Lazydays Holdings, Inc.

Greetings and welcome to the Lazy Days Holdings second quarter 2024 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, 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 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 being with us today. As in usual form, I'll make some opening comments. Amber will talk about operations. Kelly will discuss our financial results, and then we'll take a couple of questions. Obviously, the second quarter didn't develop as we had hoped. consumer demand for discretionary items, including recreational vehicles, has been under pressure, and the recovery anticipated in 2024 remains elusive. According to Statistical Surveys, Inc., U.S. retail year-over-year RV registrations declined 6% in April, 10% in May, and 21% in June. While this might suggest that trends are deteriorating sequentially, we believe It is more indicative that the seasonal sales increases typically experienced in the summer months did not occur this year. Our best view is that the second quarter sales trajectory continued in July, and most industry experts are pointing to 2025 as the likely inflection for a meaningful industry recovery. So facing that backdrop, we have continued to focus on the things we can control, maintaining healthy vehicle inventory, improving F&I per unit, and achieving substantial total gross margin improvements sequentially from the first quarter. Given the unit sales volume and financial results in the quarter, subsequently we implemented further cost reduction actions in August that should be substantially complete by the end of next month. We anticipate these decisions will save approximately $25 million annually. We also closed one underpouring location and consolidated two locations into one that were in close proximity in our Arizona market. While portfolio optimization decisions are difficult, they are necessary. Despite these two-store actions, we remain enthusiastic about the rest of our best-in-class locations and will continue to adjust our expense structure as necessary to match the revenue opportunities available. Since the end of the second quarter, we have continued to focus on preserving liquidity, maintaining our healthy inventory levels, and deferring all non-essential spending. We are also pleased to announce that Coliseum Capital Management is committed to advancing another $5 million against their outstanding mortgage facility, which will be a further boost to provide operational flexibility for the fall. As always, I want to thank our entire team for delivering the improvements and operating results that are within our control and providing exceptional customer experiences as we await the market recovery. We remain confident in the earnings power of our company and look forward to unlocking its full potential as the industry recovers. And with that, I'll hand it over to Amber.