RumbleOn, Inc.

Greetings and welcome to Rumble On Incorporated second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tom Zaleski, Vice President, Finance and Treasurer. Thank you. Please go ahead.

Thank you, operator. Good morning, everyone. Thank you for joining us on this conference call to discuss Rumble On's second quarter 2024 financial results. Joining me on the call today are Mike Kennedy, Rumble On's chief executive officer, and Tiffany Kice, Rumble On's chief financial officer. Our Q2 results are detailed in the press release we issued earlier this morning. and supplemental information will be available in our second quarter form 10Q once filed. Before I start, I would like to remind you that the following discussion contains forward-looking statements, including but not limited to Rumble Lawn's market opportunities and future financial results, and involves risks and uncertainties that may cause actual results to differ materially from those discussed here. Additional information that could cause actual results to differ from forward-looking statements can be found in Rumble Lawn's periodic and other SEC filings. The forward-looking statements and risks in this conference call, including responses to your questions, are based on current expectations as of today, and Rumble Law assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. Also, the following discussion contains non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures, please see our earnings release issued earlier this morning. Now I'll turn the call over to Mike Kennedy, our CEO. Mike?

Thank you, Tom, and good morning, everyone. Thank you for your interest in RumbleOn and for joining us on the call this morning. Joining me on today's call is Tiffany Keis, our new chief financial officer appointed in June. Tiffany brings over 25 years of experience in financial leadership roles for public and private companies. Her experience with growth-focused, multi-location retail businesses makes her a perfect fit for RumbleOn as we continue to transform our business, and drive our performance to our Vision 2026 goals. Tiffany is already finding ways to positively impact the business and to better align our reporting to industry standards, and you'll hear about those elements shortly. And also on the call, you heard from Tom earlier, and also joining us is Elliot Wagner, our Vice President of Finance. Our second quarter performance reflects the strength of our PowerSports dealership group as we continue to progress on our turnaround. It is a challenging time for the power sports industry as we navigate a high interest rate environment, a cautious consumer, and inflated new major unit inventories. Despite these challenges, I'm proud of the way our team has responded, and we continue to focus on our goal to run the best power sports dealerships in America. The team's effort delivered positive free cash flow during the first six months of 2024, and we expect to continue to deliver positive free cash flow in the back half of 2024. we remain laser focused on achieving our Vision 2026 goals, which we outline in March of this year. When I joined the company in November, I was excited about the opportunity I saw in the business. My excitement has grown as we gain traction on each of the three pillars of our Vision 2026 strategy and align our team. As an example, you've heard me mention our building of a composite culture and continuous improvement mindset to run the best performing viewerships in America supported by an aligned and efficient corporate office. Towards the end of second quarter, we continue to make improvements in optimizing our cost structure. We've made the decision to streamline our workforce as we accelerate our actions to drive towards our Vision 2026 goals. These actions resulted in a reduction in force of approximately 10%, as well as some corporate and marketing reductions. We expect to generate $15 million in savings in the back half of 2024, and $30 million annualized going forward as a result of driving our strategy and aligning our team to Vision 2026. Continuing on with our focus on growth and value creation, I wanted to provide an update on our previously announced intention to open our first pre-owned center this year. I'm excited to announce that right now, Power Sports of Houston is now open and fully operational after some early setbacks from Hurricane Beryl. Houston is a great new power sports market for us, and the team is excited about the momentum this new store opening builds. We are poised to continue growth via acquisitions and greenfield opportunities as they arise. As a reminder, this Houston project is a pilot and we are focused on analyzing its operating results and our ability to scale this new model across more markets. We're also very close on the previously mentioned first acquisition since my arrival at the company. We remain focused on our acquisition pipeline activity and we are encouraged by the number of opportunities. We will be selective and only deploy capital where it makes financial sense and builds per share value. And with that, I'd like to turn the call over to Tiffany to walk us through this quarter's financial performance and talk about some of the financial reporting changes we're implementing to better align the industry standards.