Vroom Completes Recapitalization
Positions the Company for Long-Term Growth
Vroom, Inc. (Nasdaq:VRM) today announced financial results for the fourth quarter and fiscal year ended December 31, 2024.
HIGHLIGHTS OF FOURTH QUARTER AND FULL YEAR 2024
- $57.5 million consolidated total cash and excess liquidity as of December 31, 2024
- $29.3 million cash and cash equivalents as of December 31, 2024
- $28.2 million of liquidity available to UACC under the warehouse credit facilities
- $(36.7) million and $(138.2) million net loss from continuing operations for the fourth quarter and full year, respectively
- $(18.2) million and $(83.4) million Adjusted EBITDA 1 for the fourth quarter and full year, respectively
- Completed recapitalization of unsecured convertible senior notes on January 14, 2025, emerging without any long-term debt at the Vroom, Inc. level, strengthening our balance sheet
- We expect our post-emergence tangible book value 2 to be approximately $150 million as of January 15, 2025
- Extended warehouse agreement with one lender into 2026 in first quarter 2025, and in negotiations to extend additional facilities in the second quarter 2025
- Announced UACC’s 17th securitization transaction on March 3, 2025; issuing $324 million of fixed-rate asset-backed notes, expected to close in mid-March
- Secured $25 million line of credit in March 2025, further strengthening our liquidity position to execute our Long-Term Strategic Plan
Tom Shortt, the Company’s Chief Executive Officer, said, “The last year was pivotal. We successfully wound down our ecommerce used vehicle dealership business, developed a Long-Term Strategic Plan to capitalize on our remaining assets including UACC, CarStory and the Vroom ecommerce technology and IP, began the process of recapitalizing our business and ended the year with $57.5 million of consolidated total cash and excess liquidity. We enter 2025 having completed the recapitalization and with continued focus on executing our Long-Term Strategic Plan.”
1) Adjusted EBITDA is a non-GAAP measure. For definitions and a reconciliation to the most comparable GAAP measure, please see Non-GAAP Financial Measures section below. |
2) Tangible book value is a non-GAAP measure and represents total assets, excluding intangible assets less liabilities. A reconciliation of tangible book value to equity is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the fresh-start accounting valuation adjustments, which have not been completed at this time. |
FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL DISCUSSION
All financial comparisons are on a year-over-year basis unless otherwise noted. The following financial information is unaudited.
Three Months Ended | Year Ended | |||||||||||||||||||||||
2024 | 2023 | $ Change | 2024 | 2023 | $ Change | |||||||||||||||||||
Interest income | $ | 48,681 | $ | 49,540 | $ | (859 | ) | $ | 201,833 | $ | 178,482 | $ | 23,351 | |||||||||||
Interest expense: | ||||||||||||||||||||||||
Warehouse credit facility | 6,568 | 7,635 | (1,067 | ) | 29,276 | 19,914 | 9,362 | |||||||||||||||||
Securitization debt | 8,124 | 5,537 | 2,587 | 30,084 | 21,979 | 8,105 | ||||||||||||||||||
Total interest expense | 14,692 | 13,172 | 1,520 | 59,360 | 41,893 | 17,467 | ||||||||||||||||||
Net interest income | 33,989 | 36,368 | (2,379 | ) | 142,473 | 136,589 | 5,884 | |||||||||||||||||
Realized and unrealized losses, net of recoveries | 31,974 | 46,368 | (14,394 | ) | 119,868 | 122,541 | (2,673 | ) | ||||||||||||||||
Net interest income after losses and recoveries | 2,015 | (10,000 | ) | 12,015 | 22,605 | 14,048 | 8,557 | |||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||
Servicing income | 1,400 | 2,206 | (806 | ) | 6,501 | 10,041 | (3,540 | ) | ||||||||||||||||
Warranties and GAP income (loss), net | 1,737 | 1,981 | (244 | ) | (2,610 | ) | 5,713 | (8,323 | ) | |||||||||||||||
CarStory revenue | 2,828 | 2,992 | (164 | ) | 11,610 | 12,384 | (774 | ) | ||||||||||||||||
Gain on debt extinguishment | — | 18,238 | (18,238 | ) | — | 37,878 | (37,878 | ) | ||||||||||||||||
Other income | 2,506 | 950 | 1,556 | 10,850 | 9,110 | 1,740 | ||||||||||||||||||
Total noninterest income | 8,471 | 26,367 | (17,896 | ) | 26,351 | 75,126 | (48,775 | ) | ||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Compensation and benefits | 20,642 | 22,287 | (1,645 | ) | 97,293 | 86,700 | 10,593 | |||||||||||||||||
Professional fees | 5,617 | 3,487 | 2,130 | 12,035 | 14,552 | (2,517 | ) | |||||||||||||||||
Software and IT costs | 3,065 | 4,866 | (1,801 | ) | 15,083 | 19,601 | (4,518 | ) | ||||||||||||||||
Depreciation and amortization | 7,123 | 7,393 | (270 | ) | 29,086 | 29,113 | (27 | ) | ||||||||||||||||
Interest expense on corporate debt | 1,285 | 1,516 | (231 | ) | 5,826 | 5,976 | (150 | ) | ||||||||||||||||
Impairment charges | — | — | — | 5,159 | — | 5,159 | ||||||||||||||||||
Other expenses | 3,443 | 4,056 | (613 | ) | 16,294 | 17,687 | (1,393 | ) | ||||||||||||||||
Total expenses | 41,175 | 43,605 | (2,430 | ) | 180,776 | 173,629 | 7,147 | |||||||||||||||||
Loss from continuing operations before reorganization items and provision for income taxes | (30,689 | ) | (27,238 | ) | (3,451 | ) | (131,820 | ) | (84,455 | ) | (47,365 | ) | ||||||||||||
Reorganization items, net | 5,564 | — | 5,564 | 5,564 | — | 5,564 | ||||||||||||||||||
Loss from continuing operations before provision for income taxes | (36,253 | ) | (27,238 | ) | (9,015 | ) | (137,384 | ) | (84,455 | ) | (52,929 | ) | ||||||||||||
Provision for income taxes from continuing operations | 463 | (334 | ) | 797 | 856 | 642 | 214 | |||||||||||||||||
Net loss from continuing operations | $ | (36,716 | ) | $ | (26,904 | ) | $ | (9,812 | ) | $ | (138,240 | ) | $ | (85,097 | ) | $ | (53,143 | ) | ||||||
Net loss from discontinued operations | $ | 140 | $ | (114,200 | ) | $ | 114,340 | $ | (26,884 | ) | $ | (279,514 | ) | $ | 252,630 | |||||||||
Net loss | $ | (36,576 | ) | $ | (141,104 | ) | $ | 104,528 | $ | (165,124 | ) | $ | (364,611 | ) | $ | 199,487 | ||||||||
Results by Segment
UACC
Three Months Ended | |||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||
(in thousands) | |||||||||||||||
Interest income | $ | 49,230 | $ | 50,072 | $ | (842 | ) | (1.7 | )% | ||||||
Interest expense: | |||||||||||||||
Warehouse credit facility | 6,568 | 7,635 | (1,067 | ) | (14.0 | )% | |||||||||
Securitization debt | 8,124 | 5,537 | 2,587 | 46.7 | % | ||||||||||
Total interest expense | 14,692 | 13,172 | 1,520 | 11.5 | % | ||||||||||
Net interest income | 34,538 | 36,900 | (2,362 | ) | (6.4 | )% | |||||||||
Realized and unrealized losses, net of recoveries | 21,169 | 29,391 | (8,222 | ) | (28.0 | )% | |||||||||
Net interest income after losses and recoveries | 13,369 | 7,509 | 5,860 | 78.0 | % | ||||||||||
Noninterest income: | |||||||||||||||
Servicing income | 1,400 | 2,206 | (806 | ) | (36.5 | )% | |||||||||
Warranties and GAP income, net | 2,465 | 2,703 | (238 | ) | (8.8 | )% | |||||||||
Other income | 2,068 | 608 | 1,460 | 240.1 | % | ||||||||||
Total noninterest income | 5,933 | 5,517 | 416 | 7.5 | % | ||||||||||
Expenses: | |||||||||||||||
Compensation and benefits | 17,230 | 17,848 | (618 | ) | (3.5 | )% | |||||||||
Professional fees | 1,180 | 991 | 189 | 19.0 | % | ||||||||||
Software and IT costs | 2,349 | 3,071 | (722 | ) | (23.5 | )% | |||||||||
Depreciation and amortization | 5,527 | 5,787 | (260 | ) | (4.5 | )% | |||||||||
Interest expense on corporate debt | 615 | 507 | 108 | 21.2 | % | ||||||||||
Other expenses | 1,887 | 1,889 | (2 | ) | (0.1 | )% | |||||||||
Total expenses | 28,788 | 30,094 | (1,306 | ) | (4.3 | )% | |||||||||
Adjusted EBITDA | $ | (2,719 | ) | $ | (10,765 | ) | $ | 8,046 | 74.7 | % | |||||
Interest income on cash and cash equivalents | $ | (497 | ) | $ | (570 | ) | 73 | 12.8 | % | ||||||
Stock compensation expense | $ | 835 | $ | 580 | 255 | 44.0 | % | ||||||||
Severance | $ | 287 | $ | — | 287 | 100.0 | % | ||||||||
Year Ended | |||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||
(in thousands) | |||||||||||||||
Interest income | $ | 203,962 | $ | 180,970 | $ | 22,992 | 12.7 | % | |||||||
Interest expense: | |||||||||||||||
Warehouse credit facility | 29,276 | 19,914 | 9,362 | 47.0 | % | ||||||||||
Securitization debt | 30,084 | 21,979 | 8,105 | 36.9 | % | ||||||||||
Total interest expense | 59,360 | 41,893 | 17,467 | 41.7 | % | ||||||||||
Net interest income | 144,602 | 139,077 | 5,525 | 4.0 | % | ||||||||||
Realized and unrealized losses, net of recoveries | 98,629 | 92,372 | 6,257 | 6.8 | % | ||||||||||
Net interest income after losses and recoveries | 45,973 | 46,705 | (732 | ) | (1.6 | )% | |||||||||
Noninterest income: | |||||||||||||||
Servicing income | 6,501 | 10,041 | (3,540 | ) | (35.3 | )% | |||||||||
Warranties and GAP income, net | 7,789 | 7,871 | (82 | ) | (1.0 | )% | |||||||||
Other income | 8,334 | 3,209 | 5,125 | 159.7 | % | ||||||||||
Total noninterest income | 22,624 | 21,121 | 1,503 | 7.1 | % | ||||||||||
Expenses: | |||||||||||||||
Compensation and benefits | 76,374 | 67,807 | 8,567 | 12.6 | % | ||||||||||
Professional fees | 3,506 | 5,395 | (1,889 | ) | (35.0 | )% | |||||||||
Software and IT costs | 10,397 | 10,116 | 281 | 2.8 | % | ||||||||||
Depreciation and amortization | 22,683 | 22,685 | (2 | ) | (0.0 | )% | |||||||||
Interest expense on corporate debt | 2,396 | 1,680 | 716 | 42.6 | % | ||||||||||
Impairment charges | 5,159 | — | 5,159 | 100.0 | % | ||||||||||
Other expenses | 9,457 | 7,809 | 1,648 | 21.1 | % | ||||||||||
Total expenses | 129,972 | 115,492 | 14,480 | 12.5 | % | ||||||||||
Adjusted EBITDA | $ | (29,808 | ) | $ | (23,185 | ) | $ | (6,623 | ) | 28.6 | % | ||||
Interest income on cash and cash equivalents | $ | (2,173 | ) | $ | (2,044 | ) | (129 | ) | 6.3 | % | |||||
Stock compensation expense | $ | 2,702 | $ | 2,160 | 542 | 25.1 | % | ||||||||
Severance | $ | 800 | $ | — | 800 | 100.0 | % | ||||||||
CarStory
Three Months Ended | |||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||
(in thousands) | |||||||||||||||
Noninterest income: | |||||||||||||||
CarStory revenue | $ | 2,828 | $ | 2,992 | $ | (164 | ) | (5.5 | )% | ||||||
Other income | 130 | 162 | (32 | ) | (19.8 | )% | |||||||||
Total noninterest income | 2,958 | 3,154 | (196 | ) | (6.2 | )% | |||||||||
Expenses: | |||||||||||||||
Compensation and benefits | 2,491 | 1,803 | 688 | 38.2 | % | ||||||||||
Professional fees | 62 | 76 | (14 | ) | (18.4 | )% | |||||||||
Software and IT costs | 10 | 171 | (161 | ) | (94.1 | )% | |||||||||
Depreciation and amortization | 1,596 | 1,606 | (10 | ) | (0.6 | )% | |||||||||
Other expenses | 114 | 122 | (8 | ) | (6.6 | )% | |||||||||
Total expenses | 4,273 | 3,778 | 495 | 13.1 | % | ||||||||||
Adjusted EBITDA | $ | 192 | $ | 1,078 | $ | (886 | ) | (82.2 | )% | ||||||
Interest income on cash and cash equivalents | $ | (130 | ) | $ | (162 | ) | 32 | 19.9 | % | ||||||
Stock compensation expense | $ | 41 | $ | 258 | (217 | ) | (84.1 | )% | |||||||
Year Ended | |||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||
(in thousands) | |||||||||||||||
Noninterest income: | |||||||||||||||
CarStory revenue | $ | 11,610 | $ | 12,384 | $ | (774 | ) | (6.3 | )% | ||||||
Other income | 692 | 444 | 248 | 55.9 | % | ||||||||||
Total noninterest income | 12,302 | 12,828 | (526 | ) | (4.1 | )% | |||||||||
Expenses: | |||||||||||||||
Compensation and benefits | 10,293 | 8,953 | 1,340 | 15.0 | % | ||||||||||
Professional fees | 152 | 341 | (189 | ) | (55.4 | )% | |||||||||
Software and IT costs | 215 | 197 | 18 | 9.2 | % | ||||||||||
Depreciation and amortization | 6,403 | 6,428 | (25 | ) | (0.4 | )% | |||||||||
Other expenses | 414 | 584 | (170 | ) | (29.1 | )% | |||||||||
Total expenses | 17,477 | 16,503 | 974 | 5.9 | % | ||||||||||
Adjusted EBITDA | $ | 912 | $ | 3,399 | $ | (2,487 | ) | (73.2 | )% | ||||||
Interest income on cash and cash equivalents | $ | (691 | ) | $ | (437 | ) | (254 | ) | 58.1 | % | |||||
Stock compensation expense | $ | 375 | $ | 1,083 | (708 | ) | (65.3 | )% | |||||||
Corporate
Three Months Ended | |||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||
(in thousands) | |||||||||||||||
Interest income | $ | (549 | ) | $ | (532 | ) | $ | (17 | ) | 3.2 | % | ||||
Realized and unrealized losses, net of recoveries | 10,805 | 16,977 | (6,172 | ) | (36.4 | )% | |||||||||
Net interest income after losses and recoveries | (11,354 | ) | (17,509 | ) | 6,155 | 35.2 | % | ||||||||
Noninterest income: | |||||||||||||||
Warranties and GAP loss, net | $ | (728 | ) | $ | (722 | ) | $ | (6 | ) | 0.9 | % | ||||
Gain on debt extinguishment | — | 18,238 | (18,238 | ) | (100.0 | )% | |||||||||
Other income | 308 | 180 | 128 | 71.1 | % | ||||||||||
Total noninterest income | (420 | ) | 17,696 | (18,116 | ) | (102.4 | )% | ||||||||
Expenses: | |||||||||||||||
Compensation and benefits | 921 | 2,636 | (1,715 | ) | (65.1 | )% | |||||||||
Professional fees | 4,375 | 2,419 | 1,956 | 80.8 | % | ||||||||||
Software and IT costs | 706 | 1,624 | (918 | ) | (56.5 | )% | |||||||||
Interest expense on corporate debt | 670 | 1,009 | (339 | ) | (33.6 | )% | |||||||||
Other expenses | 1,442 | 2,044 | (602 | ) | (29.5 | )% | |||||||||
Total expenses | 8,114 | 9,733 | (1,619 | ) | (16.6 | )% | |||||||||
Year Ended | |||||||||||||||
2024 | 2023 | Change | % Change | ||||||||||||
(in thousands) | |||||||||||||||
Interest income | $ | (2,129 | ) | $ | (2,488 | ) | $ | 359 | 14.4 | % | |||||
Realized and unrealized losses, net of recoveries | 21,239 | 30,169 | (8,930 | ) | (29.6 | )% | |||||||||
Net interest income after losses and recoveries | (23,368 | ) | (32,657 | ) | 9,289 | 28.4 | % | ||||||||
Noninterest (loss) income: | |||||||||||||||
Warranties and GAP loss, net | (10,399 | ) | (2,158 | ) | $ | (8,241 | ) | 382.0 | % | ||||||
Gain on debt extinguishment | — | 37,878 | (37,878 | ) | (100.0 | )% | |||||||||
Other income | 1,824 | 5,457 | (3,633 | ) | (66.6 | )% | |||||||||
Total noninterest (loss) income | (8,575 | ) | 41,177 | (49,752 | ) | (120.8 | )% | ||||||||
Expenses: | |||||||||||||||
Compensation and benefits | 10,626 | 9,940 | 686 | 6.9 | % | ||||||||||
Professional fees | 8,377 | 8,816 | (439 | ) | (5.0 | )% | |||||||||
Software and IT costs | 4,471 | 9,288 | (4,817 | ) | (51.9 | )% | |||||||||
Interest expense on corporate debt | 3,430 | 4,296 | (866 | ) | (20.2 | )% | |||||||||
Other expenses | 6,422 | 9,295 | (2,873 | ) | (30.9 | )% | |||||||||
Total expenses | 33,326 | 41,635 | (8,309 | ) | (20.0 | )% | |||||||||
Non-GAAP Financial Measures
In addition to our results determined in accordance with U.S. GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance: EBITDA and Adjusted EBITDA. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with U.S. GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with other operating and financial performance measures presented in accordance with U.S. GAAP. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with U.S. GAAP. We have reconciled all non-GAAP financial measures with the most directly comparable U.S. GAAP financial measures.
EBITDA and Adjusted EBITDA are supplemental performance measures that our management uses to assess our operating performance and the operating leverage in our business. Because EBITDA and Adjusted EBITDA facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes.
EBITDA and Adjusted EBITDA
We calculate EBITDA as net loss before interest expense on corporate debt, interest income on cash and cash equivalents, income tax expense and depreciation and amortization expense.
We calculate Adjusted EBITDA as EBITDA adjusted to exclude stock compensation expense, severance expense related to the continuing operations, bankruptcy costs, which represent professional fees incurred related to the bankruptcy prior to filing of the petition, reorganization items, net, which relate to certain charges incurred during the bankruptcy proceedings, such as legal and professional fees incurred directly as a result of the bankruptcy proceeding, the write-off of deferred financing costs and discount on debt subject to compromise and other related charges, gain on debt extinguishment and long-lived asset impairment charges.
The following table presents a reconciliation of EBITDA and Adjusted EBITDA to net loss from continuing operations, which is the most directly comparable U.S. GAAP measure:
Three Months Ended | Year Ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net loss from continuing operations | $ | (36,716 | ) | $ | (26,904 | ) | $ | (138,240 | ) | $ | (85,097 | ) | ||||
Adjusted to exclude the following: | ||||||||||||||||
Interest expense on corporate debt | 1,285 | 1,516 | 5,826 | 5,976 | ||||||||||||
Interest income on cash and cash equivalents | (719 | ) | (914 | ) | (3,940 | ) | (7,940 | ) | ||||||||
Provision for income taxes | 463 | (334 | ) | 856 | 642 | |||||||||||
Depreciation and amortization | 7,123 | 7,393 | 29,086 | 29,113 | ||||||||||||
EBITDA | $ | (28,564 | ) | $ | (19,243 | ) | $ | (106,412 | ) | $ | (57,306 | ) | ||||
Stock compensation expense | 935 | 1,767 | 5,949 | 6,893 | ||||||||||||
Severance | 287 | — | 2,735 | — | ||||||||||||
Bankruptcy costs (prepetition filing) | 3,582 | — | 3,582 | — | ||||||||||||
Reorganization items, net | 5,564 | — | 5,564 | — | ||||||||||||
Gain on debt extinguishment | — | (18,238 | ) | — | (37,878 | ) | ||||||||||
Impairment charges | — | — | 5,159 | — | ||||||||||||
Adjusted EBITDA | $ | (18,196 | ) | $ | (35,714 | ) | $ | (83,423 | ) | $ | (88,291 | ) |
About Vroom (Nasdaq: VRM)
Vroom owns and operates United Auto Credit Corporation (UACC), a leading indirect automotive lender serving the independent and franchise dealer market nationwide, and CarStory, a leader in AI-powered analytics and digital services for automotive retail. Prior to January 2024, Vroom also operated an end-to-end ecommerce platform to buy and sell used vehicles. Pursuant to its previously announced Value Maximization Plan, Vroom discontinued its ecommerce operations and used vehicle dealership business.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the restructuring, including its impact and intended benefits, our strategic initiatives, cost-savings and their expected benefits, including our ability to execute on our Long-Term Strategic Plan to capitalize on our remaining assets, our expectations regarding UACC's business, including with respect to originations and the impact of credit tightening, future results of operations and financial position, including profitability and our available liquidity under the warehouse credit facilities, and the timing of any of the foregoing. These statements are based on management’s current assumptions and are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, which is available on our Investor Relations website at ir.vroom.com and on the SEC website at www.sec.gov . All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.
VROOM, INC. CONSOLIDATED BALANCE SHEETS (DEBTOR-IN-POSSESSION) (in thousands, except share and per share amounts) (unaudited) | ||||||||
As of | ||||||||
2024 | 2023 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 29,343 | $ | 135,585 | ||||
Restricted cash (including restricted cash of consolidated VIEs of $48.1 million and $49.1 million, respectively) | 49,026 | 73,234 | ||||||
Finance receivables at fair value (including finance receivables of consolidated VIEs of $467.3 million and $341.4 million, respectively) | 503,848 | 348,670 | ||||||
Finance receivables held for sale, net (including finance receivables of consolidated VIEs of $310.0 million and $457.2 million, respectively) | 318,192 | 503,546 | ||||||
Interest receivable (including interest receivables of consolidated VIEs of $13.3 million and $13.7 million, respectively) | 14,067 | 14,484 | ||||||
Property and equipment, net | 4,064 | 4,982 | ||||||
Intangible assets, net | 104,869 | 131,892 | ||||||
Operating lease right-of-use assets | 6,872 | 7,063 | ||||||
Other assets (including other assets of consolidated VIEs of $10.8 million and $13.3 million, respectively) | 35,472 | 59,429 | ||||||
Assets from discontinued operations | 943 | 196,537 | ||||||
Total assets | $ | 1,066,696 | $ | 1,475,422 | ||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | ||||||||
Warehouse credit facilities of consolidated VIEs | $ | 359,912 | $ | 421,268 | ||||
Long-term debt (including securitization debt of consolidated VIEs of $210.7 million at amortized cost and $142.6 million at fair value as of December 31, 2024 and $314.1 million at fair value as of December 31, 2023) | 381,366 | 626,583 | ||||||
Operating lease liabilities | 11,065 | 10,459 | ||||||
Other liabilities (including other liabilities of consolidated VIEs of $13.8 million and $14.3 million, respectively) | 49,699 | 61,321 | ||||||
Liabilities subject to compromise (Note 6) | 291,577 | — | ||||||
Liabilities from discontinued operations | 4,022 | 228,120 | ||||||
Total liabilities | 1,097,641 | 1,347,751 | ||||||
Commitments and contingencies (Note 13) | ||||||||
Stockholders’ (deficit) equity: | ||||||||
Common stock, $0.001 par value; 500,000,000 shares authorized as of December 31, 2024 and December 31, 2023; 1,822,532 and 1,791,286 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively | 2 | 2 | ||||||
Additional paid-in-capital | 2,094,889 | 2,088,381 | ||||||
Accumulated deficit | (2,125,836 | ) | (1,960,712 | ) | ||||
Total stockholders’ (deficit) equity | (30,945 | ) | 127,671 | |||||
Total liabilities and stockholders’ (deficit) equity | $ | 1,066,696 | $ | 1,475,422 | ||||
VROOM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (DEBTOR-IN-POSSESSION) (in thousands, except share and per share amounts) (unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Interest income | $ | 48,681 | 49,540 | $ | 201,833 | $ | 178,482 | |||||||||
Interest expense: | ||||||||||||||||
Warehouse credit facility | 6,568 | 7,635 | 29,276 | 19,914 | ||||||||||||
Securitization debt | 8,124 | 5,537 | 30,084 | 21,979 | ||||||||||||
Total interest expense | 14,692 | 13,172 | 59,360 | 41,893 | ||||||||||||
Net interest income | 33,989 | 36,368 | 142,473 | 136,589 | ||||||||||||
Realized and unrealized losses, net of recoveries | 31,974 | 46,368 | 119,868 | 122,541 | ||||||||||||
Net interest income after losses and recoveries | 2,015 | (10,000 | ) | 22,605 | 14,048 | |||||||||||
Noninterest income: | ||||||||||||||||
Servicing income | 1,400 | 2,206 | 6,501 | 10,041 | ||||||||||||
Warranties and GAP income (loss), net | 1,737 | 1,981 | (2,610 | ) | 5,713 | |||||||||||
CarStory revenue | 2,828 | 2,992 | 11,610 | 12,384 | ||||||||||||
Gain on debt extinguishment | — | 18,238 | — | 37,878 | ||||||||||||
Other income | 2,506 | 950 | 10,850 | 9,110 | ||||||||||||
Total noninterest income | 8,471 | 26,367 | 26,351 | 75,126 | ||||||||||||
Expenses: | ||||||||||||||||
Compensation and benefits | 20,642 | 22,287 | 97,293 | 86,700 | ||||||||||||
Professional fees | 5,617 | 3,487 | 12,035 | 14,552 | ||||||||||||
Software and IT costs | 3,065 | 4,866 | 15,083 | 19,601 | ||||||||||||
Depreciation and amortization | 7,123 | 7,393 | 29,086 | 29,113 | ||||||||||||
Interest expense on corporate debt | 1,285 | 1,516 | 5,826 | 5,976 | ||||||||||||
Impairment charges | — | — | 5,159 | — | ||||||||||||
Other expenses | 3,443 | 4,056 | 16,294 | 17,687 | ||||||||||||
Total expenses | 41,175 | 43,605 | 180,776 | 173,629 | ||||||||||||
Loss from continuing operations before reorganization items and provision for income taxes | (30,689 | ) | (27,238 | ) | (131,820 | ) | (84,455 | ) | ||||||||
Reorganization items, net | 5,564 | — | 5,564 | — | ||||||||||||
Loss from continuing operations before provision for income taxes | (36,253 | ) | (27,238 | ) | (137,384 | ) | (84,455 | ) | ||||||||
Provision for income taxes from continuing operations | 463 | (334 | ) | 856 | 123 | |||||||||||
Net loss from continuing operations | $ | (36,716 | ) | $ | (26,904 | ) | $ | (138,240 | ) | $ | (84,578 | ) | ||||
Net loss from discontinued operations | $ | 140 | $ | (114,200 | ) | $ | (26,884 | ) | (280,033 | ) | ||||||
Net loss | $ | (36,576 | ) | $ | (141,104 | ) | $ | (165,124 | ) | $ | (364,611 | ) | ||||
Net loss per share attributable to common stockholders, continuing operations, basic and diluted | $ | (20.15 | ) | $ | (15.33 | ) | $ | (76.24 | ) | $ | (48.82 | ) | ||||
Net loss per share attributable to common stockholders, discontinued operations, basic and diluted | $ | 0.08 | $ | (65.06 | ) | $ | (14.83 | ) | $ | (160.35 | ) | |||||
Total net loss per share attributable to common stockholders, basic and diluted | $ | (20.07 | ) | $ | (80.38 | ) | $ | (91.07 | ) | $ | (209.17 | ) | ||||
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted | 1,822,293 | 1,755,387 | 1,813,168 | 1,743,128 | ||||||||||||
VROOM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (DEBTOR-IN-POSSESSION) (unaudited) | ||||||||
Year Ended | ||||||||
2024 | 2023 | |||||||
Operating activities | ||||||||
Net loss from continuing operations | $ | (138,240 | ) | $ | (85,097 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Impairment charges | 5,159 | — | ||||||
Profit share receivable | 11,643 | — | ||||||
Gain on debt extinguishment | — | (37,878 | ) | |||||
Depreciation and amortization | 29,086 | 29,113 | ||||||
Amortization of debt issuance costs | 4,270 | 3,348 | ||||||
Losses on finance receivables and securitization debt, net | 129,601 | 100,226 | ||||||
Losses on Warranties and GAP | 8,020 | 7,110 | ||||||
Stock-based compensation expense | 5,885 | 6,893 | ||||||
Provision to record finance receivables held for sale at lower of cost or fair value | (4,618 | ) | 20,566 | |||||
Amortization of unearned discounts on finance receivables at fair value | (15,924 | ) | (25,954 | ) | ||||
Reorganization items | 2,438 | — | ||||||
Other, net | (4,595 | ) | (16,708 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Finance receivables, held for sale | ||||||||
Originations of finance receivables, held for sale | (404,203 | ) | (582,170 | ) | ||||
Principal payments received on finance receivables, held for sale | 186,799 | 105,858 | ||||||
Other | 1,642 | (1,606 | ) | |||||
Interest receivable | 417 | (7,241 | ) | |||||
Other assets | 15,323 | 11,653 | ||||||
Other liabilities | (8,461 | ) | (10,140 | ) | ||||
Net cash used in operating activities from continuing operations | (175,758 | ) | (482,027 | ) | ||||
Net cash provided by (used in) operating activities from discontinued operations | 78,721 | (51,657 | ) | |||||
Net cash used in operating activities | (97,037 | ) | (533,684 | ) | ||||
Investing activities | ||||||||
Finance receivables, held for investment at fair value | ||||||||
Purchases of finance receivables, held for investment at fair value | — | (3,392 | ) | |||||
Principal payments received on finance receivables, held for investment at fair value | 115,937 | 174,748 | ||||||
Consolidation of VIEs | — | 11,409 | ||||||
Principal payments received on beneficial interests | 2,433 | 5,193 | ||||||
Purchase of property and equipment | (3,487 | ) | (2,624 | ) | ||||
Net cash provided by investing activities from continuing operations | 114,883 | 185,334 | ||||||
Net cash provided by (used in) investing activities from discontinued operations | 17,692 | (12,181 | ) | |||||
Net cash provided by investing activities | 132,575 | 173,153 | ||||||
Financing activities | ||||||||
Proceeds from borrowings under secured financing agreements, net of issuance costs | 296,046 | 261,991 | ||||||
Principal repayment under secured financing agreements | (251,529 | ) | (208,476 | ) | ||||
Proceeds from financing of beneficial interests in securitizations | 15,821 | 24,506 | ||||||
Principal repayments of financing of beneficial interests in securitizations | (13,428 | ) | (8,698 | ) | ||||
Proceeds from warehouse credit facilities | 318,600 | 480,100 | ||||||
Repayments of warehouse credit facilities | (379,956 | ) | (290,483 | ) | ||||
Repurchases of convertible senior notes | — | (36,536 | ) | |||||
Proceeds from the issuance of common stock in at-the-market offering, net of offering costs | — | 2,399 | ||||||
Other financing activities | (364 | ) | (1,653 | ) | ||||
Net cash (used in) provided by financing activities from continuing operations | (14,810 | ) | 223,150 | |||||
Net cash used in financing activities from discontinued operations | (151,178 | ) | (125,810 | ) | ||||
Net cash (used in) provided by financing activities | (165,988 | ) | 97,340 | |||||
Net decrease in cash, cash equivalents and restricted cash | (130,450 | ) | (263,191 | ) | ||||
Cash, cash equivalents and restricted cash at the beginning of period | 208,819 | 472,010 | ||||||
Cash, cash equivalents and restricted cash at the end of period | $ | 78,369 | $ | 208,819 | ||||
VROOM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (DEBTOR-IN-POSSESSION) (in thousands) (unaudited) | ||||||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 57,688 | $ | 40,460 | ||||
Cash paid for professional fees for services rendered in connection with the Chapter 11 proceedings | $ | 3,009 | $ | — | ||||
Cash paid for income taxes | $ | (1,426 | ) | $ | 5,363 | |||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Finance receivables from consolidation of 2022-2 securitization transaction | $ | — | $ | 180,706 | ||||
Elimination of beneficial interest from the consolidation of 2022-2 securitization transaction | $ | — | $ | 9,811 | ||||
Securitization debt from consolidation of 2022-2 securitization transaction | $ | — | $ | 186,386 | ||||
Reclassification of finance receivables held for sale to finance receivables at fair value, net | $ | — | $ | 248,081 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250311455012/en/
Investor Relations:
Vroom
Jon Sandison
investors@vroom.com
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