On November 12, RideNow parent RumbleOn reported its Q3 financials. Compared to Q323, revenue was down 12.7% and net loss totaled $11.2 million compared to net loss of $16.5 million. New CEO Mike Kennedy concedes market headwinds proved to be a challenge. “During the third quarter, our team navigated an incrementally more challenging environment and delivered strong performance on key areas of the business.
Kennedy adds RumbleOn will stay the course. “Our goal communicated earlier this year to reduce new inventories by the end of 2024 is largely on track. Operating cash flows continue to significantly outperform compared to last year. Our SG&A as a percent of gross profit dollars has decreased, which evidences the increasing productivity of our operations, and we expect to drive continuous improvements in further cost optimization.”
Q3 HIGHLIGHTS
• Received commitments for $30.0 million of incremental capital from our three largest shareholders, of which $10 million is in the form of a backstopped common equity rights offering
• Executed term loan credit agreement amendment giving the business more flexibility to operate
• Engaged an investment bank to explore a refinancing of the Company’s debt
• Reduced inventories by $53.9 million and floor plan notes payable by $52.9 million during the quarter
• Operating cash inflows for the first nine months totaled $68.6 million compared to cash outflows of $18.5 million in 2023
• Reduced Non-Vehicle Net Debt by $25.9 million in the first nine months of 2024
• Acquired a Harley-Davidson dealership in Massachusetts in August 2024
“During the third quarter, our team navigated an incrementally more challenging environment and delivered strong performance on key areas of the business,” he notes. “Our goal communicated earlier this year to reduce new inventories by the end of 2024 is largely on track. Operating cash flows continue to significantly outperform compared to last year. Our SG&A as a percent of gross profit dollars has decreased, which evidences the increasing productivity of our operations, and we expect to drive continuous improvements in further cost optimization,” states Kennedy.
“I am incredibly proud of the team and their resilience in this tough environment. In addition, we have received significant support from our three largest shareholders, which aligns with our goal to deleverage our balance sheet and lower our cost of capital. We believe all of this is laying the groundwork for an improved 2025,” Kennedy concludes.
