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EzFill Holdings, Inc.
8/11/2022
Good day, everyone, and welcome to today's EZ Field Holdings Second Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer period. You may register to ask a question at any time by pressing star 1 on your touchtone phone. If you should need audio assistance during your call today, please press star 0. It is now my pleasure to turn today's call over to Investor Relations, John McNamara. Please go ahead.
Thank you, Ashley. Good afternoon, everybody, and thank you again for joining us for the EZFIL conference call to discuss 2022 second quarter financial results. With us today from management are Mike McConnell, Chief Executive Officer, and Arthur Levine, Chief Financial Officer. Before we begin, as usual, we would remind everyone that certain matters discussed during today's call or answers that may be provided to questions may constitute forward-looking statements as defined under federal securities laws. Words such as may, should, project, expect, intends, plans, believes, anticipates, hopes, estimates, and variations of such words or similar expressions are intended to identify forward-looking statements. These statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the risk factors section of the company's annual report with Form 10-K filed with the SEC. Copies of these documents are available on the SEC's website as well as on the company's website. Actual results may differ materially from those expressed or implied by such forward-looking statements. The company undertakes no obligation to update these statements for revisions or changes at the date of this call, except as required by law. Now I'd like to turn the call over to Mike McConnell. Go ahead, Mike.
Thank you, John. Good afternoon, everyone, and thank you for joining us today to review our second quarter 2022 results. As our press release indicated, we continue to execute our growth strategy as one of the fastest-growing on-demand mobile fuel providers. We grew revenue by more than 100% from the second quarter of last year. We improved our margin per gallon and expanded our operations in key population centers. Overall, we're very pleased with our performance. On a macro level, the trends that drive our business remain strong. We continue to see a decline in the total number of gasoline stations, and I'd note anecdotally that certain California cities have banned new gas stations in the state. We don't necessarily see that as a national trend, and of course, we don't currently do business in California, but it certainly indicates the political environment for new gas stations is not favorable throughout the country. The commercial market remains strong as companies come to recognize that our value proposition goes well beyond the convenience of onsite fueling. Fleet companies recognize that services that we provide help their bottom line by helping them eliminate driver downtime as well as fraud, which reduces their costs. At the same time, consumers have clearly demonstrated a preference for on-demand, on-site delivery of goods and services, and we continue to see a strong and growing evidence that this consumer preference will extend towards mobile fueling. Before Arthur reviews our financial results for the quarter, I'd like to highlight a few key developments in Q2 performance. We've added approximately 30 new fleet customers in the quarter, bringing our total since the beginning of the year to approximately 40. Not only is this a positive development in and of itself, but with each new commercial agreement, we reduce our reliance upon any one large customer. At the time of our IPO, almost 60% of our business came from a single customer. In Q2, that number was less than 40%, and we continue to drive that number down as our business grows. We did land as a new customer one of the country's largest grocery store chains. While we can't get into specifics about the identity, We can state that this is an ideal customer for us, a well-known grocery chain making a decisive entry into home delivery, meeting a growing consumer demand just as we are, with the opportunity to expand the client relationship as they grow, and we demonstrate our value proposition to them. We've expanded operations to additional markets beyond Miami. West Palm Beach, Tampa, and Orlando are now among our markets, and while we have already begun commercial deliveries in these locations, We are working diligently for the approvals to support residential consumers and retail marine demand in these markets as well. Our on-demand consumer and specialty business combined continue to contribute approximately 20% of our revenue. Our fleet size was 30 at the end of Q2 and has since grown to 36 delivery vehicles with more planned for delivery as we grow. We're excited about our recently launched marketing campaign aimed at building brand awareness. This is going to be a comprehensive plan including billboard outdoor, barge, aerial banners, radio, and social media posts, so we're putting a lot of effort into this and we're looking forward to the results. As we approach hurricane season, we're delighted to have launched our emergency fuel services program in which we ensure that clients can rest easy knowing that should a hurricane disrupt fuel supplies, their vehicles will remain fueled. So we've made strong progress on key initiatives. We showed strong revenue growth in both the three months and six months period, as well as the crunch of growth from the first quarter period. We've added customers and increased our fleet. We've expanded into new markets and diversified our customer base. We've laid the groundwork for continued growth in all three of these verticals. And I think it's fair to say that we delivered what we said we deliver, and we expect that we'll continue to see steady progress going forward. With that, I turn the call over to Arthur, who will walk you through the financial results. Go ahead, Arthur.
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