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RumbleOn Halts Inventory Acquisition

RumbleOn has announced operating results for the year ended Dec. 31, 2019. The company also provided a business update in response to the impact of the COVID-19 pandemic. Furthermore, given the heightened uncertainty resulting from the COVID-19 pandemic, RumbleOn is withdrawing its prior 2020 financial guidance.

“Keeping our employees and their families safe is our top priority,” said RumbleOn CEO Marshall Chesrown. “The COVID-19 pandemic has created stark imbalances in both supply and demand, drastically changing consumer and business spending across many sectors. Companies across the country and around the world are working to adjust business operations and financial forecasting amid uncertainty during this unprecedented time.”

Total vehicle unit sales in 2019 was 43,143 units. Consistent with its previously communicated plan, the company held back units in Q4 in order to build inventory for the historically strong first half of the year. Total unit sales to consumers was 3,747, 8.7 percent of total units sold.

Total revenue was $840 million.

“There is no playbook for running a company during a pandemic, but we are committed to prudent management of our financial resources as we navigate this environment and are taking certain actions to protect our business,” said Chesrown. “As many OEMs have suspended production, we’ve likewise temporarily halted inventory acquisition. We have done proactive and direct outreach to our customers and partners to reassure them that we are operational and positioned to reaccelerate our business of both buying and selling pre-owned vehicles when demand returns and it is safe to resume operation.”

Sales, general and administrative expenses, including depreciation, were $86.6 million.

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