Core Viewpoint - RumbleOn, Inc. is set to release its Fourth Quarter and Full Year 2024 operational and financial results on March 11, 2025, before market opening [1] Company Overview - RumbleOn operates through two segments: Powersports dealership group and Wholesale Express, LLC, which focuses on asset-light transportation services in the automotive industry [3] - The Powersports group is claimed to be the largest in the United States, offering a wide range of products and services including new and pre-owned vehicles, parts, apparel, and financing options [3] - RumbleOn is one of the largest purchasers of pre-owned powersports vehicles in the U.S., utilizing proprietary technology to acquire vehicles directly from consumers [3] Upcoming Events - A conference call and webcast will be held on March 11, 2025, at 7:00 a.m. Central Time (8:00 a.m. Eastern Time) to discuss the operational and financial results [2][4] - The call will be hosted by the CEO Mike Quartieri and CFO Tiffany Kice [2]

Financial Data and Key Metrics Changes - Total revenue increased by 8.7% despite average selling prices declining by 90 basis points [18] - Interest income rose by 5.1%, driven by overall receivables growth of $31 million year-over-year and a 50 basis point increase in the portfolio's weighted average interest rate [19] - Net charge-offs as a percentage of average finance receivables improved to 6.1% from 6.8% in the prior year quarter [26] - The allowance for credit losses as a percentage of finance receivables decreased to 24.31% from 25.74% a year ago [27] - SG&A expense increased by $2.9 million, or 6.7%, primarily due to acquisitions and higher stock compensation [31] Business Line Data and Key Metrics Changes - Sales volumes were up 13.2% for the quarter, attributed to improved execution and an earlier launch of the annual tax season promotion [21] - Gross margin improved to 35.7% from 34.2%, driven by vehicle procurement and disposal initiatives [23] - Collections increased by 5.2% over last year, with the monthly average total collected per active customer rising to $568 from $540 [29] Market Data and Key Metrics Changes - Delinquencies increased by 40 basis points to 3.7% at quarter end, influenced by winter weather impacts [30] - The application volume was up over 3.5%, indicating stronger demand from consumers [79] Company Strategy and Development Direction - The company is focused on improving and diversifying its balance sheet by adding new capital and lenders, as well as enhancing its securitization program [9] - A new Vice President of Capital Markets and Treasury was hired to support the growing ABS platform and capital market strategy [13] - The company aims to provide affordable financial solutions for vehicle ownership and exceptional service to customers under financial pressure [36] Management's Comments on Operating Environment and Future Outlook - The management highlighted the challenging environment for customers due to inflation, higher used car prices, and elevated interest rates [9] - The company is optimistic about its position heading into the strong fourth quarter and spring selling season, with increased inventory and refined marketing strategies [38] - Management remains cautious about the macro environment but believes that the company's foundational improvements will lead to future growth [40] Other Important Information - The company completed an extension and upsizing of its ABL facility to $350 million, maturing in March 2027 [10] - The sixth ABS transaction was completed in January, totaling $200 million and was more than 10 times oversubscribed [11] Q&A Session Summary Question: Update on unit recovery and underwriting trends - Management indicated that underwriting has been cautiously relaxed, with current volumes expected to be down 6% to 8% compared to fiscal year '23 [46][47] Question: Impact of weather on delinquencies - Management acknowledged the difficulty in isolating weather impacts but noted that delinquencies have trended back down quickly [49] Question: Timing and ramp-up of acquisitions - The company closed on a dealership in December and two larger dealerships in June, expecting to add over 5,000 accounts in the next 18 to 24 months [52] Question: Provisioning benefits and consumer stress - Management believes most benefits are from improved underwriting practices rather than an overall improvement in consumer conditions [58][59] Question: Update on application pool and tax season - Management reported a slower start to tax season but noted stronger demand and improved application volume, indicating positive consumer behavior [74][79]

Core Insights - Ken Garff Automotive Group has implemented BorrowerCheck™ across its 70 dealerships to combat rising loan fraud, following a successful six-month pilot program that revealed significant instances of fraud missed by traditional tools [1][2][4] Group 1: Implementation and Impact - The implementation of BorrowerCheck is designed to protect dealerships from loan fraud and lender pushbacks, which have become increasingly common due to sophisticated identity theft and income misrepresentation schemes [2][4] - The solution integrates seamlessly into existing dealership workflows, requiring no operational changes while enhancing protection against various types of fraud, including identity, income, and employment misrepresentation [3][7] - The pilot program demonstrated BorrowerCheck's effectiveness in detecting fraud that traditional red flag solutions often overlook, with the potential to prevent over 90% of fraud cases that would typically go undetected [4][7] Group 2: Industry Context - The automotive lending fraud reached $8 billion last year, highlighting the urgent need for advanced fraud detection solutions in the industry [2] - The automotive retail landscape is evolving, necessitating modern approaches to fraud prevention that not only catch more fraud but also improve the overall customer experience [4][6] - Ken Garff's partnership with Point Predictive signifies a strategic move to enhance customer satisfaction while safeguarding relationships with lending partners [2][4] Group 3: Company Background - Ken Garff Automotive Group is one of the largest privately-held automotive retailer groups in the U.S., with a commitment to integrity and exceptional customer experiences since its founding in 1932 [8]

Core Viewpoint - AutoZone, Inc. is expected to report an increase in quarterly earnings and revenue in its upcoming financial results, indicating positive growth trends for the company [1]. Financial Performance - AutoZone is projected to report quarterly earnings of $28.98 per share, an increase from $28.89 per share in the same period last year [1]. - The company anticipates quarterly revenue of $3.98 billion, compared to $3.86 billion a year earlier [1]. - In the fiscal first quarter, AutoZone reported earnings per share of $32.52, which was below the expected $33.76 [2]. Stock Performance and Analyst Ratings - AutoZone shares closed at $3,493.01, reflecting a gain of 1.4% [2]. - Barclays analyst Matthew McClintock raised the price target for AutoZone from $3,024 to $3,585, maintaining an Overweight rating [3]. - Argus Research analyst Bill Selesky increased the price target from $3,560 to $3,678 while maintaining a Buy rating [3]. - TD Cowen analyst Max Rakhlenko raised the price target from $3,450 to $3,800, also maintaining a Buy rating [3]. - BMO Capital analyst Tristan Thomas-Martin initiated coverage with an Outperform rating and a price target of $3,700 [3]. - Wells Fargo analyst Zachary Fadem increased the price target from $3,450 to $3,750 while maintaining an Overweight rating [3].

Financial Performance - Full year 2024 revenue grew by 4% year-over-year, reaching $719.2 million compared to $689.2 million in 2023[12, 67] - Adjusted EBITDA margin increased by approximately 90 basis points year-over-year, from 28.3% in FY23 to 29.2% in FY24[12, 66] - Free cash flow for FY24 was $128 million, representing an approximate 11% free cash flow yield[12] - Adjusted EBITDA grew by approximately $15 million, an increase of 8% year-over-year, totaling $209.7 million in FY24 compared to $194.9 million in FY23[66, 67] Key Growth Drivers - OEM and National revenue increased by 15% year-over-year in Q4, achieving over $17 million, marking the best quarterly revenue since Q1 2021[15, 35, 36] - AccuTrade achieved a record customer base, exiting 2024 with approximately 1,000 subscribers[15, 21] - Approximately 30% of new Q4 franchise subscriptions were affiliated with OEMs that have AccuTrade endorsements[24] Platform Engagement - Total traffic in Q4 reached 143.8 million visits[27] - Dealer Inspire websites experienced approximately 40% more engagement for customers who also subscribe to the Carscom marketplace[34]

Financial Data and Key Metrics Changes - Comparable store sales percentage change improved by 500 basis points sequentially from Q2 of fiscal 2025, with sales of $305.8 million, a decrease of 3.7% year over year, primarily driven by a 1.9% decline in comparable store sales unadjusted for days [13][15] - Gross margin decreased by 120 basis points compared to the prior year, primarily due to higher material costs and increased self-funded promotions [15][16] - Operating income for Q3 declined to $10 million or 3.3% of sales, compared to $21.4 million or 6.7% of sales in the prior year [16] - Net income was $4.6 million, down from $12.2 million in the same period last year, with diluted earnings per share at $0.15 compared to $0.38 [17] Business Line Data and Key Metrics Changes - Tire units were up low single digits in Q3, driven by mid single-digit growth in units during December [14] - Year-over-year growth in service categories, including batteries, alignment, and front-end shocks, was noted, while brake category performance still requires improvement [9][12] Market Data and Key Metrics Changes - Preliminary fiscal January comparable store sales were down 1%, driven by weakness in tire category sales due to extreme weather, which resulted in temporary store closures [10][11] - The company gained higher market share in higher margin tiers during the quarter [14] Company Strategy and Development Direction - The company remains focused on sales and unit growth while making necessary price and promotional investments, even if it pressures profitability in the near term [10][12] - Initiatives such as the Comfort Drive digital courtesy inspection process and oil change offers are expected to drive improvements in store traffic and service category performance [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in restoring gross margins back to pre-COVID levels with double-digit operating margins over the long term as top-line growth resumes [12][21] - The company anticipates leveraging initiatives to achieve Q4 objectives, including improving store traffic trends and accelerating performance in key service categories [11][20] Other Important Information - The company generated $103 million of cash from operations, with a net bank debt of $49 million and total liquidity of $521 million [18][19] - Capital expenditures are expected to be between $25 million to $30 million for fiscal 2025 [20] Q&A Session Summary Question: Will gross profit comps continue to improve or will there be a mix deterioration? - Management indicated that gross margin declined 120 basis points due to material costs and self-funded promotions, and similar pressure is expected going forward [24] Question: Was weather a net benefit or drag in Q3? - Management stated that Q3 was neutral regarding weather impact, but extreme weather in January is expected to benefit future performance [25][26] Question: What benefits are seen from the digital courtesy inspection? - Management noted that while traffic was down, average ticket size increased, driven by service categories, indicating strong attachment rates [32][34] Question: What is the current mix of Tier 3 tires? - The mix is in the high 20s, with a focus on steering customers towards Tier 3 rather than Tier 4 [44][47] Question: What is the status of ATD receivables? - The company still has $6.8 million of receivables owed from ATD, with no reserves against that amount, expecting full collection [56] Question: How did regional performance vary? - The South performed stronger than the consolidated comp, while the Midwest, Northeast, and West were weaker [57] Question: What are the building blocks to restore gross margins to pre-COVID levels? - Management highlighted the need for reduced material cost pressures and top-line growth to achieve margin restoration [71]