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LAZYDAYS REPORTS SECOND QUARTER 2024 RESULTS

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Lazydays (GORV) reported Q2 2024 results with total revenue of $238.7 million, down from $308.4 million in Q2 2023. The company posted a net loss of $44.2 million compared to a net income of $3.6 million in the same period last year. Adjusted net loss was $18.4 million, with a loss per diluted share of $3.22.

Key points:

  • F&I per unit improved to over $5,300, up 6.9%
  • Implemented cost reduction actions expected to save $25 million annually
  • Closed Waller, Texas dealership and consolidated operations in Surprise, Arizona
  • Received nonbinding commitment for additional $5 million in capital
  • Executed temporary waiver for financial covenants

Lazydays (GORV) ha pubblicato i risultati del secondo trimestre del 2024, con un fatturato totale di 238,7 milioni di dollari, in calo rispetto ai 308,4 milioni di dollari del secondo trimestre del 2023. L'azienda ha registrato una perdita netta di 44,2 milioni di dollari, rispetto a un utile netto di 3,6 milioni di dollari nello stesso periodo dell'anno scorso. La perdita netta rettificata è stata di 18,4 milioni di dollari, con una perdita per azione diluita di 3,22 dollari.

Punti chiave:

  • F&I per unità migliorato a oltre 5.300 dollari, con un aumento del 6,9%
  • Implementate azioni di riduzione dei costi attese per risparmiare 25 milioni di dollari all'anno
  • Chiusura della concessionaria di Waller, Texas, e consolidamento delle operazioni a Surprise, Arizona
  • Ricevuta un'impegno non vincolante per ulteriori 5 milioni di dollari in capitale
  • Eseguita una deroga temporanea per i contratti finanziari

Lazydays (GORV) reportó los resultados del segundo trimestre de 2024, con ingresos totales de 238,7 millones de dólares, en comparación con 308,4 millones de dólares en el segundo trimestre de 2023. La compañía reportó una pérdida neta de 44,2 millones de dólares frente a un ingreso neto de 3,6 millones de dólares en el mismo período del año pasado. La pérdida neta ajustada fue de 18,4 millones de dólares, con una pérdida por acción diluida de 3,22 dólares.

Puntos clave:

  • F&I por unidad mejoró a más de 5,300 dólares, un aumento del 6.9%
  • Acciones de reducción de costos implementadas que se esperan ahorren 25 millones de dólares anuales
  • Cerró la concesionaria de Waller, Texas, y consolidó operaciones en Surprise, Arizona
  • Recibió un compromiso no vinculante por 5 millones de dólares adicionales en capital
  • Ejecutó una exención temporal para los convenios financieros

Lazydays (GORV)는 2024년 2분기 실적을 발표하며 총 수익이 2억 3,870만 달러로, 2023년 2분기 3억 8,840만 달러에서 감소했다고 전했습니다. 회사는 지난해 같은 기간에 비해 4,420만 달러의 순손실을 기록했으며, 지난해 같은 기간에 비해 360만 달러의 순이익을 올렸습니다. 조정된 순손실은 1,840만 달러로, 희석 주당 손실은 3.22달러입니다.

주요 사항:

  • 단위당 F&I가 5,300달러 이상으로 6.9% 개선됨
  • 연간 2,500만 달러 절감이 예상되는 비용 절감 조치 시행
  • 텍사스주 월러의 대리점을 폐쇄하고 애리조나주 서프라이즈에서 운영 통합
  • 추가 자본으로 500만 달러의 비구속 약속을 수령
  • 재무 계약에 대한 임시 면제를 집행

Lazydays (GORV) a publié ses résultats pour le deuxième trimestre 2024, avec un chiffre d'affaires total de 238,7 millions de dollars, en baisse par rapport à 308,4 millions de dollars au deuxième trimestre 2023. L'entreprise a affiché une perte nette de 44,2 millions de dollars, comparée à un bénéfice net de 3,6 millions de dollars au même période de l'année précédente. La perte nette ajustée était de 18,4 millions de dollars, avec une perte par action diluée de 3,22 dollars.

Points clés :

  • Le F&I par unité a augmenté à plus de 5 300 dollars, soit une augmentation de 6,9%
  • Mesures de réduction des coûts mises en œuvre pour une économie attendue de 25 millions de dollars par an
  • Fermeture de la concession à Waller, Texas, et consolidation des opérations à Surprise, Arizona
  • Engagement non contraignant reçu pour un capital supplémentaire de 5 millions de dollars
  • Exemption temporaire pour les engagements financiers mise en œuvre

Lazydays (GORV) hat die Ergebnisse des zweiten Quartals 2024 veröffentlicht, mit einem Gesamtumsatz von 238,7 Millionen Dollar, ein Rückgang von 308,4 Millionen Dollar im zweiten Quartal 2023. Das Unternehmen verzeichnete einen Nettoverlust von 44,2 Millionen Dollar im Vergleich zu einem Nettogewinn von 3,6 Millionen Dollar im selben Zeitraum des Vorjahres. Der bereinigte Nettoverlust betrug 18,4 Millionen Dollar, mit einem Verlust pro verwässerter Aktie von 3,22 Dollar.

Wichtige Punkte:

  • F&I pro Einheit verbesserte sich auf über 5.300 Dollar, ein Anstieg von 6,9%
  • Umgesetzte Kostensenkungsmaßnahmen sollen jährlich 25 Millionen Dollar einsparen
  • Schließung des Autohauses in Waller, Texas, und Konsolidierung der Geschäfte in Surprise, Arizona
  • Erhalt einer unverbindlichen Zusage über zusätzliche 5 Millionen Dollar an Kapital
  • Vorübergehende Ausnahme für finanzielle Verbindlichkeiten umgesetzt
Positive
  • F&I per unit improved to over $5,300, up 6.9% despite lower average selling prices
  • Implemented cost reduction actions expected to save $25 million annually
  • Received nonbinding commitment for additional $5 million in capital
  • Executed temporary waiver for financial covenants, providing additional runway for credit facility amendment
Negative
  • Total revenue decreased to $238.7 million from $308.4 million in Q2 2023
  • Net loss of $44.2 million compared to net income of $3.6 million in Q2 2023
  • Adjusted net loss of $18.4 million compared to adjusted net income of $3.9 million in Q2 2023
  • Decline in both new and used unit volume on a same-store basis
  • Trade-ins on vehicle sales down approximately 50% compared to historical averages
  • Closed Waller, Texas dealership and consolidated operations in Surprise, Arizona

Insights

Lazydays' Q2 2024 results reveal significant challenges. Revenue dropped to $238.7 million from $308.4 million in Q2 2023, while the company swung to a net loss of $44.2 million from a profit of $3.6 million last year. The adjusted net loss per share of $1.42 is concerning, indicating underlying operational issues beyond one-time charges.

The company's focus on inventory management and F&I improvements hasn't offset the decline in sales volume. The 17% drop in average selling prices and 50% reduction in trade-ins signal a weakening market. The $25 million annual cost-saving measures and dealership closures reflect a necessary but potentially painful restructuring.

Lazydays' financial position appears precarious, with a temporary waiver on financial covenants and the reclassification of long-term debt to current liabilities. The additional $5 million capital from Coliseum and potential warrant issuance suggest a pressing need for liquidity. Investors should closely monitor the company's ability to secure additional financing and navigate the challenging RV market conditions.

The RV industry is facing significant headwinds, as evidenced by Lazydays' performance. The lack of anticipated seasonal improvement in Q2 sales volume is particularly concerning, suggesting broader market weakness. The 17% drop in average selling prices indicates potential oversupply or reduced consumer demand, possibly due to economic uncertainties or shifting consumer preferences.

Lazydays' inventory composition, with 75% towable products, up from 70% last year, may reflect a strategic shift towards more affordable options. However, the struggle to procure used units directly from consumers, with trade-ins down 50%, signals a potential disconnect between new and used RV markets.

The company's focus on F&I performance, achieving over $5,300 per unit (up 6.9%), demonstrates efforts to maximize profitability in a challenging environment. However, this alone isn't offsetting the volume decline. The market recovery Lazydays is awaiting may be slower than anticipated, necessitating further operational adjustments in the short to medium term.

TAMPA, Fla., Aug. 15, 2024 /PRNewswire/ -- Lazydays (NasdaqCM: GORV) today reports results for the second quarter ended June 30, 2024.

John North, Chief Executive Officer, commented, "Our team has focused on maintaining healthy vehicle inventory, improving F&I per unit and achieving substantial total gross margin improvement sequentially. However, the seasonal improvement in sales volume we had anticipated to occur in the second quarter did not materialize. On a same-store basis, we saw a decline in both new and used unit volume relative to the first quarter, partially offset by significantly improved gross profit per unit sold reflecting the benefits of the inventory actions we took earlier this year. Our same store F&I was over $5,300 per unit, up 6.9%, despite average selling prices being lower by approximately 17% on a blended basis.

We have continued to focus on maintaining our healthy inventory position while increasing our efforts to procure more used units directly from consumers as trade-ins on vehicle sales have been off approximately 50% compared to our historical averages. As of today, our new inventory is comprised of 26% model year 2025 units and 69% model year 2024 units, with less than 140 2023 units remaining. Also of note, over 75% of our inventory is towable product, up from 70% at the same time last year."

Commenting on operational changes since the end of the second quarter, John stated, "Given the current unit sales volume, we have implemented further cost reduction actions in August that should be substantially complete by the end of September. We anticipate these decisions will save approximately $25 million annually. We have also closed our Waller, Texas dealership, and consolidated our retail operations from two locations to one in the Surprise, Arizona market.

While these decisions are painful, they are necessary. Despite these two store actions, we remain enthusiastic about operating the rest of our best-in-class locations and will continue to adjust our expense structure as necessary to seek to match the revenue opportunities available. We would note that we are not contemplating, nor are we in discussions with counterparties regarding strategic transactions involving significant store divestitures or business combinations at this time.

As usual, I want to thank our entire team for delivering the improvements in 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."

Total revenue for the second quarter was $238.7 million compared to $308.4 million for the same period in 2023. Total revenue for the six months ended June 30, 2024 was $509.3 million compared to $604.0 million for the same period in 2023.

Net loss for the second quarter was $44.2 million compared to net income of $3.6 million for the same period in 2023. Adjusted net loss, a non-GAAP measure, was $18.4 million compared to adjusted net income of $3.9 million for the same period in 2023. Net loss per diluted share was $3.22 compared to net income per diluted share of $0.12 for the same period in 2023. Adjusted net loss per diluted share was $1.42 compared to adjusted net income per diluted share of $0.14 for the same period in 2023.

Net loss for the six months ended June 30, 2024 as $66.2 million compared to net income of $3.3 million for the same period in 2023. Adjusted net loss, a non-GAAP measure, was $46.5 million compared to adjusted net income of $5.1 million for the same period in 2023. Net loss per diluted share was $4.89 compared to net income per diluted share of $0.00 for the same period in 2023. Adjusted net loss per diluted share was $3.51 compared to adjusted net income per diluted share of $0.13 for the same period in 2023.

See Reconciliation of Non-GAAP Measures for additional details regarding our adjusted results of operations.

Balance Sheet and Strategic Update
After the end of the second quarter, we executed a temporary waiver related to our required financial covenants as of June 30, 2024. This waiver was approved by 100% of the lenders in our syndicated credit facility and provides additional runway to negotiate an amendment to the facility.

Earlier this week, we received a nonbinding commitment from the clients of Coliseum Capital Management to provide an additional $5 million in capital that will be added by increasing the mortgage loan facility we established in December 2023. The terms of the incremental advance are substantially similar to the terms of the existing mortgage loan facility and require no additional collateral to be added to the pool. In connection with the incremental advance, it is contemplated that Lazydays will issue warrants to clients of Coliseum Capital Management to purchase 666,667 shares of common stock at a price of $5.25 per share, subject to certain adjustments.

The special committee of independent directors established by our board of directors was advised by Stoel Rives LLP. Upon review, the special committee unanimously approved the nonbinding commitment to increase to the size of the mortgage loan facility and related warrant issuance.

Additionally, the special committee continues to seek sources of incremental capital from investors and has engaged Miller Buckfire, a Stifel company, to assist in the process. While we remain open to other potential transactions that are in the best interest of our shareholders, at the present time we have determined the most prudent course of action is to focus on strategic financing so that we maintain scale and gain additional flexibility to operate the attractive platform of dealership assets in our portfolio.

As a result of the upcoming expiration of the temporary waiver to our credit facility, we have presented our long-term debt in current portion as of June 30, 2024. We note that to date our lenders have not accelerated any amounts due or made any repayment demands beyond routine amounts required in the normal course of business.

Kelly Porter, Chief Financial Officer, stated, "We appreciate the continued flexibility from our syndicated lenders, as well as the increased support we received from Coliseum. We believe we have adequate liquidity to continue to navigate the current macroeconomic environment."

Conference Call Information
We have scheduled a conference call at 8:30 AM Eastern Time on Friday, August 16, 2024  that will also be broadcast live over the internet.

The conference call may be accessed by telephone at (877) 407-8029 / +1 (201) 689-8029. To listen live on our website or for replay, visit https://www.lazydays.com/investor-relations.

About Lazydays
Lazydays has been a prominent player in the RV industry since our inception in 1976, earning a stellar reputation for delivering exceptional RV sales, service, and ownership experiences. Our commitment to excellence has led to enduring relationships with RVers and their families who rely on us for all of their RV needs.

With a strategic approach to rapid expansion, we are growing our network through both acquisitions and new builds. Our wide selection of RV brands from top manufacturers, state-of-the-art service facilities, and an extensive range of accessories and parts ensure that Lazydays is the go-to destination for RV enthusiasts seeking everything they need for their journeys on the road. Whether you're a seasoned RVer or just starting your adventure, our dedicated team is here to provide outstanding support and guidance, making your RV lifestyle truly extraordinary.

Lazydays is a publicly listed company on the Nasdaq stock exchange under the ticker "GORV."

Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future financing transactions and business strategy, and often contain words such as "project," "outlook," "expect," "anticipate," "intend," "plan," "believe," "estimate," "may," "seek," "would," "should," "likely," "goal," "strategy," "future," "maintain," "continue," "remain," "target" or "will" and similar references to future periods. Examples of forward-looking statements in this press release include, among others, statements regarding:

  • Our efforts to procure more used units;
  • Full year 2024 results, including anticipated cost savings;
  • Our recent history of losses and our ability to continue as a going concern;
  • The earnings power of our store base, and our unlocking of its full earnings potential;
  • Our ability to generate additional sources of financing; and
  • Our foundation to navigate the current macroeconomic environment.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events that depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this press release. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation, future economic and financial conditions (both nationally and locally), changes in customer demand, our relationship with, and the financial and operational stability of, vehicle manufacturers and other suppliers, risks associated with our indebtedness (including our ability to obtain further waivers or amendments to credit agreements, the actions or inactions of our lenders, available borrowing capacity, our compliance with financial covenants and our ability to refinance or repay indebtedness on terms acceptable to us), acts of God or other incidents which may adversely impact our operations and financial performance, government regulations, legislation and others set forth throughout under the headers "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" and in the notes to our financial statements, in our most recent Quarterly Report on Form 10-Q, Annual Report on Form 10-Kand from time to time in our other filings with the SEC. We urge you to carefully consider this information and not place undue reliance on forward-looking statements. We undertake no duty to update our forward-looking statements, including our earnings outlook, which are made as of the date of this release.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures such as EBITDA, adjusted cash flow from operations, adjusted costs applicable to revenue, adjusted net income (loss), adjusted net income (loss) per diluted share, adjusted income (loss) before income taxes, adjusted SG&A, and adjusted income (loss) from operations. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. As a result, we review any non-GAAP financial measures in connection with a review of the most directly comparable measures calculated in accordance with GAAP. We caution you not to place undue reliance on such non-GAAP measures, and also to consider them with the most directly comparable GAAP measures. We present cash flows from operations in the following tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.

In addition, we have not reconciled our fiscal year 2024 EBITDA or adjusted operational cash flow expectations.  These are provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable effort because of the unpredictability of the amounts and timing of events affecting the items we exclude from non-GAAP measures.

Contact:
investors@lazydays.com

 

Results of Operations



Three Months Ended June 30,

Variance

(In thousands except share and per share amounts)

2024


2023

%

Revenues





New vehicle retail

$            143,333


$            182,752

(21.6) %

Pre-owned vehicle retail

60,908


90,991

(33.1) %

Vehicle wholesale

3,268


1,716

NM  

Finance and insurance

16,041


17,742

(9.6) %

Service, body and parts and other

15,144


15,179

(0.2) %

Total revenues

238,694


308,380

(22.6) %

Cost applicable to revenues





New vehicle retail

130,138


158,144

(17.7) %

Pre-owned vehicle retail

49,446


72,425

(31.7) %

Vehicle wholesale

3,597


1,685

NM  

Finance and insurance

644


810

(20.5) %

Service, body and parts and other

7,150


7,517

(4.9) %

LIFO

315


76

NM  

Total cost applicable to revenues

191,290


240,657

(20.5) %

Gross profit

47,404


67,723

(30.0) %

Depreciation and amortization

4,956


4,459

11.1 %

Selling, general, and administrative expenses

50,966


50,480

1.0 %

(Loss) income from operations

(8,518)


12,784

(166.6) %

Other income (expense):





Floor plan interest expense

(5,708)


(5,835)

(2.2) %

Other interest expense

(5,837)


(2,083)

180.2 %

Change in fair value of warrant liabilities

(337)


NM  

Total other expense, net

(11,882)


(7,918)

50.1 %

(Loss) income before income taxes

(20,400)


4,866

NM  

Income tax expense

(23,821)


(1,306)

1,724.0 %

Net (loss) income

(44,221)


3,560

NM  

Dividends on Series A Convertible Preferred Stock

(2,031)


(1,196)

69.8 %

Net (loss) income and comprehensive (loss) income attributable to
common stock and participating securities

$             (46,252)


$                 2,364

NM  






(Loss) income per share:





Basic

$                 (3.22)


$                   0.12

NM  

Diluted

$                 (3.22)


$                   0.12

NM  

Weighted average shares used for EPS calculations:





Basic

14,374,897


14,181,659


Diluted

14,374,897


14,292,064


 

*NM - not meaningful

 






Six Months Ended June 30,

Variance


(In thousands except share and per share amounts)

2024


2023

%


Revenues






New vehicle retail

$            296,024


$            359,499

(17.7) %


Pre-owned vehicle retail

140,484


175,766

(20.1) %


Vehicle wholesale

9,517


3,424

NM  


Finance and insurance

34,370


34,623

(0.7) %


Service, body and parts and other

28,885


30,724

(6.0) %


Total revenues

509,280


604,036

(15.7) %


Cost applicable to revenues






New vehicle retail

277,193


311,475

(11.0) %


Pre-owned vehicle retail

119,645


139,953

(14.5) %


Vehicle wholesale

12,057


3,406

NM  


Finance and insurance

1,337


1,503

(11.0) %


Service, body and parts and other

13,437


14,698

(8.6) %


LIFO

441


1,387

(68.2) %


Total cost applicable to revenues

424,110


472,422

(10.2) %


Gross profit

85,170


131,614

(35.3) %


Depreciation and amortization

10,417


8,862

17.5 %


Selling, general, and administrative expenses

99,852


104,012

(4.0) %


(Loss) income from operations

(25,099)


18,740

(233.9) %


Other income (expense):






Floor plan interest expense

(13,384)


(11,366)

17.8 %


Other interest expense

(10,360)


(3,783)

173.9 %


Change in fair value of warrant liabilities

(337)


856

(139.4) %


Total other expense, net

(24,081)


(14,293)

68.5 %


(Loss) income before income taxes

(49,180)


4,447

NM  


Income tax expense

(17,021)


(1,163)

NM  


Net (loss) income

(66,201)


3,284

NM  


Dividends on Series A Convertible Preferred Stock

(4,015)


(2,380)

68.7 %


Net (loss) income and comprehensive (loss) income attributable to
common stock and participating securities

$            (70,216)


$                    904

NM  








(Loss) income per share:






Basic

$                 (4.89)


$                   0.05

NM  


Diluted

$                 (4.89)


$                      —

NM  


Weighted average shares used for EPS calculations:






Basic

14,371,787


13,066,607



Diluted

14,371,787


13,188,135













*NM - not meaningful










 

Total Results Summary



Three Months Ended June 30,

Variance



2024


2023


Gross profit margins






New vehicle retail

9.2 %


13.5 %

(430)

bps

Pre-owned vehicle retail

18.8 %


20.4 %

(160)

bps

Vehicle wholesale

(10.1) %


1.8 %

NM 


Finance and insurance

96.0 %


95.4 %

60

bps

Service, body and parts and other

52.8 %


50.5 %

230

bps

Total gross profit margin

19.9 %


22.0 %

(210)

bps

Total gross profit margin (excluding LIFO)

20.0 %


22.0 %

(200)

bps







Retail units sold






New vehicle retail

2,036


1,979

2.9 %


Pre-owned vehicle retail

1,149


1,388

(17.2) %


Total retail units sold

3,185


3,367

(5.4) %








Average selling price per retail unit






New vehicle retail

$           70,458


$           92,346

(23.7) %


Pre-owned vehicle retail

53,009


65,555

(19.1) %








Average gross profit per retail unit (excluding LIFO)






New vehicle retail

$             6,412


$           12,552

(48.9) %


Pre-owned vehicle retail

9,976


13,461

(25.9) %


Finance and insurance

5,084


5,029

1.1 %








Revenue mix






New vehicle retail

60.0 %


59.3 %



Pre-owned vehicle retail

25.5 %


29.5 %



Vehicle wholesale

1.4 %


0.6 %



Finance and insurance

6.7 %


5.8 %



Service, body and parts and other

6.3 %


4.8 %




100.0 %


100.0 %









Gross profit mix






New vehicle retail

27.8 %


36.3 %



Pre-owned vehicle retail

24.2 %


27.4 %



Vehicle wholesale

(0.7) %


— %



Finance and insurance

32.5 %


25.0 %



Service, body and parts and other

16.9 %


11.4 %



LIFO

(0.7) %


(0.1) %




100.0 %


100.0 %





*NM - not meaningful



 


Six Months Ended June 30,

Variance



2024


2023


Gross profit margins






New vehicle retail

6.4 %


13.4 %

(700)

bps

Pre-owned vehicle retail

14.8 %


20.4 %

(560)

bps

Vehicle wholesale

(26.7) %


0.5 %

NM 


Finance and insurance

96.1 %


95.7 %

40

bps

Service, body and parts and other

53.5 %


52.2 %

130

bps

Total gross profit margin

16.7 %


21.8 %

(510)

bps

Total gross profit margin (excluding LIFO)

16.8 %


22.0 %

(520)

bps







Retail units sold






New vehicle retail

4,091


3,959

3.3 %


Pre-owned vehicle retail

2,616


2,692

(2.8) %


Total retail units sold

6,707


6,651

0.8 %








Average selling price per retail unit






New vehicle retail

$           72,389


$           90,806

(20.3) %


Pre-owned vehicle retail

53,702


65,292

(17.8) %








Average gross profit per retail unit (excluding LIFO)






New vehicle retail

$             4,569


$           12,189

(62.5) %


Pre-owned vehicle retail

7,966


13,347

(40.3) %


Finance and insurance

5,044


4,980

1.3 %








Revenue mix






New vehicle retail

58.1 %


59.5 %



Pre-owned vehicle retail

27.6 %


29.1 %



Vehicle wholesale

1.9 %


0.6 %



Finance and insurance

6.7 %


5.7 %



Service, body and parts and other

5.7 %


5.1 %




100.0 %


100.0 %









Gross profit mix






New vehicle retail

22.1 %


36.5 %



Pre-owned vehicle retail

24.5 %


27.2 %



Vehicle wholesale

(3.0) %


— %



Finance and insurance

38.8 %


25.2 %



Service, body and parts and other

18.1 %


12.2 %



LIFO

(0.5) %


(1.1) %




100.0 %


100.0 %




*NM - not meaningful

 

Other Metrics



Adjusted


As Reported


Three Months Ended June 30,


Three Months Ended June 30,


2024


2023


2024


2023

SG&A as a % of revenue

20.9 %


16.2 %


21.4 %


16.4 %

SG&A as % of gross profit, excluding LIFO

104.5 %


73.7 %


106.8 %


74.5 %

(Loss) income from operations as a % of revenue

(3.0) %


4.3 %


(3.6) %


4.1 %

(Loss) income from operations as a % of gross profit, excluding LIFO

(14.9) %


19.7 %


(17.9) %


18.9 %

(Loss) income before income taxes as % of revenue

(7.8) %


1.8 %


(8.5) %


1.6 %

Net (loss) income as a % of revenue

(7.7) %


1.3 %


(18.5) %


1.2 %

 


Adjusted


As Reported


Six Months Ended June 30,


Six Months Ended June 30,


2024


2023


2024


2023

SG&A as a % of revenue

19.3 %


16.9 %


19.6 %


17.2 %

SG&A as % of gross profit, excluding LIFO

114.6 %


76.7 %


116.6 %


78.2 %

(Loss) income from operations as a % of revenue

(4.5) %


3.7 %


(4.9) %


3.1 %

(Loss) income from operations as a % of gross profit, excluding LIFO

(26.8) %


16.7 %


(29.3) %


14.1 %

(Loss) income before income taxes as % of revenue

(9.2) %


1.2 %


(9.7) %


0.7 %

Net (loss) income as a % of revenue

(9.1) %


0.8 %


(13.0) %


0.5 %

 

Other Highlights



June 30, 2024


December 31, 2023

Store Count




Dealerships

25


24





Days Supply*




New vehicle inventory

203


380

Pre-owned vehicle inventory

91


132

*Days supply calculated based on current inventory levels and a 90-day historical average cost of sales level.

 

Financial Covenants



Requirement


June 30, 2024

Minimum liquidity

$31,000,000


$41,370,694

 

Same-Store Results Summary



Three Months Ended June 30,


Variance


($ in thousands, except per vehicle data)

2024


2023



Revenues







New vehicle retail

$          120,041


$          172,156


(30.3) %


Pre-owned vehicle retail

50,041


86,900


(42.4) %


Vehicle wholesale

2,857


1,591


79.6 %


Finance and insurance

13,741


16,930


(18.8) %


Service, body and parts and other

12,617


14,371


(12.2) %


Total revenues

$          199,297


$          291,948


(31.7) %









Gross profit







New vehicle retail

$            10,194


$            23,250


(56.2) %


Pre-owned vehicle retail

9,077


17,771


(48.9) %


Vehicle wholesale

(312)


31


NM  


Finance and insurance

13,187


16,146


(18.3) %


Service, body and parts and other

6,530


6,883


(5.1) %


LIFO

(316)


(76)


315.8 %


Total gross profit

$            38,360


$            64,005


(40.1) %









Gross profit margins







New vehicle retail

8.5 %


13.5 %


(500)

bps

Pre-owned vehicle retail

18.1 %


20.4 %


(230)

bps

Vehicle wholesale

(10.9) %


1.9 %


NM 


Finance and insurance

96.0 %


95.4 %


60

bps

Service, body and parts and other

51.8 %


47.9 %


390

bps

Total gross profit margin

19.2 %


21.9 %


(270)

bps

Total gross profit margin (excluding LIFO)

19.4 %


21.9 %


(250)

bps








Retail units sold







New vehicle retail

1,556


1,834


(15.2) %


Pre-owned vehicle retail

901


1,300


(30.7) %


Total retail units sold

2,457


3,134


(21.6) %









Average selling price per retail unit







New vehicle retail

$            77,147


$            93,580


(17.6) %


Pre-owned vehicle retail

55,539


66,342


(16.3) %









Average gross profit per retail unit (excluding LIFO)






New vehicle retail

$              6,552


$            12,744


(48.6) %


Pre-owned vehicle retail

10,075


13,566


(25.7) %


Finance and insurance

5,367


5,020


6.9 %









 *NM - not meaningful


 


Six Months Ended June 30,


Variance


(In thousands, except per vehicle data)

2024


2023



Revenues







New vehicle retail

$          250,866


$          341,930


(26.6) %


Pre-owned vehicle retail

116,756


168,425


(30.7) %


Vehicle wholesale

7,903


3,249


143.2 %


Finance and insurance

29,280


33,283


(12.0) %


Service, body and parts and other

24,482


29,136


(16.0) %


Total revenues

$          429,287


$          576,023


(25.5) %









Gross profit







New vehicle retail

$            15,091


$            45,730


(67.0) %


Pre-owned vehicle retail

16,806


34,328


(51.0) %


Vehicle wholesale

(1,838)


15


NM  


Finance and insurance

28,120


31,827


(11.6) %


Service, body and parts and other

13,039


14,882


(12.4) %


LIFO

(441)


(1,387)


(68.2) %


Total gross profit

$            70,777


$          125,395


(43.6) %









Gross profit margins







New vehicle retail

6.0 %


13.4 %


(740)

bps

Pre-owned vehicle retail

14.4 %


20.4 %


(600)

bps

Vehicle wholesale

(23.3) %


0.5 %


NM 


Finance and insurance

96.0 %


95.6 %


40

bps

Service, body and parts and other

53.3 %


51.1 %


220

bps

Total gross profit margin

16.5 %


21.8 %


(530)

bps

Total gross profit margin (excluding LIFO)

16.6 %


22.0 %


(540)

bps








Retail units sold







New vehicle retail

3,192


3,707


(13.9) %


Pre-owned vehicle retail

2,092


2,530


(17.3) %


Total retail units sold

5,284


6,237


(15.3) %









Average selling price per retail unit







New vehicle retail

$            78,592


$            92,406


(14.9) %


Pre-owned vehicle retail

55,811


66,016


(15.5) %









Average gross profit per retail unit (excluding LIFO)






New vehicle retail

$              4,728


$            12,438


(62.0) %


Pre-owned vehicle retail

8,033


13,465


(40.3) %


Finance and insurance

5,322


5,013


6.2 %









 *NM - not meaningful

 

Condensed Consolidated Balance Sheets


(In thousands)

June 30, 2024


December 31, 2023 

Current assets




Cash

$                     42,022


$                     58,085

Receivables, net of allowance for doubtful accounts

28,806


22,694

Inventories

314,382


456,087

Income tax receivable

6,675


7,416

Prepaid expenses and other

4,907


2,614

Total current assets

396,792


546,896





Long-term assets




Property and equipment, net

272,297


265,726

Operating lease assets

23,629


26,377

Intangible assets, net

76,477


80,546

Other assets

3,173


2,750

Deferred income tax asset


15,444

Total assets

$                   772,368


$                   937,739





Current liabilities




Floor plan notes payable

$                   330,967


$                   446,783

Revolving line of credit, current portion

44,500


Other current liabilities

131,083


53,194

Total current liabilities

506,550


499,977





Long-term liabilities




Financing liability, non-current portion, net

91,509


91,401

Revolving line of credit, non-current portion


49,500

Long-term debt, non-current portion, net


28,075

Related party debt, non-current portion, net


33,354

Warrant liabilities

5,244


Other long-term liabilities

20,859


22,242

Total liabilities

624,162


724,549





Series A Convertible Preferred Stock

60,208


56,193

Stockholders' Equity

87,998


156,997

Total liabilities and stockholders' equity

$                   772,368


$                   937,739

 

Future maturities of long-term debt are as follows:

(In thousands)


Remainder of 2024

$                             5,578

2025

771

2026

45,326

2027

886

2028

950

Thereafter

20,358

Total

$                           73,869


The above schedule reflects contractual maturities, but for financial reporting, long-term debt, and related party debt have
been classified as current as described in Note 2 and Note 7 to the Condensed Consolidated Financial Statements.

 

Condensed Consolidated Statements of Cash Flows



Six Months Ended June 30,

(In thousands)

2024


2023

Operating Activities




Net (loss) income

$             (66,201)


$                 3,284

Adjustments to reconcile net (loss) income to net cash provided by operating activities:




Stock-based compensation

1,104


1,639

Bad debt expense

76


9

Depreciation and amortization of property and equipment

6,346


5,195

Amortization of intangible assets

4,070


3,667

Amortization of debt discount

506


655

Non-cash operating lease (benefit) expense

(217)


93

Gain on sale of property and equipment

(2,950)


Deferred income taxes

16,375


(147)

Change in fair value of warrant liabilities

337


(856)

Impairment charges


538

Changes in operating assets and liabilities:




Receivables

(6,188)


(3,424)

Inventories

141,705


(4,346)

Prepaid expenses and other

(2,293)


(2,712)

Income tax receivable/payable

744


1,239

Other assets

(424)


(390)

Accounts payable

1,920


3,744

Accrued expenses and other current liabilities

6,405


2,517

Total adjustments

167,516


7,421

Net cash provided by operating activities

$            101,315


$              10,705






Six Months Ended June 30,

(In thousands)

2024


2023

Net cash provided by operating activities, as reported

$            101,315


$              10,705

Net repayments on floor plan notes payable

(114,824)


(44,293)

Minus borrowings on floor plan notes payable associated with acquired new inventory


(4,271)

Plus net increase to floor plan offset account


40,000

Net cash (used in) provided by operating activities, as adjusted

$             (13,509)


$                2,141

 

Reconciliation of Non-GAAP Measures



Three months ended June 30, 2024

($ in thousands, except per share amounts)

As reported

Loss on
change in
fair value of
warrant
liabilities

LIFO

Transaction
costs

Severance
and
transition
costs

Deferred
Tax
Valuation
Allowance

Adjusted

Costs applicable to revenue

$    191,290

$              —

$          (315)

$              —

$              —

$              —

$    190,975

Selling, general and administrative expenses

50,966

(1,073)

(7)

49,886

(Loss) income from operations

(8,518)

315

1,073

7

(7,123)

Change in fair value of warrant liabilities

(337)

337

(Loss) income before income taxes

(20,400)

337

315

1,073

7

(18,668)

Income tax (expense) benefit

(23,821)

(5)

(5)

(16)

24,096

249

Net (loss) income

(44,221)

332

310

1,057

7

24,096

(18,419)

Dividends on Series A Convertible Preferred Stock

(2,031)

(2,031)

Net (loss) income and comprehensive (loss) income attributable to
common stock and participating securities

$     (46,252)

$            332

$            310

$         1,057

$                7

$      24,096

$     (20,450)









Diluted loss per share

$         (3.22)






$         (1.42)

Shares used for diluted calculation

14,374,897






14,374,897

 


Three months ended June 30, 2023

($ in thousands, except per share amounts)

As reported

LIFO

Transaction costs

Storm Reserve

Adjusted

Costs applicable to revenue

$              240,657

$                      (76)

$                        —

$                        —

$              240,581

Selling, general and administrative expenses

50,480

(209)

(300)

49,971

Income from operations

12,784

76

209

300

13,369

Income before income taxes

4,866

76

209

300

5,451

Income tax expense

(1,306)

(48)

(51)

(106)

(1,511)

Net income

3,560

28

158

194

3,940

Dividends on Series A Convertible Preferred Stock

(1,196)

(1,196)

Net income and comprehensive income attributable to common stock
and participating securities

$                  2,364

$                        28

$                      158

$                      194

$                  2,744







Diluted earnings per share

$                     0.12




$                     0.14

Shares used for diluted calculation

14,292,064




14,292,064

 


Six months ended June 30, 2024

($ in thousands, except per share amounts)

As reported

Loss on
change in
fair value of
warrant
liabilities

LIFO

Transaction
costs

Severance
and
transition
costs

Deferred Tax
Valuation
Allowance

Adjusted

Costs applicable to revenue

$     424,110

$               —

$           (441)

$               —

$               —

$               —

$     423,669

Selling, general and administrative expenses

99,852

(1,630)

(99)

98,123

(Loss) income from operations

(25,099)

441

1,630

99

(22,929)

Change in fair value of warrant liabilities

(337)

337

(Loss) income before income taxes

(49,180)

337

441

1,630

99

(46,673)

Income tax (expense) benefit

(17,021)

(3)

(5)

(17)

(1)

17,261

214

Net (loss) income

(66,201)

334

436

1,613

98

17,261

(46,459)

Dividends on Series A Convertible Preferred Stock

(4,015)

(4,015)

Net (loss) income and comprehensive (loss) income attributable to  
common stock and participating securities

$      (70,216)

$             334

$             436

$          1,613

$               98

$       17,261

$      (50,474)









Diluted loss per share

$          (4.89)






$          (3.51)

Shares used for diluted calculation

14,371,787






14,371,787

 


Six months ended June 30, 2023

($ in thousands, except per share amounts)

As reported

Gain on
change in
fair value of
warrant
liabilities

LIFO

Transaction costs

Severance
and
transition
costs

Impairment
charge

Storm
Reserve

Adjusted

Costs applicable to revenue

$   472,422

$             —

$      (1,387)

$             —

$             —

$             —

$             —

$   471,035

Selling, general and administrative expenses

104,012

(471)

(653)

(629)

(300)

101,959

Income from operations

18,740

1,387

471

653

629

300

22,180

Gain on change in fair value of warrant liabilities

856

(856)

Income before income taxes

4,447

(856)

1,387

471

653

629

300

7,031

Income tax expense

(1,163)

(296)

(101)

(124)

(119)

(106)

(1,909)

Net income (loss)

3,284

(856)

1,091

370

529

510

194

5,122

Dividends on Series A Convertible Preferred Stock

(2,380)

(2,380)

Net income (loss) and comprehensive income (loss)
attributable to common stock and participating securities  

$           904

$         (856)

$        1,091

$           370

$           529

$           510

$           194

$        2,742










Diluted income per share

$             —







$          0.13

Shares used for diluted calculation

13,188,135







13,188,135

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/lazydays-reports-second-quarter-2024-results-302224068.html

SOURCE Lazydays

FAQ

What was Lazydays' (GORV) revenue for Q2 2024?

Lazydays (GORV) reported total revenue of $238.7 million for Q2 2024, down from $308.4 million in the same period of 2023.

How much did Lazydays (GORV) lose in Q2 2024?

Lazydays (GORV) reported a net loss of $44.2 million for Q2 2024, compared to a net income of $3.6 million in Q2 2023.

What cost-saving measures has Lazydays (GORV) implemented in 2024?

Lazydays (GORV) implemented cost reduction actions in August 2024, expected to save approximately $25 million annually. They also closed their Waller, Texas dealership and consolidated operations in Surprise, Arizona.

How much additional capital did Lazydays (GORV) secure in 2024?

Lazydays (GORV) received a nonbinding commitment for an additional $5 million in capital to be added to their mortgage loan facility established in December 2023.

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