA), which statements may be identified by
words such as “expects,” “projects,”
“will,” “may,” “anticipates,”
“believes,” “should,”
“intends,” “estimates,” and other words of
similar meaning. Readers are cautioned not to place undue reliance
on these forward-looking statements, which are based on our
expectations as of the date of this press release and speak only as
of the date of this press release and are advised to consider the
factors listed under the heading “Forward-Looking
Statements” and “Risk Factors” in the
Company’s SEC filings, as may be updated and amended from
time to time. We undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
Investor
Relations:
The
Blueshirt Group
Whitney
Kukulka
investors@rumbleon.com
Source:
RumbleOn, Inc.