RumbleOn reports Q2 ’23 results

RumbleOn, Inc. has announced operational and financial results for the second quarter that ended June 30, 2023, with a revenue and unit sales increase over Q1.

Mark Tkach, RumbleOn’s interim CEO, states, “In a very short period of time, we’ve taken meaningful proactive measures to better position the business for 2023 and beyond. We have restructured our financing agreement, taken decisive actions to improve our balance sheet, cost structure and corporate governance, giving us additional flexibility to execute on our strategies.”

Tkach continues: “Our highly motivated team has a set of priorities to capitalize on the substantial opportunity in the fragmented powersports landscape. I am confident that our efforts will drive improved, and more consistent, sales and profitability performance over the long-term.”

The following provides operating highlights related to continuing operations:

• Total Unit Sales 20,277 units increased 17.7%, driven by typical seasonality in the powersports business and strong growth of new vehicle sales, offset by lower than expected used unit sales.
• Total Revenue of $382.7 million increased 14.5%.
• Total Gross Profit of $106.4 million increased 17.8% and Gross Profit Margin was 27.8%, up from 27.0%. Sequential increase in gross profit margin was in line with our prior expectations.
• Operating Expenses were $105.6 million, or 27.6% of revenue, compared to $91.0 million, or 27.2% of revenue. Total stock-based compensation was $4.9 million up from $2.1 million in the prior quarter. If expenses related to key one-time occurrences were excluded, Q2 Operating Expenses would have remained flat sequentially while revenue increased $48.3 million.
• Loss from Continuing Operations was $(12.8) million, or (3.4)% of revenue, compared to $(16.7) million, or (5.0)% of revenue. Loss per diluted share was $(0.78) compared to $(1.03).
• Adjusted Net Income (Loss) was $0.3 million, or 0.1% of revenue, compared to $(9.4) million or (2.8)% of revenue. Adjusted net income per diluted share was $0.02 compared to $(0.58).
• Adjusted EBITDA was $23.6 million, compared to $10.8 million. The sequential increase in adjusted EBITDA of 118.6% was driven by expected seasonality in the Powersports segment coupled with early effects of recently implemented cost reductions.
• Cash and Restricted Cash as of June 30, 2023 was approximately $57.1 million, and total debt was $374.9 million. Availability under our short-term revolving floorplan credit facilities to finance inventory totaled approximately $150.0 million.
• Total Available Liquidity, defined as unrestricted cash plus availability under floorplan credit facilities for inventory on hand at June 30, 2023, totaled approximately $89.7 million.
• Cash Flow used in Operating Activities was $(6.3) million for the six months ended June 30, 2023.

Full Year 2023 — Financial Outlook

RumbleOn says it is revising its outlook for the full year 2023 as follows:

• Total powersports and transportation revenue of $1.38 billion to $1.48 billion, compared to $1.46 billion in 2022.
• Powersports GPU of approximately $5,300 to $5,400 compared to $6,159 in 2022.
• Adjusted EBITDA of $55 million to $65 million, compared to $120 million in 2022.

Blake Lawson, RumbleOn’s CFO, states, “I am thrilled to be partnered once again with Mark Tkach as we endeavor to improve the capital structure, reduce costs and grow the business sensibly. The steps that we have already taken position us well to create substantial future shareholder value.”