Strong Pre-Owned Segment Performance
Pre-owned unit sales increased by 10.2%, and pre-owned gross margins improved to 18.8% from 17% in the same quarter last year.
Adjusted EBITDA Improvement
Despite an 11% decline in revenue, adjusted EBITDA increased by $1 million compared to the same quarter last year.
Cost Discipline and SG&A Reduction
Total company adjusted SG&A expenses were reduced by $5.9 million, an 8.3% decrease compared to the same quarter last year.
Strategic Rebranding and Leadership Initiatives
The company is rebranding to RideNow Group Inc., aligning corporate and store operations, and bringing in leaders with retail and dealership experience.
Debt Refinancing and Lower Interest Rates
The company extended its term loan maturity by 13 months and lowered its annual interest rate by 0.5%, resulting in a $3.4 million reduction in annualized cash interest expense.