RumbleOn, Inc. Announces Financial Results for the First Quarter 2018

Charlotte, North Carolina, UNITED STATES

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  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  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.

Megan Crudele (Investors)

Source: RumbleOn, Inc.

RumbleOn, Inc. 
Condensed Consolidated Statements of Operations 
  Three Months Ended
March 31,
Revenue: 2018  2017 
Pre-owned vehicle sales $8,027,680  $- 
Other sales and revenue  52,525   38,889 
Total Revenue  8,080,205   38,889 
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
  As of
March 31,
  As of
December 31,
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 
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
  Three Months Ended March 31,   
  2018  2017   
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 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)
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