Lazydays Holdings, Inc.

Greetings and welcome to the Lazy Days Holdings 4th Quarter 2023 Conference Call. As a reminder, this conference is being recorded. It's 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, Vice President, Operations. 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. Good morning, everyone. Thanks for coming in today. I'll make a couple of brief opening remarks. I'll let Amber talk about operations. Kelly can take you through our financial results, and then we're happy to have a few questions at the end. It's obviously been an eventful few months since we spoke with you in early November. We've had some important developments occurring both in the industry and within our organization. By now, we've heard from both large dealer groups, and several OEM partners, and we validated their comments against the market data provided by vehicle registration reporting services surrounding the fourth quarter and as of yesterday into January. Similar to what they reported, we saw industry-wide economic pressures in November that resulted in retail sales below our expectations and has seen continued headwinds into December and January as well. In the fourth quarter, as a result, we took decisive action to increase our marketing spend and to adjust retail pricing And as a result, we saw significant improvement in volume for the months of December, January, and February, both sequentially and year over year. Our current expectation is to report a pre-tax loss for the first quarter of this year, but we anticipate being profitable and operationally cash flow positive for the full year. From a liquidity perspective, Kelly and our finance team have been hard at work. They secured a $35 million mortgage facility in December and more recently worked with our lender partners, for additional operational flexibility with our covenants over the next few quarters as we move into the summer peak selling season. Operationally, Amber and our store leaders have been working diligently to improve the health of both our new and used inventory through discipline management around both stocking levels and pricing actions, as well as partnering with our OEMs to obtain assistance from them wherever possible. From a cost control standpoint, we've continued to focus on finding areas of unnecessary or redundant spending, and have been able to reduce SG&A expense year-over-year, despite increasing our storefront print price over 40% in 2023. In January, we also launched a complete rebranding effort with a new website, fonts, logos, and colors, and even a new stock symbol. We are no longer using the ticker LAZY, instead we have rebranded as GORV, which is more action-inspired. and true to our culture to facilitate helping our customers find the freedom to be outdoors and do the things they love, however they use their RV. Importantly, these rebranding efforts will enhance our digital retail experience, particularly on mobile devices, which account for over 80% of our website traffic every day. In terms of corporate development, as a reminder, we started 2023 with 16 locations and ended the year with 24 operating dealerships. Earlier this week, we announced the opening of our last Greenfield location, but has been development since all the way back in 2021 in Arizona, bringing our current store count to 25. Finally, we remain focused on driving integration with our newly opened or acquired locations and anticipate less acquisition activity in 2024 compared to last year. But we will still continue to look for attractive opportunities, both on a tuck-in and strategic basis. Given the depressed macro environment and the significant number of stores we've added over the past year, we understand it can be difficult to calibrate the underlying earnings power of our business. To that end, we want to provide a picture of what we believe the business looks like in a normal year. As we think about our business in a mid-cycle environment, we're confident in our ability to generate over $1.5 billion in annualized revenue while delivering a high single-digit EBITDA margin. While this is a challenging time for the industry, excuse me, We strongly believe we are well positioned for 2024 and beyond with a solid balance sheet, healthy inventory, fantastic retail locations, strong operators, and an incredible brand. With that, I'll turn the call over to Amber.