Q2 2024 RumbleOn Inc Earnings Call Transcript
Key Points
- RumbleON Inc (RMBL) delivered positive free cash flow during the first six months of 2024 and expects to continue this trend in the back half of the year.
- The company opened its first pre-owned center, Powersports of Houston, which is now fully operational and poised for growth.
- RumbleON Inc (RMBL) has implemented cost-saving measures expected to generate $15 million in savings in the back half of 2024 and $30 million annualized going forward.
- The company reported improved pre-owned gross margins of 17% for the quarter compared to 14.5% in the same quarter last year.
- RumbleON Inc (RMBL) has signed a credit agreement amendment with existing term loan lenders, providing further flexibility within its capital structure.
- Revenue was down 12% year-over-year, and adjusted EBITDA was down 19.8% year-over-year.
- Total new Powersports major unit sales were down 8.5% compared to the same quarter last year, while pre-owned unit sales were down 21.9%.
- Gross margins for new unit sales continue to be challenged, dropping to 12.2% from 15.4% in the same quarter last year.
- The company is dealing with inflated new major unit inventories and a high interest rate environment, which are impacting financial performance.
- RumbleON Inc (RMBL) had to make a reduction in force of approximately 10% as part of its cost optimization efforts.
Greetings, and welcome to RumbleOn Incorporated second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Tom Zelewski, Vice President, Finance and Treasurer. Thank you. Please go ahead.
Thank you, operator. Good morning, everyone, and thank you for joining us on this conference call to discuss RumbleOn's second quarter 2024 financial results. Joining me on the call today are Mike Kennedy, RumbleOn's Chief Executive Officer; and Tiffany Kice, RumbleOn's Chief Financial Officer.
Our Q2 results are detailed in the press release we issued earlier this morning, and a supplemental information will be available in our second quarter Form 10-Q once filed.
Before I start, I would like to remind you that the following discussion contains forward-looking statements, including, but not limited to RumbleOn's market opportunities and future financial results and involve risks
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