Q1 2024 RumbleOn Inc Earnings Call Transcript
Key Points
- Pre-owned gross margins improved significantly to 17.5% from 11% in the previous year, demonstrating effective cost management and strategic inventory acquisition.
- Total company EBITDA increased from $4 million last year to $9 million this year in the first quarter, reflecting strong cost control measures.
- SG&A expenses were reduced by 14.3% compared to the same quarter last year, aligning with the company's expectations and contributing to overall profitability.
- The company is on track to open its first pre-owned center by July, which is expected to enhance its market presence and capitalize on its cash offer technology.
- RumbleOn Inc maintained a stable EBITDA of $17.7 million for the powersports dealership group despite an 8.2% decrease in revenue, indicating efficient operational management.
- Total revenue from the powersports dealership group decreased by 8.2% compared to the same quarter last year, primarily due to lower pre-owned volume and a decrease in average selling price.
- New unit sales saw a decline in gross margins from 15.2% to 12.4% year-over-year, affected by overstocking issues and strategic exits from non-core product lines.
- The parts, service, and accessories segment experienced a revenue decline of 9.5%, mainly due to reduced sales in accessories and motor clothes.
- Pre-owned unit sales decreased by 13.4%, reflecting challenges in inventory levels and market dynamics.
- Despite efforts to reduce inventory by $60 million, the company faced challenges with heavy inventory levels from prior periods, impacting the overall financial performance.
Greetings and welcome to the RumbleOn Inc. First Quarter 2024 earnings conference call. At this time, all participants are in a listen only mode and a brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded and is now my pleasure to introduce your host, Tom Zelewski, Vice President, Finance and Treasurer. Thank you, and please go ahead.
Thank you, operator. Good morning, everyone, and thank you for joining us on this conference call to discuss RumbleOn's First Quarter 2024 financial results. Joining me on the call today are Mike Kennedy, RumbleOn's Chief Executive Officer and Blake Lawson, Chief Financial Officer. Our Q1 results are detailed in the press release we issued earlier this morning and federal mineral information will be available in our first quarter Form 10-Q when filed.
Before we start, I'd like to remind you that the following discussion contains forward-looking statements including, but not limited to from
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