New York, NY – December 20, 2023 – 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.
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.”
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.
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.
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.
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.
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.
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