RumbleOn, Inc.

Greetings and welcome to the RumbleOn, Inc. Fourth Quarter and Full Year 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, Elliot Wagner, Vice President of Finance. Thank you. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining us on this conference call to discuss Rumbelon's fourth quarter and full year 2024 financial results. Joining me on the call today are Mike Corteri, Rumbelon's Chief Executive Officer, and Tiffany Kite, Rumbelon's Chief Financial Officer. Our Q4 and full year results are detailed in the press release we issued this morning, and supplemental information will be available in our Form 10-K once filed. Before we start, I would like to remind you that the following discussion contains forward-looking statements, including, but not limited to, RumbleOn's market opportunities and future financial results. It 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 RumbleOn'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 RumbleOn 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 those non-GAAP financial measures, please see our earnings release issued earlier this morning. Now I'll turn the call over to Mike Portieri, RumbleOn's CEO.

Mike? Good morning, everyone, and thank you for joining us for RumbleOn's fourth quarter and full year earnings call. It's great to be here with you on my first earnings call with the company. I'm very excited to have taken over the reins of RumbleOn and honored that the board has placed its trust in me to lead the company. As CEO of the leading consolidator of power sports dealerships in the country, I'm drawing on my experiences within publicly traded companies such as Dave & Buster's, Las Vegas Sands, and Scientific Games. My roles within these companies gave me hands-on experience managing multi-unit consumer-facing operations, value-creating M&A, and balance sheet optimization, as well as on overall financial rigor and discipline focused on driving free cash flow and delivering shareholder value. When I joined the board back in April, I developed a high level view of the business and recognized that while there were challenges, there were also a large opportunity to improve our overall execution. Over the last two months, I've had the opportunity to visit a number of our dealerships and meet with the teams that drive the business on a daily basis. We have identified key work streams and efficiency opportunities and are prioritizing specific initiatives. all with a focus on delivering improved results, driving free cash flow, and creating value. It is my goal to foster a high-performance culture within our company. To that end, I'm excited to be partnering with Camtac, our newly appointed chief operating officer. Cam grew up in the power sports dealership business and has a lifetime of hands-on experience in all aspects of our frontline operations. In the short term, I believe there are immediate opportunities to enhance revenue, right-size the organization, and grow EBITDA and free cash flow. It is critical we build a strong foundation for future growth by streamlining our cost structure and further standardizing our systems and processes. Over time, I expect to accelerate our growth, both via acquisition and organic avenues, and we will allocate our capital to the highest return opportunities. It is no secret we are operating in a difficult environment from a macro and industry perspective. That being said, I am proud of the team's performance, especially our frontline teams in our stores. And I believe the actions we are taking during this difficult time for our industry will enable us to emerge a much stronger company. As we mentioned on previous calls, We set a goal to reduce new inventories by 50 million for the full year 2024. We have exceeded that inventory reduction goal, reducing new inventories by over 80 million, and believe we are going into 2025 with the appropriate level of new inventory. Regarding cost and efficiency, while the company took steps last year to lower our expense structure, Having been in the seat for two months now, I believe there is further opportunity to lower our costs. Our asset light vehicle transportation brokerage business, Wholesale Express, was able to deliver growth in units transported in 2024. However, a change in leadership in this segment and the subsequent exiting of nearly all of our sales team, known as brokers, in the first quarter of 2025 will likely result in a significant reduction in volumes in 2025. We've taken immediate and decisive actions to mitigate the effect of this turnover. We've recruited a new experienced management team to lead the operation, and they are moving forward with solid traction in attracting new brokers. Although we expect 2025 results from this segment to take a large step back from 2024, We are expecting to achieve positive EBITDA from this segment in 2025 and believe that the operation is far better positioned for more sustainable long-term growth and potential further integration into our power sports division. Looking forward, we are going to discontinue any reference to the Vision 2026 plan laid out by our prior management. In my experience, while it's good to have aspirational goals in mind, Our focus needs to remain on driving profitability, growing the company, and creating shareholder value day in and day out. Over time, our results will speak for themselves. Furthermore, the global tariff landscape is dynamic and rapidly changing. Assuming currently contemplated tariffs are enacted and persist, affordability of certain products we sell could be hampered, negatively impacting customer demand. I'll conclude by saying again that I'm very excited to be here. I'm focused on instilling a high-performance winning culture and building a strong foundation for growth while improving profitability. Two of our largest shareholders, Mark Tack and Bill Coulter, founded the core of RumbleOn over 30 years ago through their company, RightNow, which was acquired by RumbleOn a few years ago. Under Mark and Bill, RightNow was a well-run and profitable business. As I take over the helm as CEO, my overarching goal is to return the company to operational excellence and reinstill that winning culture that existed for so many years. With 55% of outstanding shares owned by members of the board, rest assured, we and the board will continue to make decisions in the best interest of long-term per share value creation. Now I'd like to turn the call over to Tiffany to walk us through the fourth quarter financial performance in detail.