# EDGAR Filing Document

**Accession Number:** 0001596961
**File Stem:** 0001596961-23-000005
**Filing Date:** 2023-3
**Character Count:** 40879
**Document Hash:** b8dbce80d2ba5d4ce0a4a693e8edf5f3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001596961-23-000005.hdr.sgml**: 20230316

**ACCESSION NUMBER**: 0001596961-23-000005

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230316

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230316

**DATE AS OF CHANGE**: 20230316

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** RumbleOn, Inc.
- **CENTRAL INDEX KEY:** 0001596961
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING SERVICES [7371]
- **IRS NUMBER:** 463951329
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38248
- **FILM NUMBER:** 23737243

**BUSINESS ADDRESS:**
- **STREET 1:** 901 W. WALNUT HILL LANE
- **CITY:** IRVING
- **STATE:** TX
- **ZIP:** 75038
- **BUSINESS PHONE:** 214-771-9952

**MAIL ADDRESS:**
- **STREET 1:** 901 W. WALNUT HILL LANE
- **CITY:** IRVING
- **STATE:** TX
- **ZIP:** 75038

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** RumbleON, Inc.
- **DATE OF NAME CHANGE:** 20170213

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Smart Server, Inc
- **DATE OF NAME CHANGE:** 20140114

?xml version="1.0" ? rmbl-20230316

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):March 16, 2023

![rmbl-20230316_g1.jpg](rmbl-20230316_g1.jpg)

**RumbleOn, Inc.**

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Nevada**<br>**(State or Other Jurisdiction** <br>**of Incorporation)** | **001-38248**<br>**(Commission File Number)** | **46-3951329**<br>**(I.R.S. Employer Identification No.)** |
| **901 W Walnut Hill Lane**<br>**Irving,Texas** <br>**(Address of Principal Executive Offices)** | | **75038**<br>**(Zip Code)** |

---

Registrant's telephone number, including area code **(214) 771-9952**

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

---

| |
|:---|
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)) |

---

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Class B Common Stock, $0.001 par value | RMBL | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

------

**Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On March 16, 2023, RumbleOn, Inc. (the "Company") issued a press release reporting its results for the fourth quarter and year ended December 31, 2022. A copy of the press release is furnished as Exhibit 99.1 to this report.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits**.

(d)Exhibits

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| <u>[99.1](rmbl-991earningrelease1231.htm)</u> | Press Release, dated March 16, 2023. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **RUMBLEON, INC.** | **RUMBLEON, INC.** |
| Date: March 16, 2023 | By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Marshall Chesrown |
|  |  | Marshall Chesrown<br>Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**RumbleOn Reports Fourth Quarter and Full Year 2022 Financial Results**

*Announces Record Full Year and Q4 Powersports Unit Sales*

*Executes on $15 Million+ of SG&A Cost Reductions*

*Creating strategic partnership with Camping World (NYSE: CWH)*

*Provides 2023 Outlook*

IRVING, Texas – March 16, 2023 – RumbleOn, Inc. (NASDAQ: RMBL) (the "Company" or "RumbleOn"), the nation's first technology-based powersports platform, today announced operational and financial results for the three months and full year ended December 31, 2022. RumbleOn management is hosting an investor call to discuss the Company's results today, March 16, 2023, at 7:30 am CT (8:30 am ET).

**Full-Year 2022 Financial and Operational Highlights**

• **Total Unit Sales** of 81,037 across Powersports and Automotive Segments.

• **Total Powersports Unit Sales** of 73,413 with Used Powersports Units of 31,764.

• **Powersports Segment Revenue** of $1.4 billion, including the elimination of $71.0 million<sup>1</sup>, representing 78% of Total Company Revenue of $1.8 billion.

• **Powersports Segment Gross Profit** of $429.9 million, comprising over 95% of Total Company Gross Profit.

• **Net Loss** of $(261.5) million with Diluted Loss per Share of $(16.48). Full-year GAAP EPS reflects a $350.3 million non-cash impairment charge. Excluding the effects of the non-cash impairment charge and other non-recurring items, but including stock-based compensation expense, **Adjusted Net Income** of $37.3 million with Adjusted Diluted Earnings per Share of $2.35.

• **Adjusted EBITDA** of $120.1 million, driven by Powersports gross margin compression and reduced gross profit contribution from the automotive segment.

**Fourth Quarter 2022 Financial and Operational Highlights**

• **Total Unit Sales** of 18,419 across Powersports and Automotive Segments, impacted by the exiting of the Automotive Segment.

• **Total Powersports Unit Sales** of 17,550 with Used Powersports Units of 6,917, resulting in New:Used ratio of 1.54x, which increased slightly from the prior quarter.

• **Powersports Segment Revenue** of $320.5 million, including the elimination of $18.6 million<sup>1</sup>. Powersports segment revenue was 87% of Total Company Revenue of $369.5 million,

• **Powersports Segment Gross Profit** of $89.7 million comprising over 96% of Total Company Gross Profit of $93.1 million; Total Company Gross Profit Margin of 25.2% declined 60 bps sequentially.

• **Net Loss** of $(287.7) million with Diluted Loss per Share of $(17.80). Fourth quarter GAAP EPS reflects a $350.3 million pre-tax non-cash impairment charge. Excluding the effects of the non-cash impairment charge and other non-recurring items, but including stock-based compensation expense, **Adjusted Net Loss** of $(11.0) million with Adjusted Diluted Loss per Share of $(0.68).

• **Adjusted EBITDA** of $18.7 million, impacted by lower gross profit contribution from the Automotive segment combined with modest gross margin compression in the Powersports segment.

*•* **Significant Financial Flexibility** with cash, including restricted cash, of $58.6 million and total available liquidity of $196.1 million as of December 31, 2022, inclusive of availability under Powersports inventory financing credit facility of $75.0 million, announced on October 26, 2022.

<sup>1</sup> During the year-end process, we identified and corrected a gross up of internal revenue and internal cost of sales for powersports, that has no net impact to gross profit, gross profit per unit, operating income (loss), net income (loss), or Adjusted EBITDA. The 2022 quarterly impact (in thousands) consists of a dollar-for-dollar reduction to both revenue and cost of revenue for each respective three month period and year then ended: $14,719 (Q1), $18,094 (Q2), $19,615 (Q3), $18,569 (Q4), and $70,997 (2022 total).

<sup>1</sup>

------

• **Signed an engagement letter with JP Morgan** to review our balance sheet initiatives and options for 2023.

• **Completed 3 "Tuck-In" acquisitions**, 2 Polaris and 1 Honda franchise, in Texas. These acquisitions were funded from operating cash for a total purchase price of $4.8 million.

• **Paid down $15 million** of long-term debt.

**Management Commentary**

Marshall Chesrown, RumbleOn's Chairman and Chief Executive Officer commented, "Our fourth quarter results reflect forward-looking actions taken to better position the business for 2023 and beyond. We are aggressively addressing macroeconomic uncertainties, as we operate in an environment of normalized inventory levels and associated margin pressures. We are building a solid foundation for long-term profitable growth, all while making prudent, timely and disciplined investments in technology and customer experience improvements online and in our stores. Further, the fulfillment process being rolled out will enable our operations and teams to become more agile to meet customer demand through diligent on time inventory management and customer selection and service."

"With an ongoing focus on maintaining financial health and a strong balance sheet, we remain committed to a completely self-funded business model for growth. In the fourth quarter, we pre-paid $15M in principal and recently signed an engagement letter with JP Morgan to review our balance sheet initiatives and options for 2023. As we look to 2023 and beyond, we are continuing to implement our five pillar strategy to achieve our near and long term financial targets, driving sustainable shareholder value," concluded Chesrown.

------

**Fourth Quarter 2022 — Summary Financial Results**

*Reconciliation of GAAP to non-GAAP financial measures are provided in accompanying financial schedules.*

Unless otherwise noted, all comparisons in the narrative are on a sequential basis for the three months ended December 31, 2022, as compared to the three months ended September 30, 2022.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| *$ in millions except per share amounts* | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Change** | **Change** |
|  | **Dec 31, 2022** | **Sep 30, 2022** | **Dec 31, 2021** | **Sequential** | **Year-over-Year** |
| **Total Unit Sales (#)** | 18419 | 19908 | 17037 | (7.5)% | 8.1% |
| **Total Revenue**<sup>1</sup> | $369.5 | $450.7 | $430.3 | (18.0)% | (14.1)% |
| **Gross Profit** | $93.1 | $116.3 | $90.1 | (20.0)% | 3.3% |
| **Gross Profit Margin** | 25.2% | 25.8% | 20.9% | (60) bps | 430 bps |
| **Net Income (Loss)** | $(287.7) | $3.0 | $20.7 | nm | nm |
| **Diluted Earnings (Loss) per Share** | $(17.80) | $0.19 | $1.35 | nm | nm |
| **Adjusted EBITDA** | $18.7 | $25.7 | $24.3 | (27.3)% | (23.0)% |
| **Adjusted Net Income (Loss)** | $(11.0) | $4.4 | $9.0 | (350.0)% | (222)% |
| **Adjusted Diluted Earnings (Loss) per Share** | $(0.68) | $0.27 | $0.60 | (351.9)% | (213)% |

---

*nm = not meaningful*

**Total Unit Sales** of 18,419 declined (7.5)%, driven by the Company's strategic decision to purchase fewer automotive units during the quarter, combined with the anticipated seasonal impact experienced in Powersports. The Powersports Segment made up approximately 95.3% of total unit sales in the fourth quarter with the Automotive segment comprising the remaining approximately 4.7%.

**Total Revenue** of $369.5<sup>1</sup> million declined (18.0)%. The Powersports Segment revenue made up approximately 86.8% of total revenue in the fourth quarter, the Automotive Segment made up approximately 10.2%, and the Vehicle Logistics Segment made up approximately 3.0%.

**Total Gross Profit** of $93.1 million declined (20.0)%. The Powersports Segment contributed approximately 96.4% of total gross profit in the fourth quarter, and the Vehicle Logistics and Automotive Segments made up approximately 2.9% and 0.7%, respectively.

**Operating Expenses** were $98.1 million, or 26.6% of revenue, compared to $102.8 million, or 21.9% of revenue. Total stock-based compensation was $2.1 million down from $2.6 million in the prior quarter.

**Net Loss** was $(287.7) million, reflecting a $350.3 million pre-tax non-cash impairment charge. Earnings (loss) per diluted share was $(17.80) compared to $0.19.

**Adjusted Net Income (Loss)** was $(11.0) million, or 3% of revenue, compared to $4.4 million or 1% of revenue. Adjusted earnings per diluted share was $(0.68) compared to $0.27.

**Adjusted EBITDA** was $18.7 million compared to $25.7 million. The (27.3)% sequential decrease in adjusted EBITDA was primarily driven by modest gross margin compression in the Powersports Segment and lower gross profit contribution from the Automotive Segment.

------

**Cash** as of December 31, 2022, including restricted cash, was approximately $58.6 million, and total debt was $635.2 million. Availability under our short-term revolving credit facilities totaled approximately $137.5 million. **Total Available Liquidity**, defined as cash and cash equivalents, including restricted cash, plus availability under our short-term revolving credit facilities totaled approximately $196.1 million.

**Cash Flow used in Operating Activities** was $(18.9) million for the year ended December 31, 2022, which was negatively impacted by $45.1 million of cash used for inventory purchases not financed by trade floorplan credit facilities.

**Weighted Average Basic and Diluted Shares** of Class B common stock outstanding were 15,871,005 for the year ended December 31, 2022. As of December 31, 2022, RumbleOn had 16,184,264 total shares of Class B common stock and 50,000 shares of Class A common stock outstanding.

**Full Year 2023 — Financial Outlook**

RumbleOn is providing its outlook for the full year 2023 as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Total Powersports and Transportation Revenue** of $1.4 billion to $1.6 billion, compared to Powersports and Transportation Revenue of $1.46 billion in 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Powersports GPU** of approximately $5,700 compared to $6,159 in 2022<sup>2</sup>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Adjusted EBITDA** of $95 million to $105 million.

Our financial guidance includes the following assumptions: <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Combined Powersports new and used retail unit growth of approximately 5%.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We expect continued gross margin pressure in the first half as new unit supply imbalances normalize. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The $15 million SG&A reductions will begin to benefit our business in early 2023.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• This does not include any growth from acquisitions or tuck-ins, nor does it have a built-in overlay from fulfillment or technological opportunities that we create over the course of 2023.

<sup>2</sup> Calculated as total powersports gross profit divided by new and used retail powersports units sold.

------

**Fourth Quarter 2022 — Segment Results**

Unless otherwise noted, all comparisons are on a sequential basis for the three months ended December 31, 2022, as compared to the three months ended September 30, 2022.

**<u>Powersports Segment</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| *$ in millions except per unit* | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Change** | **Change** |
|  | **Dec 31, 2022** | **Sep 30, 2022** | **Dec 31, 2021** | **Sequential** | **Year-over-Year** |
| **Unit Sales (#)** |  |  |  |  |  |
| New | 10633 | 9973 | 8070 | 6.6% | 32% |
| Used | 6917 | 8420 | 5408 | (17.9)% | 28% |
| **Total Powersports Unit Sales** | 17550 | 18393 | 13478 | (4.6)% | 30% |
| **Revenue** |  | ` |  |  |  |
| New | $149.8 | $165.4 | $126.7 | (9.4)% | 18% |
| Used | $77.8 | $106.5 | $74.5 | (26.9)% | 4% |
| Finance & Insurance, net | $27.6 | $31.6 | $23.0 | (12.7)% | 20% |
| Parts, Services, and Accessories | $65.3 | $62.2 | $50.9 | 5.0% | 28% |
| **Total Powersports Revenue** | $320.5 | $365.7 | $275.1 | (12.4)% | 17% |
| **Gross Profit** |  |  |  |  |  |
| New | $25.3 | $32.1 | $25.1 | (21.2)% | 1% |
| Used | $10.4 | $18.2 | $8.4 | (42.9)% | 24% |
| Finance & Insurance, net | $27.6 | $31.6 | $23.0 | (12.7)% | 20% |
| Parts, Services, and Accessories | $26.4 | $29.1 | $23.0 | (9.3)% | 15% |
| **Total Powersports Gross Profit** | $89.7 | $111.0 | $79.5 | (19)% | 13% |
| **Powersports GPU**<sup>3</sup> | $5420 | $6348 | $6445 | (14.6)% | (16)% |

---

**Used Powersports Units,** which includes used retail and wholesale Powersports Units, declined (17.9)% sequentially. Sequential declines are primarily the result of our decision to slow down used vehicle acquisition while new inventory normalized.

**Used Powersports Revenue** declined (26.9)% sequentially due to anticipated seasonality. **Used Powersports Gross Profit** declined (42.9)% sequentially, due primarily to lower unit sales and anticipated seasonality.

**New Powersports Revenue** declined (9.4)% sequentially, despite a 6.6% increase in unit sales, driven by increased supply of new inventory and unfavorable price mix in consumer demand. **New Powersports Gross Profit** declined (21.2)% sequentially, due primarily to higher inventory acquisition costs.

**Powersports GPU** was $5,420, as compared to $6,348 in the prior quarter.<sup>3</sup>

<sup>3</sup> Calculated as total powersports gross profit divided by new and used retail powersports units sold.

------

**<u>Automotive Segment</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| *$ in millions* | **Three-Months Ended** | **Three-Months Ended** | **Three-Months Ended** | **Change** | **Change** |
|  | **Dec 31, 2022** | **Sep 30, 2022** | **Dec 31, 2021** | **Sequential** | **Year-over-Year** |
| **Automotive Unit Sales (#)** | 869 | 1515 | 3559 | (42.6)% | (75.6)% |
| **Automotive Revenue** | $37.8 | $70.0 | $144.2 | (46.0)% | (73.8)% |
| **Automotive Gross Profit** | $0.7 | $1.9 | $7.8 | (63.2)% | (91.0)% |

---

**Revenue** from the Automotive Segment declined (46.0%) sequentially, primarily driven by the Company's strategic decision to purchase fewer automotive units during the quarter and wind down its automotive business.

**Gross Profit** was down due to a decrease in unit sales and gross profit per unit sold, driven by less favorable macroeconomic conditions and the Company's decision to focus on its powersports segment.

**<u>Vehicle Logistics Segment</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| *$ in millions* | **Three-Months Ended** | **Three-Months Ended** | **Three-Months Ended** | **Change** | **Change** |
|  | **Dec 31, 2022** | **Sep 30, 2022** | **Dec 31, 2021** | **Sequential** | **Year-over-Year** |
| **Vehicles Transported (#)** | 18390 | 23992 | 21847 | (23.3)% | (15.8)% |
| **Vehicle Logistics Revenue** | $11.5 | $15.5 | $12.7 | (25.8)% | (9.4)% |
| **Vehicle Logistics Gross Profit** | $2.9 | $3.6 | $2.8 | (19.4)% | 3.6% |

---

**Revenue** from the Vehicle Logistics Segment was down (25.8)% sequentially, driven by a decline in the number of vehicles transported, and a slight decline in revenue per vehicle transported from $647 in the third quarter to $628 in the fourth quarter.

**Gross profit** for this segment was down (19.4)% sequentially, driven by a decline in the number of vehicles transported, partially offset by a slight increase in gross profit per vehicle transported from $148 in the third quarter to $159 in the fourth quarter.

**Conference Call Details**

RumbleOn's management will host a conference call to discuss its operational and financial results on March 16, 2023 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). A live and archived webcast can be accessed from RumbleOn's Investor Relations website. To access the conference call telephonically, callers may dial 1-877-407-9716 (or 1-201-493-6779 for callers outside of the United States) and enter conference ID 13735860.

**About RumbleOn**

RumbleOn is the nation's first technology-based powersports platform. Headquartered in the Dallas Metroplex, RumbleOn provides the only technology-led platform in powersports with a broad footprint of physical locations, full-line manufacturer representation and high-quality used inventory to transform the entire customer experience. Our goal is to integrate the best of both the physical and digital, and make the transition between the two seamless. To learn more please visit us online at https://www.rumbleon.com/.

------

**Cautionary Note on Forward-Looking Statements**

This press release may contain "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed under the heading "Forward-Looking Statements" and "Risk Factors" in the Company's SEC filings, as may be updated and amended from time to time. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

**Use of Non-GAAP Financial Measures**

As required by the rules of the Securities and Exchange Commission ("SEC"), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this release.

Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income (loss), and Adjusted net income (loss) margin are non-GAAP financial measures and should not be considered as alternatives to operating income or net income as a measure of operating performance or cash flows or as a measure of liquidity. Non-GAAP financial measures are not necessarily calculated the same way by different companies and should not be considered a substitute for or superior to U.S. GAAP.

Adjusted EBITDA is defined as net income (loss) adjusted to add back interest expense, depreciation and amortization, changes in derivative liability, non-cash stock-based compensation costs, transaction costs, litigation expenses, and other non-recurring costs, as these recoveries, charges and expenses are not considered a part of our core business operations and are not necessarily an indicator of ongoing, future company performance.

Adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business. We present adjusted EBITDA because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe it is helpful in highlighting trends in our operating results, because it excludes, among other things, certain results of decisions that are outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure and capital investments.

Adjusted net income (loss) is defined as net income (loss) adjusted to add back transaction costs, purchase accounting adjustments and other non-recurring costs which include items not indicative of our ongoing operating performance.

With respect to our 2023 adjusted EBITDA target, a reconciliation of this non-GAAP measure to the corresponding GAAP measure is not available without unreasonable effort due to the complexity of the reconciling items that we exclude from this non-GAAP measure.

**Investor Relations Contact:**

Will Newell

investors@rumbleon.com

------

**RumbleOn, Inc.<br>Condensed Consolidated Balance Sheets**

(Unaudited)

(Dollars in thousands; except per share amounts)

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2021** |
| **ASSETS** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;Cash | $48579 | $48974 |
| &nbsp;&nbsp;Restricted cash | 10000 | 3000 |
| &nbsp;&nbsp;Accounts receivable, net | 33758 | 40166 |
| &nbsp;&nbsp;Inventory | 331721 | 201666 |
| &nbsp;&nbsp;Prepaid expense and other current assets | 7424 | 6335 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 431482 | 300141 |
| &nbsp;&nbsp;Property and equipment, net | 76078 | 21417 |
| &nbsp;&nbsp;Right-of-use assets | 161822 | 133112 |
| &nbsp;&nbsp;Goodwill | 21142 | 260922 |
| &nbsp;&nbsp;Intangible assets, net | 247413 | 302066 |
| &nbsp;&nbsp;Deferred tax assets | 58115 |  |
| &nbsp;&nbsp;Other assets | 31158 | 10091 |
| Total assets | 1027210 | 1027749 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;Accounts payable and other current liabilities | 82618 | 77317 |
| &nbsp;&nbsp;Vehicle floor plan note payable | 225431 | 97278 |
| &nbsp;&nbsp;Current portion of long-term, convertible debts, and notes payable | 3645 | 4476 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 311694 | 179071 |
| Long-term liabilities: |  |  |
| &nbsp;&nbsp;Senior secured note | 317494 | 253438 |
| &nbsp;&nbsp;Convertible debt, net | 31890 | 29242 |
| &nbsp;&nbsp;Line of credit and notes payable | 25000 | 150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 126695 | 114687 |
| &nbsp;&nbsp;Deferred tax liabilities |  | 7586 |
| &nbsp;&nbsp;Other long-term liabilities | 8422 | 11930 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total long-term liabilities | 509501 | 417033 |
| Total liabilities | 821195 | 596104 |
| Commitments and contingencies (Notes 2, 8, 9, 10, 11, 12, 14,19, 21) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;Common A stock, $0.001 par value, 50,000 shares authorized, 50,000 shares issued and outstanding as of December 31, 2022 and December 31, 2021 | 0 | 0 |
| &nbsp;&nbsp;Class B stock, $0.001 par value, 100,000,000 shares authorized, 16,184,264 and 14,882,022 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively | 16 | 15 |
| &nbsp;&nbsp;Additional paid-in capital | 585937 | 550055 |
| &nbsp;&nbsp;Accumulated deficit | (375619) | (114106) |
| &nbsp;&nbsp;Class B stock in treasury, at cost,123,089 shares as of December 31, 2022 and December 31, 2021 | (4319) | (4319) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 206015 | 431645 |
| Total liabilities and stockholders' equity | $1027210 | $1027749 |

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**RumbleOn, Inc.<br>Condensed Consolidated Statements of Operations**

(Unaudited)

(Dollars in thousands, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;Vehicles sales |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Powersports | $227537 | $201996 | $1033919 | $323303 |
| &nbsp;&nbsp;&nbsp;&nbsp;Automotive | 37840 | 144233 | 334273 | 460888 |
| &nbsp;&nbsp;Parts, service and accessories | 65294 | 59971 | 247562 | 66969 |
| &nbsp;&nbsp;Finance and insurance, net | 27671 | (3655) | 123576 | 29133 |
| &nbsp;&nbsp;Vehicle logistics | 11168 | 27803 | 54038 | 43878 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 369510 | 430348 | 1793368 | 924171 |
| Cost of revenue: |  |  |  |  |
| &nbsp;&nbsp;Powersports | 191877 | 167679 | 839768 | 264872 |
| &nbsp;&nbsp;Automotive | 37181 | 136391 | 323423 | 430142 |
| &nbsp;&nbsp;Parts, service and accessories | 38884 | 27857 | 135358 | 36702 |
| &nbsp;&nbsp;Vehicle logistics | 8428 | 8320 | 42160 | 34278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 276370 | 340247 | 1340709 | 765994 |
| Gross profit | 93140 | 90101 | 452659 | 158177 |
| Selling, general and administrative | 91972 | 71056 | 366387 | 164077 |
| Impairment of goodwill and franchise rights | 350315 |  | 350315 |  |
| Insurance recovery |  |  |  | (3135) |
| Depreciation and amortization | 6156 | 3155 | 23079 | 6103 |
| Operating income (loss) | (355303) | 15890 | (287122) | (8868) |
| Interest expense | (16809) | (8299) | (53868) | (16405) |
| Other income | 4043 |  | 4331 |  |
| Change in derivative liability |  | (25) | 39 | (8799) |
| PPP loan forgiveness |  | 2110 | 2509 | 2682 |
| Income (loss) before provision for income taxes | (368069) | 9676 | (334111) | (31390) |
| Income tax benefit | (80344) | (10984) | (72598) | (21665) |
| Net income (loss) | $(287725) | $20660 | $(261513) | $(9725) |
| Weighted average number of common shares outstanding - basic | 16161483 | 15055084 | 15871005 | 6920318 |
| Earnings (loss) per share - basic | $(17.80) | $1.37 | $(16.48) | $(1.41) |
| Weighted average number of common shares outstanding - diluted | 16161483 | 15263736 | 15871005 | 6920318 |
| Earnings (loss) per share - diluted | $(17.80) | $1.35 | $(16.48) | $(1.41) |

---

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**RumbleOn, Inc.<br>Condensed Consolidated Statements of Cash Flows**

For the Two Years Ended December 31, 2022

(Unaudited)

(Dollars in thousands)

---

| | | |
|:---|:---|:---|
| | **2022** | **2021** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Net loss | $(261513) | $(9725) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 23079 | 6103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount | 6383 | 4386 |
| &nbsp;&nbsp; Forgiveness of PPP loan | (2509) | (2682) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation expense | 9372 | 29219 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on goodwill and franchise rights | 350315 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss from change in value of derivatives | (39) | 8799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes | (76637) | (22545) |
| &nbsp;&nbsp; Principal payments received on finance receivables |  |  |
| &nbsp;&nbsp; Originations of loan receivables, net of principal payments received | (27934) |  |
| Changes in operating assets and liabilities, net of acquisitions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 5913 | (9756) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (102323) | (53226) |
| &nbsp;&nbsp; Prepaid expenses and other current assets | (248) | (1102) |
| &nbsp;&nbsp; Other assets | 284 | (4528) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 1606 | 4748 |
| &nbsp;&nbsp; Accounts payable and accrued liabilities | (4904) | 3013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Floor plan trade note borrowings | 60268 | 15119 |
| Net cash used in operating activities | (18887) | (32177) |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisitions, net of cash received | (69584) | (371314) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (5617) | (5646) |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology development | (7003) | (1871) |
| Net cash used in investing activities | (82204) | (378831) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from new secured debt | 84500 | 261451 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of debt and mortgage notes | (49235) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of (proceeds from) issuance of notes | (2117) | (10413) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in borrowings from non-trade floor plans | 49548 | 17187 |
| &nbsp;&nbsp;&nbsp;Proceeds from RumbleOn Finance ("ROF") credit facility for the purchase of consumer finance loans | 25000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from sale of common stock |  | 191241 |
| Net cash provided by financing activities | 107696 | 459466 |
| **NET CHANGE IN CASH** | 6605 | 48458 |
| Cash and restricted cash at beginning of period | 51974 | 3516 |
| Cash and restricted cash at end of period | $58579 | $51974 |

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**RumbleOn, Inc.**

**Reconciliation of Net Income (Loss) to Adjusted EBITDA** 

(Unaudited)

(Dollars in thousands)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec 31,**<br>**2022** | **Sept 30,**<br>**2022** | **Dec 31,**<br>**2021** | **Dec 31,**<br>**2022** | **Dec 31,**<br>**2021** |
| **Net income (loss)** | $(287726) | $3039 | $20660 | $(261513) | $(9725) |
| **Add back:** |  |  |  |  |  |
| Interest expense  | 16810 | 12603 | 8298 | 53869 | 16405 |
| Depreciation and amortization | 6156 | 6570 | 3155 | 23079 | 6103 |
| Interest income and miscellaneous income | 287 | (38) |  |  |  |
| Income tax provision (benefit) | (80344) | 496 | (10984) | (72598) | (21665) |
| **EBITDA** | (344817) | 22670 | 21129 | (257163) | (8882) |
| **Adjustments:** |  |  |  |  |  |
| Stock based compensation  | 2135 | 2605 | 2762 | 9372 | 29219 |
| Transaction costs - RideNow and Freedom | 451 | 100 | 766 | 1954 | 4281 |
| Purchase accounting related | (592) | 177 | 1388 | 177 | 1388 |
| Lease expense associated with favorable related party leases in excess of contractual lease payments | 1340 |  |  | 1340 |  |
| Impairment of goodwill and franchise rights | 350315 |  |  | 350315 |  |
| Litigation settlement expenses | 8381 |  | (170) | 8381 |  |
| PPP Loan forgiveness |  | (2509) | (2110) | (2509) | (2682) |
| Insurance proceeds |  |  |  |  | (3135) |
| Costs attributable to abandoned fulfillment center project | 2141 |  |  | 2141 |  |
| Other non-recurring costs | 3224 | 2393 | 544 | 9792 | 2025 |
| Gain on sale of dealership | (3898) |  |  | (3898) |  |
| Costs attributable to store openings and closures |  | 233 |  | 233 |  |
| Change in derivative and warrant liabilities |  |  | 25 | (39) | 8799 |
| **Adjusted EBITDA** | $18680 | $25669 | $24334 | $120096 | $31013 |

---

For the year ended December 31, 2022 and 2021 and the three months ended September 30, 2022, December 31, 2022 and 2021 adjustments to Adjusted EBITDA are primarily comprised of:

• Non-cash stock-based compensation expense as reported in the Consolidated Statement of Operations,

• Transaction costs associated with the RideNow Transaction and Freedom Transactions, which primarily include professional fees and third-party costs,

• Purchase accounting adjustments, which represent one-time expenses related to the Freedom Transaction and RideNow Transaction,

• Forgiveness of the PPP loan,

• Lease expense associated with favorable related party leases in excess of contractual lease payments,

• Charges for the settlement of disputes and claims with former minority shareholders of RideNow,

------

• Expenses attributable to a discontinued project in Fort Worth, Texas,

• Charges for impairment of goodwill and franchise rights,

• Gain on the sale of a dealership, and

• Other non-recurring costs, which include one-time expenses incurred. For the three and twelve months ended December 31, 2022, the balance was primarily comprised of integration costs and professional fees associated with the RideNow and Freedom Transactions, technology implementation, legal matters, establishment of the RumbleOn Finance secured loan facility, and a death benefit to the estate of the Company's former Chief Financial Officer and director. For the three and twelve months ended December 31, 2021, the balance was primarily related to litigation expenses and a death benefit to the estate of the Company's former Chief Financial Officer and director.

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**RumbleOn, Inc.**

**Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and**

**Earnings (Loss) per share to Adjusted Earnings (Loss) per share**

(Unaudited)

(Dollars in thousands, except per share amounts)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **Dec 31,**<br>**2022** | **Sept 30,**<br>**2022** | **Dec 31,**<br>**2021** | **Dec 31,**<br>**2022** | **Dec 31,**<br>**2021** |
| **Net income (loss)** | $(287726) | $3039 | $20660 | $(261513) | $(9725) |
| **Adjustments:** |  |  |  |  |  |
| Stock based compensation  |  |  |  |  |  |
| Transaction costs - RideNow and Freedom | 451 | 100 | 766 | 1954 | 4281 |
| Impairment of goodwill and franchise rights | 350315 |  |  | 350315 |  |
| Litigation settlement expenses | 8381 |  | (170) | 8381 |  |
| PPP Loan forgiveness |  | (2509) | (2110) | (2509) | (2682) |
| Purchase accounting related | 5404 | 2456 | 1388 | 13449 | 1388 |
| Lease expense associated with favorable related party leases in excess of contractual lease payments |  |  |  | 1340 |  |
| Costs attributable to store openings and closures |  |  |  | 233 |  |
| Cost attributable to fulfillment center | 2141 |  |  | 2141 |  |
| Gain on Sale of dealership | (3898) |  |  | (3898) |  |
| Change in derivative liability |  |  | 25 | (39) | 8799 |
| Insurance proceeds |  |  |  |  | (3135) |
| Other non-recurring costs | 3972 | 2625 | 544 | 9792 | 2025 |
| Less: Income tax expense | (90052) | (1311) | (12065) | (82315) | (26273) |
| **Adjusted Net Income (Loss)** | $(11012) | $4400 | $9038 | $37331 | $(25322) |
| Weighted average number of common shares outstanding - basic | 16161483 | 16020296 | 15055084 | 15871005 | 6920318 |
| Earnings (Loss) per share - basic | $(17.80) | $0.19 | $1.37 | $(16.48) | $(1.41) |
| Adjusted Earnings (Loss) per share - basic | $(0.68) | $0.27 | $0.60 | $2.35 | $(3.66) |
| Weighted average number of common shares outstanding - diluted | 16161483 | 16067395 | 15263736 | 15871005 | 6920318 |
| Earnings (Loss) per share - diluted | $(17.80) | $0.19 | $1.35 | $(16.48) | $(1.41) |
| Adjusted Earnings (Loss) per share - diluted | $(0.68) | $0.27 | $0.59 | $2.35 | $(3.66) |

---

For the three and twelve months ended December 31, 2022 and 2021 and the three months ended September 30, 2022, adjustments to Net Income (Loss) are primarily comprised of:

• Acquisition costs associated with the RideNow transaction and Freedom transaction, which primarily include professional fees and third-party costs,

• Charges for impairment of goodwill and franchise rights,

------

• Forgiveness of the PPP loan, and

• Other non-recurring costs, which include one-time expenses incurred. For the three and twelve months ended December 31, 2022, the balance was primarily comprised of integration costs and professional fees associated with the RideNow and Freedom Transactions, technology implementation, legal matters, establishment of the RumbleOn Finance secured loan facility, and a death benefit to the estate of the Company's former Chief Financial Officer and director. For the three and twelve months ended December 31, 2021, the balance was primarily related to litigation expenses and a death benefit to the estate of the Company's former Chief Financial Officer and director.