RumbleON (RMBL) Q3 Earnings call transcript Nov 12, 2024

In a recent earnings call, RumbleOn, Inc. provided a comprehensive update on its third-quarter performance, highlighting key operational improvements and strategic moves to navigate industry challenges and strengthen its financial position. As a leading player in the Powersports market, RumbleOn showcased its resilience and strategic acumen, setting the stage for long-term growth.

A Focus on Operational Excellence and Strategic Moves

RumbleOn's CEO, Mike Kennedy, emphasized the company's commitment to operational excellence and strategic moves, such as refinancing efforts and M&A strategies. The company announced that it has secured a commitment for $30 million in incremental capital from its three largest shareholders, including a $10 million fully backstopped equity rights offering. This capital infusion is expected to enable full repayment of convertible notes and position the company for successful refinancing.

Furthermore, RumbleOn's acquisition of Harley-Davidson Viewership in West Bridgewater, Massachusetts, demonstrates its strategic expansion and commitment to growth. The company's M&A strategy, coupled with its operational focus, underscores its strategic intent and potential for long-term growth.

Operational Improvements and Cost Optimization

Operationally, RumbleOn has made significant strides in optimizing inventory levels and cost structures. The company has reduced total inventories by 53.8%, showcasing its ability to navigate inventory challenges and optimize its operations. This, coupled with a $30 million annualized cost savings achievement, underscores the company's focus on efficiency and cost optimization.

Financial Performance and Outlook

The third quarter saw revenue of $295 million and adjusted EBITDA of $6.8 million, marking a 12.7% and 26.1% decline, respectively, year-over-year. Despite the challenges, RumbleOn's management remains optimistic about the future, emphasizing a focus on achieving Vision 2026 targets and maintaining a disciplined approach to capital deployment.

Conclusion

RumbleOn's third-quarter earnings call showcased a company that is not only navigating current challenges but also leveraging strategic moves and operational improvements to set the stage for long-term growth. The company's focus on operational excellence, strategic M&A, and cost optimization positions it well for future success. As RumbleOn continues to execute its Vision 2026 strategy, investors and stakeholders can look forward to a company that is committed to maximizing long-term value and driving growth in the Powersports market.