RumbleOn(RMBL) - 2024 Q4 - Annual Results

Revenue Performance - Fourth Quarter 2024 revenue was $269.6 million, a decrease of 13.4$311.2 million in Q4 2023[5] - Full Year 2024 revenue totaled $1,209.2 million, down 11.5$1,366.4 million in 2023[5] - Total retail unit sales in Q4 2024 were 14,142, a decrease of 9.3% from 15,596 in Q4 2023[9] - Total revenue for Q4 2024 was $269.6 million, a decrease of 13.4$311.2 million in Q4 2023[20] Net Loss and Profitability - Net loss for Q4 2024 was $56.4 million, significantly improved from a net loss of$168.5 million in Q4 2023, which included $39.3 million in intangible asset impairment charges[5] - The net loss for Q4 2024 was$56.4 million, compared to a net loss of $168.5 million in Q4 2023, indicating a significant improvement[20] - Adjusted EBITDA for Q4 2024 was$2.2 million, compared to a loss of $0.3 million in Q4 2023[5] - Adjusted EBITDA for the full year 2024 was$32.9 million, compared to $37.4 million in 2023, reflecting a decrease of 11.9$64.2 million in Q4 2024 from $81.7 million in Q4 2023, a reduction of 21.4$270.0 million, down from 333.1 million in 2023, representing a significant reduction in operating expenses[38] - The SG&A as a percentage of Gross Profit improved to 85.9% in 2024 from 92.6% in 2023, indicating better cost management[38] - The company reported a significant reduction in litigation and non-recurring costs, contributing to the improved Adjusted SG&A figures[38] Cash Flow and Liquidity - Operating cash inflows for 2024 were 99.4 million, a significant increase from cash outflows of $38.9 million in 2023[6] - Cash (unrestricted) at the end of 2024 was$85.3 million, up 44.8% from $58.9 million at the end of 2023[6] - Cash and restricted cash at the end of Q4 2024 totaled$96.7 million, an increase from $77.0 million at the end of Q4 2023[24] - For the full year 2024, cash flows from operating activities were$99.4 million, compared to $(38.9) million in 2023, resulting in a Free Cash Flow of$97.4 million, up from $(52.6) million in the previous year[33] Debt and Financial Position - The company fully repaid$38.8 million of 6.75% convertible senior notes upon maturity in January 2025[5] - As of December 31, 2024, Non-Vehicle Net Debt was $182.1 million, a decrease from$242.9 million as of December 31, 2023, reflecting improved financial position[35] - The principal of long-term debt, including current maturities, decreased to $267.4 million as of December 31, 2024, from$301.8 million in 2023, reflecting debt reduction efforts[35] - Total liabilities decreased to $718.5 million in 2024 from$820.7 million in 2023, showing a reduction in financial obligations[22] Inventory and Asset Management - The company reduced inventories by $106.9 million and floor plan notes payable by$81.4 million during the year[5] - Total current assets decreased to $371.4 million in 2024 from$480.8 million in 2023, primarily due to a reduction in inventory[22] - Vehicle floor plan notes payable decreased to $209.9 million in 2024 from$291.3 million in 2023, indicating improved management of financing[22] - The company incurred impairment charges of $39.3 million in both Q4 2024 and 2023, reflecting ongoing challenges in asset valuation[28] Future Outlook - The company’s financial strategy focuses on enhancing liquidity and capital resources through improved Free Cash Flow generation[32] - Future outlook includes continued focus on cost management and operational efficiency to sustain financial improvements[38] - The Consolidated Total Net Leverage Ratio as of December 31, 2024, was 5.3x, well below the maximum allowed of 9.5x, demonstrating compliance with credit agreement covenants[41] - Capital expenditures for 2024 were$2.0 million, significantly lower than $13.7 million in 2023, indicating a more conservative investment approach[33]