Lazydays Holdings, Inc. Provides Preliminary Second Quarter Results

Rhea-AI Summary

Lazydays Holdings, Inc. (NasdaqCM: LAZY) announced preliminary financial results for Q2 2020, revealing a revenue increase of 30% year-over-year to $214 million, with net income of $7 million. The quarter saw a significant recovery from the COVID-19 impact, as RV unit sales rose 40% to 2,935 units compared to Q2 2019. Notably, sales improved month-over-month, with May and June showing substantial gains. The Company ended the quarter with a cash balance of $62 million, indicating a strong liquidity position. Demand remains robust as inventory levels are rising due to increased production.

Positive

• Revenue increased 30% year-over-year to $214 million.
• Net income reached $7 million for the quarter.
• RV unit sales rose 40% to 2,935 units compared to Q2 2019.
• Adjusted EBITDA increased 52% to $15.1 million.
• Cash balance at end of quarter was $62 million.

Negative

• RV unit sales decreased 11% to 636 units in April 2020 compared to April 2019.
• Total revenue declined 30% to $41 million in April 2020 versus April 2019.
• Adjusted EBITDA dropped 88% to $0.5 million in April 2020.

TAMPA, Fla., July 13, 2020 /PRNewswire/ -- Lazydays Holdings, Inc.  ("Lazydays" or the "Company") (NasdaqCM: LAZY) provided preliminary results for the quarter ending June 30, 2020. Given the unique business environment created by the COVID-19 pandemic the Company believes it is helpful to provide preliminary results, including a month-by-month breakout of preliminary key financial measures for the quarter. It is important to note that these results are preliminary, have not been subjected to a quarterly review and should be read in conjunction with the Company's quarterly report on Form 10-Q for the quarter ending June 30, 2020, which the Company expects to file in early August 2020. Preliminary Revenue for the quarter is $214 million and net income $7 million. Preliminary key metrics by month are provided below, as well as a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to net income.

April 2020 Preliminary Results

• RV unit sales decreased 11% to 636 units versus 711 units in April 2019
• Total Revenue decreased 30% to $41 million compared to $59 million in April 2019
• Adjusted EBITDA, decreased 88% to $0.5 million versus $3.9 million in April 2019
• In April, most states were still under shelter in place orders, which the Company believes significantly impacted customer demand.

May 2020 Preliminary Results

• RV unit sales increased 55% to 1,175 units versus 759 units in May 2019
• Total Revenue increased 38% to $83 million compared to $60 million in May 2019
• Adjusted EBITDA increased 98% to $7.0 million versus $3.6 million in May 2019

June 2020 Preliminary Results

• RV unit sales increased 81% to 1,124 units versus 622 units in June 2019
• Total Revenue increased 82% to $90 million compared to $50 million in June 2019
• Adjusted EBITDA increased 212% to $7.6 million versus $2.4 million in June 2019

Quarter ending June 30, 2020 Preliminary Results

• RV unit sales increased 40% to 2,935 units versus 2,092 units in the second quarter of 2019
• Total Revenue increased 30% to $214 million compared to $169 million in the second quarter of 2019
• Adjusted EBITDA increased 52% to $15.1 million versus $9.9 million in the second quarter of 2019
• The Company ended the quarter with a cash balance of $62 million
• The Company believes its inventory levels are growing again as OEMs continue to ramp up production of new RVs
• Demand in July continues to be strong

ABOUT LAZYDAYS RV
Lazydays, The RV Authority®, is an iconic brand in the RV industry. Home of the world's largest recreational dealership, based on 126 acres outside of Tampa, Florida, Lazydays has dealerships located at The Villages, Florida; Tucson and Phoenix, Arizona; Minneapolis, Minnesota; Knoxville, Tennessee; and Loveland and Denver, Colorado. Lazydays also has a dedicated Service Center location near Houston, Texas. Offering the nation's largest selection of leading RV brands, Lazydays features over 3,000 new and pre-owned RVs, more than 400 service bays and two on-site campgrounds with over 700 RV campsites. In addition, Lazydays RV Accessories & More™ stores offer thousands of accessories and hard-to-find parts at dealership locations.

Since 1976, Lazydays has built a reputation for providing an outstanding customer experience with exceptional service and product expertise, along with being a preferred place to rest and recharge with other RVers. Lazydays consistently provides the best RV purchase, service, and ownership experience, which is why RVers and their families keep returning to Lazydays year after year, calling it their "home away from home."

Lazydays Holdings, Inc. is a publicly listed company on the Nasdaq stock exchange under the ticker "LAZY." Additional information can be found here.

Forward–Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements.  Forward-looking statements describe Lazydays future plans, projections, strategies and expectations, including statements on expected customer demand, RV Unit Sales, Total Revenue, Net Income, Inventory and Adjusted EBITDA, and statements regarding Lazydays' expectations regarding the impact of its recently acquired dealership in Phoenix, Arizona, and its greenfield start-up near Nashville, Tennessee, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of Lazydays.  Actual results could differ materially from those projected due to various factors, including economic conditions generally, conditions in the credit markets and changes in interest rates, conditions in the capital markets, the global, national and local impact of the pandemic outbreak of coronavirus (COVID-19) and other factors described from time to time in Lazydays' SEC reports and filings, which are available at www.sec.gov.  Forward-looking statements contained in this news release speak only as of the date of this news release, and Lazydays undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances, unless otherwise required by law.

Disclaimer

Information in this news release is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

The preliminary results in this press release should not be read as an indication of the Company's future financial position or results of operations.  The extent and duration of the COVID-19 pandemic, and its short and long-term effects on the Company's business, financial position and results of operations is impossible to predict.

Non-GAAP Financial Measure

Adjusted EBITDA. Adjusted EBITDA is a not a U.S. Generally Accepted Accounting Principle ("GAAP") financial measure, but it is one of the primary non-GAAP measures management uses to evaluate the financial performance of the business. Adjusted EBITDA is also frequently used by analysts, investors, and other interested parties to evaluate companies in the recreational vehicle industry. The Company uses Adjusted EBITDA to supplement GAAP measures of performance as follows:

	●	as a measurement of operating performance to assist in comparing the operating performance of the Company's business on a consistent basis, and remove the impact of items not directly resulting from the Company's core operations;
	●	for planning purposes, including the preparation of the Company's internal annual operating budget and financial projections;
	●	to evaluate the performance and effectiveness of the Company's operational strategies; and
	●	to evaluate the Company's capacity to fund capital expenditures and expand the business.

The Company defines Adjusted EBITDA as net income excluding depreciation and amortization of property and equipment, non-floor plan interest expense, amortization of intangible assets, income tax expense, stock-based compensation, transaction costs and other supplemental adjustments which for the periods presented includes LIFO adjustments, severance costs and other one-time charges, and loss on sale of property and equipment. The Company believes Adjusted EBITDA, when considered along with other performance measures, is a useful measure as it reflects certain operating drivers of the business, such as sales growth, operating costs, selling and administrative expense and other operating income and expense. The Company believes Adjusted EBITDA can provide a more complete understanding of the underlying operating results and trends and an enhanced overall understanding of financial performance and prospects for the future. While Adjusted EBITDA is not a recognized measure under GAAP, management uses this financial measure to evaluate and forecast business performance. Adjusted EBITDA is not intended to be a measure of liquidity or cash flows from operations, or a measure comparable to net (loss) income as it does not take into account certain requirements such as non-recurring gains and losses which are not deemed to be a normal part of the underlying business activities.

The Company's use of Adjusted EBITDA may not be comparable to other companies within the industry. The Company compensates for these limitations by using Adjusted EBITDA as only one of several measures for evaluating business performance. In addition, capital expenditures, which impact depreciation and amortization, interest expense, and income tax expense, are reviewed separately by management. The Company's measure of Adjusted EBITDA is not necessarily comparable to similarly titled captions of other companies due to different methods of calculation.

A reconciliation of preliminary net income to preliminary EBITDA and preliminary Adjusted EBITDA for the periods presented follows:

			(Unaudited) For the month ended		Three Months Ended
			April 30, 2020		May 31, 2020		June 30, 2020		June 30, 2019
EBITDA
Net  income			$                (848)		$              4,159		$              3,885		$                               7,196
Interest expense, net			728		662		629		2,019
Depreciation and amortization of property and equipment			524		530		570		1,624
Amortization of intangible assets			349		349		349		1,047
Income tax expense (estimated)			(181)		1,458		1,652		2,929
Subtotal EBITDA			572		7,100		7,315		14,987
Floor plan interest			(244)		(180)		(141)		(565)
LIFO adjustment			0		-		240		240
Transaction costs			(86)		116		14		44
Loss on sale of property and equipment			-		-		6		6
Severance costs/Other			-		-		-		-
Stock-based compensation			218		5		117		340
Adjusted EBITDA			$                  460		$              7,041		$              7,551		$                             15,052
			(Unaudited) For the month ended		Three Months Ended
			April 30, 2019		May 31, 2019		June 30, 2019		June 30, 2019
EBITDA
Net  income			$               1,384		$              1,160		$                (686)		$                               1,858
Interest expense, net			887		873		771		2,531
Depreciation and amortization of property and equipment			558		560		569		1,687
Amortization of intangible assets			318		318		317		953
Income tax expense (estimated)			660		564		875		2,099
Subtotal EBITDA			3,807		3,475		1,846		9,128
Floor plan interest			(405)		(389)		(255)		(1,049)
LIFO adjustment					-		359		359
Transaction costs			34		26		27		87
Loss on sale of property and equipment			-		-		-		-
Severance costs/Other			-		-		272		272
Stock-based compensation			495		444		173		1,112
Adjusted EBITDA			$               3,931		$              3,556		$              2,422		$                               9,909

News Contact:
+1 (813) 204-4099
investors@lazydays.com

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SOURCE Lazydays Holdings, Inc.

FAQ

What were the preliminary Q2 2020 results for Lazydays (LAZY)?

Lazydays reported a 30% revenue increase to $214 million and net income of $7 million for Q2 2020.

How many RV units did Lazydays sell in Q2 2020?

Lazydays sold 2,935 RV units in Q2 2020, a 40% increase compared to the same quarter in 2019.

What was the Adjusted EBITDA for Lazydays in Q2 2020?

The Adjusted EBITDA for Q2 2020 was $15.1 million, reflecting a 52% increase year-over-year.

What is the cash balance of Lazydays at the end of Q2 2020?

Lazydays ended Q2 2020 with a cash balance of $62 million.

How did the pandemic impact Lazydays' sales in April 2020?

In April 2020, Lazydays experienced an 11% decline in RV unit sales and a 30% drop in total revenue compared to April 2019.