Rubicon Technologies, Inc. (“Rubicon” or the “Company”) (NYSE:
RBT), a leading provider of technology solutions for waste,
recycling, and fleet operations, today celebrates the culmination
of a year of notable achievements, where the Company completed, and
in certain cases surpassed, a range of strategic goals across a
variety of categories.
Business Accomplishments
In the third quarter of 2022, Rubicon outlined its strategic
plan and committed to materially improving its operational
performance and strengthening its financial position. In its
strategic plan, the Company laid out the steps required to achieve
profitability and growth.
Rubicon has completed all of the highest priority tasks from its
strategic plan, with certain goals achieved ahead of schedule.
Specifically, the Company committed to:
- Extending debt maturities. Rubicon successfully pushed
maturities out to 2025 from 2023.
- Improving its liquidity position. Rubicon closed a $75 million
term loan and expanded its revolver capacity by $15 million.
- Reducing expenses. Rubicon reduced expenses by $55 million on
an annualized basis.
- Expanding Adjusted Gross Profit Margin to double digits by the
end of 2023. Rubicon surpassed 10% in the second quarter, ahead of
its goal.
- Securing additional financing. Rubicon brought in an additional
$24 million of equity financing from new and existing investors in
Q2 of 2023.
To underscore the Company’s exceptional performance during an
extremely turbulent time, while completing all of the above it was
able to drive 35.1% growth in Adjusted Gross Profit on a
year-to-date basis in 2023 as compared to the same prior year
period. All of this was accomplished while Rubicon continued to
deliver for its customers, diverting over 800 thousand tons of
waste from landfill equating to approximately 1.6 million MTCO2e
emissions avoided for the first half of 2023.
“This year has been pivotal for Rubicon, and has exemplified our
team’s ability to achieve the Company’s goals while improving our
operational performance,” said Phil Rodoni, CEO of Rubicon. “The
dedication, skill, and passion of our team have never been more
evident, and are the reasons why we have been able to accomplish so
much. Looking ahead, we will build upon these successes, continue
to drive innovation within our industry, and fully deliver on our
commitments to our customers, partners, and investors.”
Customer Highlights
Rubicon also reported key business wins across the Company in
2023, including:
- New, multi-year agreements with commercial customers in a wide
range of industries, including Neiman Marcus, Vail Properties,
Atlantis Management Group, True Food Kitchen, Wood Residential,
Artisent Floors, GoldOller Real Estate Investments, and Acuity
Brands. These companies are now experiencing the full benefits of
Rubicon’s platform for scalable waste and recycling services, which
supports their efforts to reduce environmental impact while
providing exceptional value and service to their own
customers.
- Notable commercial customers renewals, including a five-year
extension with Gap, Inc. (“Gap”) which included all of Gap’s
lifestyle brands (e.g., Old Navy, Gap, Banana Republic, and
Athleta) and Gap Outlet and Banana Republic Factory locations. This
year also saw a two-year extension with both Goodyear Tires and
Americold. RUBICONConnect™ has been deployed at more than 150
Americold locations since 2020, and the Company manages Americold’s
trash, mixed recycling, baled cardboard, baled plastic, and food
waste. The new agreement extends this relationship through the end
of 2025 and includes a go-forward plan to onboard more locations
from within the Americold portfolio.
- New, five-year agreements with the cities of Phoenix, Arizona,
the fifth largest city in the United States; and Austin, Texas, the
tenth largest city in the United States; and new, three-year
agreements with the cities of Denver, Colorado; Atlanta, Georgia;
and Miami, Florida. These five cities alone represent Rubicon’s
technology servicing more than 1.5 million weekly collection
locations. These agreements put our technology products at the
heart of each city’s Public Works Department, digitizing operations
and enabling greater efficiencies.
- In June, Rubicon announced that its RUBICONSmartCity™
technology has been successfully deployed in more than 100 cities,
including eight of the top 20 U.S. cities by population. This
milestone was achieved in just six years, with city adoption
doubling year-over-year over the last few years. In 2023 to date,
Rubicon added an additional 4,776 customer routes, a 41% increase
compared to the same period in 2022.
Technology Innovation
This year, Rubicon also launched a number of key enhancements to
its market-leading technology platform for heavy-duty fleets. The
improved features included:
- Billing: A new module that integrates seamlessly with
the operations module and allows users to bill their customers and
collect payments.
- Navigation: Multiple turn-by-turn navigation
enhancements focused on improving the driver experience through new
travel path planning and management features.
- Artificial Intelligence and Cameras: Rubicon continued
to focus on the application of AI/camera-based technology with new
features that can identify materials that have been improperly or
illegally disposed of at the curb or on the side of the road.
In June 2023, Rubicon hosted its second annual Next Summit, the
premier technology summit for leaders and innovators in solid
waste, fleet operations, and sustainability. The event, which took
place in New York City, attracted hundreds of the Company’s
municipal government and private hauling partners for an enriching
learning experience. Looking ahead to 2024, the event is expanding
to include Rubicon’s commercial partners, facilitating
collaboration across industries, and creating a one-of-a-kind
experience for waste, recycling, and sustainability experts at all
levels. Next Summit attendees are the first to hear about updates
to our technology products, providing an unprecedented opportunity
to provide direct feedback to our development teams.
Sustainability Leadership
In June 2023, Rubicon published its annual Corporate Citizenship
Report which covered the calendar years 2021 and 2022. In the
report, Rubicon’s CEO, Phil Rodoni, is quoted: “We are steadfast in
our belief in the positive impact of business in society, and in
the constructive role companies like ours can and should have on
the world.”
In August 2023, Rubicon launched its Technical Advisory Services
(TAS) offering. Combining circular economy and zero waste expertise
to help Rubicon’s customers meet their sustainability goals, TAS
brings together deep industry expertise, creative solutions, and a
vast network of partners working together to develop valuable
circular economy solutions. From sustainable materials management
strategies to material characterizations to staff education and
roll-out, the Rubicon team is ready to dig into the data and turn
our customer’s waste challenges into opportunities.
About Rubicon
Rubicon builds technology solutions for waste, recycling, and
fleet operations. Bringing together AI-enabled software products
and expert sustainability solutions, the Company helps waste
generators, private and municipal fleets, and material processors
better understand, manage, and reduce waste. As a mission-driven
company, Rubicon helps its customers improve operational
efficiency, unlock economic value, and deliver better environmental
outcomes. To learn more, visit rubicon.com.
Non-GAAP Financial Measures
This press release contains “non-GAAP financial measures,”
including Adjusted Gross Profit and Adjusted Gross Profit Margin,
which are supplemental financial measures that are not calculated
or presented in accordance with generally accepted accounting
principles (GAAP). Such non-GAAP financial measures should not be
considered superior to, as a substitute for or alternative to, and
should be considered in conjunction with, the GAAP financial
measures presented in this press release. The non-GAAP financial
measures in this press release may differ from similarly titled
measures used by other companies. Definitions of these non-GAAP
financial measures, including explanations of the ways in which
Rubicon’s management uses these non-GAAP measures to evaluate its
business, the substantive reasons why Rubicon’s management believes
that these non-GAAP measures provide useful information to
investors and limitations associated with the use of these non-GAAP
measures, are included under “Use of Non-GAAP Financial Measures”
in Exhibit 99.1 to the Company’s Current Report 8-K filed on
November 8, 2023. In addition, reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP financial
measures are included under “Reconciliations of Non-GAAP Financial
Measures” in Exhibit 99.1 to the Company’s Current Report 8-K filed
on November 8, 2023.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995 and within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements, other than statements of present or historical fact
included in this press release, are forward-looking statements.
When used in this press release, the words “could,” “should,”
“will,” “may,” “believe,” “anticipate,” “intend,” “estimate,”
“expect,” “project,” the negative of such terms and other similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such
identifying words. Such forward-looking statements are subject to
risks, uncertainties, and other factors which could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements. These forward-looking statements
are based upon current expectations, estimates, projections, and
assumptions that, while considered reasonable by Rubicon and its
management, are inherently uncertain; factors that may cause actual
results to differ materially from current expectations include, but
are not limited to: 1) the outcome of any legal proceedings that
may be instituted against Rubicon or others following the closing
of the business combination; 2) Rubicon’s ability to continue to
meet the New York Stock Exchange’s listing standards following the
consummation of the business combination; 3) the ability to
recognize the anticipated benefits of the business combination,
which may be affected by, among other things, the ability of the
combined company to grow and manage growth profitably, maintain
relationships with customers and suppliers and retain its
management and key employees; 4) continued costs related to the
business combination; 5) changes in applicable laws or regulations;
6) the possibility that Rubicon may be adversely affected by other
economic, business and/or competitive factors, including the
continued impacts of the COVID-19 pandemic, geopolitical conflicts,
such as the conflict between Israel and Hamas or Russia and
Ukraine, the effects of inflation and potential recessionary
conditions; 7) Rubicon’s execution of anticipated operational
efficiency initiatives, cost reduction measures and financing
arrangements; and 8) other risks and uncertainties set forth in the
sections entitled “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Statements” in the Company’s Annual Report on Form
10-K, Registration Statement on Form S-1, as amended, filed with
the U.S. Securities and Exchange Commission (the “SEC”), and other
documents Rubicon has filed with the SEC. Although Rubicon believes
the expectations reflected in the forward-looking statements are
reasonable, nothing in this press release should be regarded as a
representation by any person that the forward-looking statements
set forth herein will be achieved or that any of the contemplated
results of such forward looking statements will be achieved. There
may be additional risks that Rubicon presently does not know of or
that Rubicon currently believes are immaterial that could also
cause actual results to differ from those contained in the
forward-looking statements, many of which are beyond Rubicon’s
control. You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. Rubicon
does not undertake, and expressly disclaims, any duty to update
these forward-looking statements, except as otherwise required by
applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231220464240/en/
Investor Contact: Alexandra Clark
Director of Finance & Investor Relations
alexandra.clark@rubicon.com
Media Contact: Dan Sampson Chief
Marketing & Corporate Communications Officer
dan.sampson@rubicon.com
Rubicon Technologies (NYSE:RBT)
Historical Stock Chart
From Nov 2024 to Dec 2024
Rubicon Technologies (NYSE:RBT)
Historical Stock Chart
From Dec 2023 to Dec 2024