Blueprint
EXHIBIT 99.1
RumbleOn, Inc. Announces Financial Results for the Fourth Quarter
and Fiscal Year 2017
CHARLOTTE, N.C., Feb. 27, 2018 (GLOBE NEWSWIRE) -- RumbleOn, Inc.
(NASDAQ:RMBL), 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
with an initial emphasis on motorcycles and other powersports,
today announced financial results for the three-months and year
ended December 31, 2017.
Marshall Chesrown, RumbleOn’s President and Chief Executive
Officer, stated, “We are very pleased with all that we
accomplished as a business in 2017, including launching and rapidly
expanding the only end-to-end online marketplace that provides
customers an effective, seamless, and hassle-free way to purchase
pre-owned recreational vehicles. This unique and compelling
business model has enabled RumbleOn to carve out a niche in the
highly fragmented recreational vehicle marketplace. As we look
ahead, we will continue enhancing our technology, expanding our
product to different market segments, and offering an unmatched
customer experience, which we believe will position us well to
drive further expansion in the business.
Financial Summary
There were no sales of vehicles during the three-months and fiscal
year ended December 31, 2016. As a result, comparative
financial results for the three-months and fiscal year ended
December 31, 2016 have been omitted.
Three-month period ended December 31, 2017
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Revenue
totaled $3.44 million, driven by the sale of 355
units;
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Total
average gross profit per unit was $764;
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Total
operating loss was $3.2 million;
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Net
loss was $3.4 million; and
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Net
loss per share was $0.28, based on 12.3 million weighted average
shares of common stock outstanding.
Fiscal year ended December 31, 2017
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Revenue
totaled $7.3 million, driven by the sale of 678 units;
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Total
average gross profit per unit was $750;
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Total
operating loss was $8.0 million;
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Net
loss was $8.6 million; and
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Net
loss per share was $0.86, based on 9.9 million weighted average
shares of common stock outstanding.
Recent Developments
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On
February 16, 2018, the Company entered into a floor plan line of
credit with Ally Bank Dealer Services for up to $25 million through
its wholly-owned subsidiary, RMBL Missouri, LLC.
Outlook
As our platform and business model begins to achieve scale, for the
first quarter of 2018 we estimate:
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Revenue
in the range of $7.2 million to $7.5 million;
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Net
loss ranging from $3.0 to $3.6 million; and
●
We
anticipate non-Harley Davidson units to approach 45% of vehicle
sales, which will result in an average selling price ranging from
$9,200 to $9,400 and gross margins range of 8% to 10%.
For the full year 2018, we estimate:
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Revenue
in excess of $100 million;
●
We
expect that our sales mix between Harley Davidson and non-Harley
Davidson vehicles will be about 50% each which is more in line with
the overall market sales mix, and we anticipate that this will
result in an average selling price range of $9,000 to $9,200 and a
gross margin range of 12.5% to 14.5%; and
●
Positive
cash-flow from operations in the second half of the
year.
Conference Call Details
RumbleOn will host a conference call today, February 27, 2018, at
8:30 am Eastern Time to discuss financial results. Investors and
analysts can participate in the conference call by dialing (800)
289-0517 or (323) 794-2423 and using conference ID
# 5105639.
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 February 27,
2018, until 11:59 p.m. ET on March 13, 2018. The telephone
replay is available by calling (844) 512-2921. The access
code is 5105639.
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 motorcycles and other
powersport and recreational 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 road vin specific pre-owned vehicles with an initial
emphasis on motorcycles and other powersports. Serving both
consumers and dealers, through its 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 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, 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.
Contact:
Megan Crudele (Investors)
ICR
RumbleOn@icrinc.com
646-277-1200
Source: RumbleOn, Inc.
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RUMBLEON, INC.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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For the Three
Months ended December 31,
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For the Year
ended December 31,
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Revenue:
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Consumer
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$556,944
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$-
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$2,183,808
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$-
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Dealer
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2,836,814
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-
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4,836,262
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-
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Other Sales and
Revenue
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24,658
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-
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159,230
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-
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Subscription
fees
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25,933
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-
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126,602
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-
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Total
Revenue
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3,444,349
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-
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7,305,902
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-
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Expenses:
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Cost of
Sales
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3,400,338
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-
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7,027,793
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Selling, general
and administrative
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2,896,783
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153,358
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7,586,999
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211,493
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Depreciation And
Amortization
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365,770
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475
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668,467
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1,900
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Total
expenses
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6,662,891
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153,833
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15,283,259
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213,393
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Operating
loss
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(3,218,542)
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(153,833)
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(7,977,357)
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(213,393)
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Interest
Expense
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222,158
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4,267
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595,966
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11,698
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Net loss before
benefit for income taxes
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(3,440,700)
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(158,100)
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(8,573,323)
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(225,091)
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Benefit for Income
taxes
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-
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-
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-
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513
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Net
Loss
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$(3,440,700)
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$(158,100)
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$(8,573,323)
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$(224,578)
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Weighted average
number of shares outstanding
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12,327,563
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5,822,826
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9,917,584
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5,581,370
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Net loss per
share-basic and fully-diluted
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$(0.28)
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$(0.03)
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$(0.86)
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(0.04)
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RUMBLEON, INC.
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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FOR THE TWO YEAR ENDED DECEMBER 31, 2017
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CASH
FLOWS FROM OPERATING ACTIVITIES
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Net
loss
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$(8,573,323)
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$(224,578)
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Adjustments
to reconcile net loss
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to
net cash used in operating activities:
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Depreciation
and amortization
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668,467
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1,900
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Amortization
of debt discount
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276,076
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1,282
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Interest
expense on conversion of debt
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196,076
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Share
based compensation expense
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503,023
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Impairment
of asset
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792
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Increase
in deferred tax liability
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(513)
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Changes
in operating assets and liabilities:
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Increase
in prepaid expenses
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(307,213)
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(1,667)
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Increase
in inventory
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(2,834,666)
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Increase
in accounts receivable
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(577,107)
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Increase
in accounts payable and accrued interest
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960,115
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210,302
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(Increase)
decrease in accrued interest payable
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70,237
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(7,494)
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Increase
in other assets
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(5,178)
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-
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Net
cash used in provided by operating activities
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(9,623,493)
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(19,976)
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CASH
FLOWS FROM INVESTING ACTIVITIES
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Cash
used for acquisitions
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(750,000)
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-
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Technology
development
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(506,786)
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-
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Purchase
of other assets
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(45,515)
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Purchase
of property and equipment
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(622,512)
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-
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Net
cash used in investing activities
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(1,879,298)
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(45,515)
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CASH
FLOWS FROM FINANCING ACTIVITIES
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Proceeds
from note payable
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3,248,593
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214,358
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Repayments
for note payable
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(1,650,000)
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(158,000)
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Proceeds
from sale of common stock
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17,724,270
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1,354,000
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Donated
capital
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-
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2,000
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Net
cash provided by financing activities
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19,322,863
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1,412,358
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NET
CHANGE IN CASH
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7,820,072
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1,346,867
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CASH
AT BEGINNING OF PERIOD
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1,350,580
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3,713
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CASH
AT END OF PERIOD
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$9,170,652
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$1,350,580
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RUMBLEON, INC.
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CONSOLIDATED BALANCE SHEETS
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FOR THE TWO YEAR ENDED DECEMBER 31, 2017
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ASSETS
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Current
assets:
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Cash
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$9,170,652
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$1,350,580
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Accounts
Receivable
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577,107
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-
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Inventory
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2,834,666
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-
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Prepaid
expense
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308,880
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1,667
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Other
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-
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Total current
assets
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12,891,305
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1,352,247
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Property
and Equipment - Net of Accumulated Depreciation
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3,360,832
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-
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Goodwill
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1,850,000
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-
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Other
assets
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50,693
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45,515
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5,261,525
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45,515
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Total
assets
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$18,152,830
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$1,397,762
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LIABILITIES
AND STOCKHOLDERS' EQUITY
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Current
liabilities:
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Accounts payable
and accrued liabilities
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$1,179,216
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$219,101
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Accrued interest
payable
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33,954
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-
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Current portion of
long-term debt
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1,081,593
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-
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Total current
liabilities
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2,294,763
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219,101
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Long term
liabilities:
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Note
payable
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1,459,410
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1,282
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Accrued interest
payable
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32,665
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5,508
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Deferred tax
liability
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-
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78,430
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Total long-term
liabilities
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1,492,075
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85,220
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Total
liabilities
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3,786,838
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304,321
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Commitments
and Contingencies
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-
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-
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Stockholders'
equity:
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Common A stock,
$0.001 par value, 10,000,000 shares
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authorized,
1,000,000 shares issued and outstanding
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as of December 31,
2017 and none outstanding at December 31, 2016
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1,000
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-
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Common B stock,
$0.001 par value, 99,000,000 shares
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authorized,
11,928,541 and 6,400,000 shares issued and outstanding
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as of December 31,
2017 and 2016
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11,929
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6,400
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Additional paid in
capital
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23,372,360
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1,534,015
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Subscriptions
receivable
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-
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(1,000)
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Accumulated
deficit
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(9,019,297)
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(445,974)
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Total stockholders'
equity
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14,365,992
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1,093,441
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Total liabilities
and stockholders' equity
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$18,152,830
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$1,397,762
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