Lazydays Holdings, Inc. (NASDAQ:LAZY) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 10:00 am ET

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Lazydays Holdings, Inc. (NASDAQ:LAZY) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Suzanne, and I will be your conference operator today. At this time, I would like to welcome everyone to the Lazydays Holdings, Inc. Third Quarter 2019 Financial Results Conference Call. All lines are placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. [Operator Instructions]

Mr. James Meehan, Corporate Controller, you may now begin.

Executive
James Meehan

Thank you, Suzanne. Good morning, and thank you for joining us for our third quarter 2019 financial results conference call. I'm James Meehan, Corporate Controller at Lazydays.

We issued the company's earnings press release this morning. A copy of the earnings release is available under the Events and Presentations section to the Investor Relations page of our website and has been furnished as an exhibit to our current report on Form 8-K filed with the SEC. With me on the call today are Mr. Bill Murnane, our Chairman and Chief Executive Officer; and Mr. Nick Tomashot, our Chief Financial Officer.

As a reminder, please note that some of the information that you will hear today during our discussion may consist of forward-looking statements, including without limitation, statements regarding revenue, gross margins, operating expenses, stock-based compensation expense, tax, product mix shift and geographic expansion. Actual results or trends for future periods could differ materially from the forward-looking statements as a result of many factors. For additional information regarding factors that could impact the forward-looking statements, please refer to the risk factors discussed in the Form 10-K filed with the SEC on March 22, 2019.

We also will discuss non-GAAP measures of financial performance that we believe are useful to the company, including EBITDA, adjusted EBITDA and adjusted EBITDA margin. Please refer to our earnings press release for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures.

For the three months ended September 30, 2019, and 2018 as well as the nine months ended September 30, 2019, the financial information presented represents the operating results of Lazydays Holdings, Inc. For the nine months ended September 30, 2018, the financial information presented represents the combined operating results of Lazydays Holdings, Inc. for the period from March 15, 2018 to September 30, 2018, with the operating results of Lazy Days' R.V. Center, Inc. for the period from January 1, 2018 to March 14, 2018.

Now it is my pleasure to introduce Bill Murnane.

Executive
William Murnane

Thank you, James, and good morning, everyone. Thank you for joining us this morning. I will give a quick overview of what we are seeing in our markets, and then Nick will give more details on our specific performance.

In the third quarter, we saw a continuation of the weaker demand that began in September 2018. Destocking also continued in the third quarter, and we believe the pace of destocking was more aggressive in the third quarter for a number of reasons. First, there was a model year change in the quarter and this created a lot of incentive to