RumbleON Inc (RMBL) Reports Q3 2023 Financial Results: Net Loss of $16.5 Million
RumbleON Inc (NASDAQ:RMBL) reports Q3 2023 financial results with a net loss of $16.5 million.
Total company revenue stands at $338.1 million, down 11.7% sequentially due to normal seasonal trends.
Gross profit margin decreased by 60 bps sequentially to 27.2%.
The company paid down $47 million of term debt and reiterated its 2023 outlook.
On November 7, 2023, RumbleON Inc (NASDAQ:RMBL), the largest powersports retailer in North America, released its financial results for the third quarter of 2023. The company reported a net loss from continuing operations of $16.5 million, with a loss per share from continuing operations of $0.99. The total company revenue was $338.1 million, down 11.7% sequentially, driven by normal seasonal trends.
Financial Performance
The company's total unit sales were 17,573, comprised of 10,851 new units and 6,722 used units. This resulted in a new:used ratio of 1.6x, a slight decrease from the prior quarter. The total company gross profit was $91.9 million, and the gross profit margin of 27.2% decreased 60 bps sequentially. The adjusted net loss was $11.9 million with an adjusted diluted loss per share of $0.71. The adjusted EBITDA was $13.2 million, impacted by lower used unit sales and GPU, partially offset by the positive impact from SG&A reductions.
Management Commentary
CEO Mike Kennedy stated,
I am thrilled to join RumbleOn at such an exciting time in the transformation journey. I look forward to bringing my extensive industry experience to guide the company in its next chapter. During the quarter, the team made significant progress towards strengthening our balance sheet and cutting costs, positioning the company for future growth and success."
Financial Outlook
RumbleON Inc (NASDAQ:RMBL) is reaffirming its outlook for the full year 2023 and full year 2024. The full year 2023 outlook includes total powersports and transportation revenue of $1.38 billion to $1.48 billion, powersports GPU of approximately $5,300 to $5,400, and adjusted EBITDA of $55 million to $65 million.
Balance Sheet and Cash Flow
As of September 30, 2023, the company had approximately $59.5 million in cash and restricted cash, and total debt was $369.9 million. Total available liquidity, defined as unrestricted cash plus availability under floor plan credit facilities for inventory on hand at September 30, 2023, totaled approximately $73.6 million. Cash flow used in operating activities was $19.3 million for the nine months ended September 30, 2023.
Explore the complete 8-K earnings release (here) from RumbleON Inc for further details.
This article first appeared on GuruFocus.
