Lazydays Holdings, Inc.

Greetings, and welcome to the Lazy Days Holdings first quarter 2024 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 of 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 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, everybody. Thanks for calling in. As usual, I'll kick things off. I'll let Amber talk about operations. Kelly can speak to the financial results, and then we'll hopefully take a couple of questions. We, along with the rest of the industry, have been working hard to adapt to the current retail environment, namely sales softness coupled with an industry-wide inventory overhang of aging 2022 and 2023 units. To that end, we've been focused on what we can control, First, inventory health. Second, increasing use procurement. Third, driving finance and insurance performance higher. And fourth, controlling cost. I'm pleased to report we've made significant progress in all these areas since we spoke to you about 60 days ago. The variable in the equation that has been outside of our control is retail demand. The increase in sales velocity we expected through March and April did not materialize. Based on the most recent SSI data, Nationwide new unit sales were down in March over 17% from 2023. We performed better than the market, but still saw year-over-year declines. We attribute this to three factors. First is lower consumer demand. Second is negative equity on many units purchased during the pandemic. And third is dealers that we compete against that were slower to respond and discount aging inventory did so, and that drove consumer traffic toward their better deals and away from our healthier priced offerings. Fortunately, we have fantastic partners with our OEMs, lenders, and investors. We've received continued financial support on our units and inventory, flexibility on our credit facility again this month, and a further injection of liquidity, raising $15 million through an expansion of our mortgage financing. Our cash position today is almost unchanged from where we ended the first quarter and remains almost 20% higher than where we finished the third quarter of 2023. In summary, our inventory is healthy. We are driving operational improvements and vehicle gross profit per unit continues to improve, but increasing unit volume continues to be elusive. Given the start to the year and our outlook for the rest of 2024, we are projecting a pre-tax loss, but anticipate positive EBITDA and adjusted free cash flow. Finally, the team is engaged, working hard together, and continues to identify ways to pursue every retail opportunity that is available in the market. I want to thank all of our employees for their hard work. And with that, I'll let Amber take it over.