Lazydays Holdings, Inc.

Greetings and welcome to the Lazy Days Holdings third quarter 2023 conference call. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kelly Porter, Chief Financial Officer. Thank you. You may begin.

Good morning, everyone, and thank you for joining us. On the call with me today are John North, CEO, and Amber Dillard, VP of Supply Chain. Before we begin, I would like to remind everyone that we will be discussing forward-looking information including potential future financial performance, which is subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from such forward-looking statements and information. Such risks, uncertainties, assumptions, and other factors are identified in our earnings release and other periodic filings with the SEC, as well as the investor relations section of our website. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results and any or all of our forward-looking statements may prove to be inaccurate. We can make no guarantees about our future performance, and we undertake no obligation to update or revise our forward-looking statements. On this call, we will discuss certain non-GAAP financial measures. Please refer to our earnings press release, which is available on our website, for how we define these measures and reconciliations to the closest comparable GAAP measures. With that, I'd like to turn the call over to John North, our Chief Executive Officer.

Thanks Kelly. Hello everyone. I want to thank you first for taking interest in our company and reviewing our call today. I'll make some brief opening remarks. Kelly will take you through our financial results and then we'll open it up for a few questions. Obviously the third quarter was a difficult one and our financial results are disappointing to me and our team. Since I joined the company just over a year ago, we have been working diligently on four main strategic initiatives. First, to be relentless in our execution and efficiencies. Second, to aspire to be the partner of choice with our OEMs. Third, to act like an owner and allocate capital responsibly and with a long-term mindset. And finally, to grow and leverage our infrastructure to deliver above-average metrics and superior return on invested capital. While the ultimate barometer of success lies in our financial performance, I am pleased that we have continued to make considerable progress against all four initiatives. First, to speak to execution and efficiencies. Our inventory remains healthy, thanks to our team's relentless focus and hard work. We have around 100 2022 model year units remaining, and 47% of our overall inventory is model year 2024. We have reduced our new unit days supply from 250 units at the end of last year to 171 this year, and have intensified our used inventory procurement efforts, more than doubling our previous record in both the months of September and October. We have been removing costs from the organization. We have eliminated all unnecessary overhead, renegotiated with key vendors and switched to lower cost providers in other situations, and made the difficult decisions around reducing headcount and modifying pay plans in our stores. As a result, our overall SG&A is down over 13% in the third quarter, despite the addition of five new locations since the same quarter last year. With that said, we'll still remain vigilant and laser-focused on matching our overhead with what the market gives us, even if it means further changes. As our second objective, we continue to strive to be the partner of choice with our OEMs. We have completed three acquisitions and opened three greenfields year-to-date and have more growth on the horizon. To that end, last month we announced a rights offering to raise an additional $100 million in equity capital for growth. These rights are issued to our existing shareholders and allow each of you to participate equally to maintain your current ownership percentage. They also allow an oversubscription right where you can contribute more capital if not every shareholder chooses to participate. The upside of the current operating environment is both the quality and quantity of acquisition opportunities available. We see both individual locations and multi-store platforms actively being marketed and believe many other locations may become available over the next few quarters. Coming off the windfall COVID profits generated in 2020 and 2021, many independent dealers are reaching the end of their patients or their careers and need a monetization event. To size the opportunity, we believe over $600 million of acquisition revenue could be generated to the capital we will raise and deploy in the near term. As a housekeeping matter, we would encourage you to contact your broker or Broadridge if you need more information. as the window to make an election expires on November 14th. On behalf of the entire management team, we want to thank you for your trust and will endeavor with maximum effort to deliver a compelling return on the money we are raising. In pursuit of our third objective, we have invested significant capital in our existing facilities to make them fit for purpose and of scale and to ensure they provide our customers and employees a peerless experience. As I previously discussed, we endeavor to own our relocations and successfully obtained long-term mortgage financing on a number of them over the summer. We believe that an owner's mindset with actions taken for 10 years from now versus 10 weeks from now will create significant value for our shareholders over time. And for our fourth and final initiative, we have continued to optimize and grow the organization through the current operating environment and industry dynamics. We have been steadily improving our infrastructure, particularly in our technology and marketing departments. While these are not changes that are immediately apparent externally, we believe they will result in significant improvements to our scale and abilities. In closing, I again want to thank our team. They come to work each day with a singular mission to provide the best sales and service experience in the industry. Time and again, I am impressed by their dedication and wherewithal. I sincerely thank all of you, our fantastic employees. With that, I'll turn the call over to Kelly to take you through the financials.