Lazydays Holdings, Inc. Reports Record Second Quarter 2021 Financial Results

Rhea-AI Summary

Lazydays Holdings, Inc. (LAZY) reported a strong second quarter ending June 30, 2021, with a net income of $25.3 million, marking an increase of $20 million year-over-year. Revenue reached $322.8 million, a 51% rise from 2020, driven by $290.2 million from RV sales, reflecting a 52% increase. Gross profit, excluding LIFO adjustments, was $86.4 million (up 98%), and adjusted EBITDA was $41.3 million (up 26.4 million). Cash reserves improved to $104.3 million. The results were aided by strong consumer demand despite increased SG&A expenses due to recent acquisitions.

Positive

• Net income increased to $25.3 million, up $20 million from 2020.
• Revenue grew by 51% to $322.8 million, a record quarterly performance.
• RV sales revenue rose by 52% to $290.2 million.
• Gross profit increased by 98% to $86.4 million, with gross margin up to 26.8%.
• Adjusted EBITDA reached $41.3 million, improving EBITDA margin to 12.8%.
• Cash reserves rose by $40.8 million to $104.3 million.

Negative

• SG&A expenses rose by $16.5 million, attributed to overhead from acquired dealerships and increased performance wages.
• Net income included a one-time $6.1 million benefit for PPP loan forgiveness, indicating reliance on external financial support.

TAMPA, Fla., Aug. 5, 2021 /PRNewswire/ -- Lazydays Holdings, Inc. ("Lazydays" or the "Company") (NasdaqCM: LAZY) announced  financial results for the second quarter ended June 30, 2021.  Net Income for the quarter was $25.3 million, up $20.0 million compared to second quarter 2020.  Second quarter revenue of $322.8 million, and EBITDA of $41.3 million, were all-time quarterly records.

Second Quarter Financial Results and Highlights:

• Revenues for the second quarter were $322.8 million; up $108.8 million, or 51%, versus 2020. Revenue from sales of Recreational Vehicles ("RVs") was $290.2 million for the second quarter, up $98.7 million, or 52%, versus 2020. RV unit sales excluding wholesale units, were 4,208 for the quarter, up 1,258 units, or 43% versus 2020. New and preowned RV sales revenues were $201.6 million and $88.7 million for the quarter, up 55.8% and 42.7% respectively compared to 2020.
  
  
• Gross profit, excluding last-in-first-out ("LIFO") adjustments, was $86.4 million, up $42.7 million, or 98%, versus 2020. Gross margin excluding LIFO adjustments increased between the two periods, to 26.8% in 2021 from 20.4% in 2020. This margin increase was driven by increased RV sales margins in a market with strong consumer demand and constrained inventory. Gross profit for the quarter including LIFO adjustments was $86.2 million; up $42.3 million, or 96%, versus 2020. This gross profit comparison reflects a $0.4 million net increase in LIFO adjustments between the two periods.
  
  
• Excluding transaction costs, stock-based compensation, and depreciation and amortization, Selling, General and Administrative expense ("SG&A") for the second quarter was $44.8 million, up $16.5 million compared to the prior year. The increase in SG&A expenses was related to overhead associated with the Phoenix dealership acquired in May 2020, the Elkhart dealership acquired in October 2020, the Burns Harbor dealership acquired in December 2020 and the Louisville, Tennessee dealership acquired in March 2021. In addition, performance wages increased across the business as a result of the increased RV sales and margins for the quarter. Depreciation and amortization increased $0.7 million, and transaction costs increased $0.4 million compared to the prior year.
  
  
• Adjusted EBITDA, a non-GAAP financial measure, was $41.3 million for the second quarter, up $26.4 million compared to 2020. EBITDA as a percentage of revenue improved to 12.8% from 7.0%.
  
  
• As of June 30, 2021, cash was $104.3 million up $40.8 million from December 31, 2020. The increase includes the impact of cash provided by operating activities of $83.7 million offset by cash paid for purchases of property and equipment and acquisitions of $13.3 million and cash used in financing activities of $29.6 million.
  
  
• The reported second quarter $25.3 million net income includes a one-time $6.1 million benefit for PPP loan forgiveness, offset by a $6.8 million non-cash expense recognizing a change in the fair value of warrant liabilities.

Conference Call Information:

The Company has scheduled a conference call at 10:00 AM Eastern Time on August 5, 2021 that will also be broadcast live over the internet. The call can be accessed as follows:

Via online registration at: http://www.directeventreg.com/registration/event/8444906 or via webcast by clicking the link. 

A live audio webcast of the conference call will be available online at https://www.lazydays.com/investor-relations.

A telephonic replay of the conference call will be available until August 12, 2021 and may be accessed by calling 1-800-585-8367 or 1-416-621-4642 with a conference ID number of 8444906. The webcast will be archived in the Investor Relations section of the Company's website.

ABOUT LAZYDAYS RV
As an iconic brand in the RV industry, Lazydays, The RV Authority, consistently provides the best RV sales, service, and ownership experience, which is why RVers and their families become Customers for Life. Lazydays continues to add locations at a rapid pace as it executes its geographic expansion strategy that includes both acquisitions and greenfields.

Since 1976, Lazydays RV has built a reputation for providing an outstanding customer experience with exceptional service excellence and unparalleled product expertise, along with being a preferred place to rest and recharge with other RVers. By offering the largest selection of RV brands from the nation's leading manufacturers, state-of-the-art service facilities, and thousands of accessories and hard-to-find parts, Lazydays RV provides everything RVers need and want.

Lazydays Holdings, Inc. is a publicly listed company on the Nasdaq stock exchange under the ticker "LAZY."

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 regarding Lazydays' expectations for future operating results, its expectations regarding the impact of its acquisition of its recently acquired dealership in Phoenix, Arizona, Elkhart, Indiana,  Burns Harbor, Indiana, and Louisville, Tennessee and its greenfield start-ups near Houston, Texas and 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 continuing 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.

Results of Operations for the Second Quarter Ended June 30, 2021 and 2020

			For the Three Months Ended
			June 30, 2021			June 30, 2020
						(Restated)
Revenues
New and pre-owned vehicles			$               290,213			$               191,505
Other			32,578			22,456
	Total revenues		322,791			213,961
Cost applicable to revenues (excluding depreciation and amortization shown below)
New and pre-owned vehicles (including adjustments to the
LIFO reserve of $177 and ($240), respectively)			229,575			164,377
Other			7,002			5,631
	Total cost applicable to revenue		236,577			170,008
Transaction costs			475			45
Depreciation and amortization			3,334			2,671
Stock-based compensation			311			340
Selling, general, and administrative expenses			44,792			28,275
	Income from operations		37,302			12,622
Other income/expenses
PPP loan forgiveness			6,148			-
Interest expense			(1,861)			(2,018)
Change in fair value of warrant liabilities			(6,784)			(2,758)
Inducement Loss on Warrant Conversion			-			-
	Total other expense		(2,497)			(4,776)
Income before income tax expense			34,805			7,846
	Income tax expense		(9,496)			(2,536)
	Net income		$                 25,309			$                   5,310
	Dividends on Series A Convertible Preferred Stock		(1,197)			(1,684)
	Net income attributable to common stock and participating securities		$                 24,112			$                   3,626
EPS:
Basic			$                     1.69			$                     0.25
Diluted			$                     1.21			$                     0.25
Weighted average shares outstanding:
Basic			10,977,852			9,715,677
Diluted			20,915,421			9,715,677
See the accompanying notes to the unaudited condensed consolidated financial statements

 

 

Balance Sheets as of June 30, 2021 and December 31, 2020

			As of		As of
			June 30, 2021		December 31, 2020
			(Unaudited)		(Restated)
ASSETS
Current assets
Cash			$          104,328		$                       63,512
Receivables, net of allowance for doubtful accounts of $659     at June 30, 2021 and December 31, 2020			38,233		19,464
Inventories			87,256		116,267
Income tax receivable			-		1,898
Prepaid expenses and other			4,115		2,740
		Total current assets	233,932		203,881
Property and equipment, net			111,925		106,320
Operating lease assets			14,425		15,472
Goodwill			47,919		45,095
Intangible assets, net			71,388		72,757
Other assets			497		473
		Total assets	$          480,086		$                     443,998
See the accompanying notes to the unaudited condensed consolidated financial statements
			As of		As of
			June 30, 2021		December 31, 2020
			(Unaudited)		(Restated)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable, accrued expenses and other current liabilities			$            55,698		$                       38,781
Income taxes payable			5,084		-
Dividends payable			1,197		1,210
Floor plan notes payable, net of debt discount			63,913		105,399
Financing liability, current portion			2,098		1,462
Long-term debt, current portion			20,957		24,161
Operating lease liability, current portion			2,421		3,164
		Total current liabilities	151,368		174,177
Long term liabilities
Financing liability, non-current portion, net of debt discount			85,851		78,634
Long term debt, non-current portion, net of debt discount			1,712		8,445
Operating lease liability, non-current portion			11,947		12,056
Deferred income tax liability			15,091		15,091
Warrant liabilities			17,652		15,096
		Total liabilities	283,621		303,499
Commitments and Contingencies
Series A Convertible Preferred Stock; 600,000 shares, designated,			54,983		54,983
issued, and outstanding as of June 30, 2021 and December 31, 2020;
liquidation preference of $60,000 as of June 30, 2021
and December 31, 2020, respectively
Stockholders' Equity
Preferred Stock, $0.0001 par value; 5,000,000 shares authorized;			-		-
Common stock, $0.0001par value; 100,000,000 shares authorized;
10,854,477 and 9,656,041 shares issued and 10,713,178 and 9,514,742
outstanding at June 30, 2021 and December 31, 2020, respectively			-		-
Additional paid-in capital			93,039		71,226
Treasury Stock, at cost, 141,299shares at June 30, 2021 and December 31, 2020, respectively			(499)		(499)
Retained earnings			48,942		14,789
		Total stockholders' equity	141,482		85,516
		Total liabilities and stockholders' equity	$          480,086		$                     443,998

 

Non-GAAP Financial Measures

We use certain non-GAAP financial measures, such as EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin to enable us to analyze our performance and financial condition. We utilize these financial measures to manage our business on a day-to-day basis and believe that they are useful measures of performance as they reflect certain operating drivers of the business, such as sales growth, operating costs, selling and administrative expense and other operating income and expense. We believe that these supplemental measures are commonly used by analysts, investors and other interested parties to evaluate companies in our industry. We believe these non-GAAP measures provide expanded insight of the underlying operating results and trends and overall understanding of our financial performance and prospects for the future. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Our use of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin may not be comparable to other companies within the industry due to different methods of calculation. We compensate for these limitations by using each of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin as only one of several measures for evaluating our business performance. In addition, capital expenditures, which impact depreciation and amortization, interest expense, and income tax expense, are reviewed separately by management. We may incur expenses in the future that are the same or similar to some of those adjusted in this presentation.

EBITDA is defined as net income excluding depreciation and amortization of property and equipment, interest expense, net, amortization of intangible assets, and income tax expense.

Adjusted EBITDA is defined 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, impairment of rental units and gain (loss) on sale of property and equipment.

Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of total revenues.

Reconciliations from Net Income per the Consolidated Statements of Income to EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin for the three months ended June 30, 2021 and 2020 are shown in the tables below.

 

			Three Months Ended June 30,
			2021		2020 (Restated)
EBITDA
Net  income			$                             25,309		$                               5,310
Interest expense, net*			1,861		2,018
Depreciation and amortization of property and equipment			2,025		1,624
Amortization of intangible assets			1,309		1,047
Income tax expense			9,496		2,536
Subtotal EBITDA			40,000		12,535
Floor plan interest			(326)		(565)
LIFO adjustment			177		(239)
Transaction costs			475		45
PPP loan forgivenesss			(6,148)		-
Loss on sale of property and equipment			-		6
Change in fair value of warrant liabilties			6,784		2,758
Inducement loss on warrant conversion			-		-
Stock-based compensation			311		340
Adjusted EBITDA			$                             41,273		$                             14,880
* Interest expense includes $1,206 and $1,178 relating to finance lease payments for the three months ended June 30, 2021 and 2020, respectively.  Depreciation on leased assets under finance leases is included in depreciation expense and included in net income.  Operating lease payments are included as rent expense and included in net income.
			Three Months Ended June 30,
			2021		2020 (Restated)
EBITDA margin
Net income margin			7.8%		2.5%
Interest expense, net			0.6%		0.9%
Depreciation and amortization of property and equipment			0.6%		0.8%
Amortization of intangible assets			0.4%		0.5%
Income tax expense			2.9%		1.2%
Subtotal EBITDA margin			12.4%		5.9%
Floor plan interest			-0.1%		-0.3%
LIFO adjustment			0.1%		-0.1%
Transaction costs			0.1%		0.0%
PPP loan forgivenesss			-1.9%		0.0%
Loss on sale of property and equipment			0.0%		0.0%
Change in fair value of warrant liabilties			2.1%		1.3%
Inducement loss on warrant conversion			0.0%		0.0%
Stock-based compensation			0.1%		0.2%
Adjusted EBITDA			12.8%		7.0%
Note:  Figures in the table may not recalculate exactly due to rounding.

 

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

 

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SOURCE Lazydays Holdings, Inc.

FAQ

What are the second quarter earnings results for Lazydays Holdings (LAZY) in 2021?

Lazydays reported a net income of $25.3 million and revenue of $322.8 million for Q2 2021.

How much did Lazydays Holdings' revenue increase in Q2 2021 compared to 2020?

Revenue increased by 51%, or $108.8 million, compared to Q2 2020.

What was the adjusted EBITDA for Lazydays Holdings in Q2 2021?

The adjusted EBITDA for Q2 2021 was $41.3 million.

What were the gross profit margins for Lazydays Holdings in Q2 2021?

Gross profit margins rose to 26.8%, compared to 20.4% in Q2 2020.

What is the cash position of Lazydays Holdings as of June 30, 2021?

As of June 30, 2021, Lazydays Holdings had cash reserves of $104.3 million.