LAZYDAYS REPORTS FIRST QUARTER 2023 FINANCIAL RESULTS

Rhea-AI Summary

Lazydays (LAZY) reported a net loss of $1.5 million for Q1 2023, contrasting sharply with a net income of $27.1 million in Q1 2022. Revenue fell to $295.7 million, down from $376.2 million year-over-year. Adjusted net income was $1.2 million, compared to $28.2 million in the same period last year. The company's net loss per diluted share stood at $0.17, significantly down from a profit of $1.17 a year ago. Despite the losses, Lazydays opened a new greenfield location in Council Bluffs, Iowa, expected to generate annual revenues of $35 million, with plans for three more locations by the end of 2023. The balance sheet shows $175.1 million in liquidity, including $41 million in cash and $20 million in revolving credit.

Positive

• Opened new greenfield location in Iowa with estimated annual revenues of $35 million.
• Plans to open three additional locations by the end of 2023.
• Total estimated liquidity of $175.1 million.

Negative

• Q1 2023 revenue decreased to $295.7 million from $376.2 million in Q1 2022.
• Net loss of $1.5 million compared to net income of $27.1 million in Q1 2022.
• Net loss per diluted share of $0.17, down from net income per diluted share of $1.17 a year ago.

TAMPA, Fla., April 27, 2023 /PRNewswire/ -- Lazydays (NasdaqCM: LAZY) today reported financial results for the first quarter ended March 31, 2023.

First quarter 2023 revenue decreased to $295.7 million from $376.2 million in the first quarter ended March 31, 2022.

First quarter 2023 net loss was $1.5 million, compared to net income of $27.1 million in the first quarter of 2022. First quarter 2023 adjusted net income, a non-GAAP measure, was  $1.2 million, compared to $28.2 million for the same period in 2022. First quarter 2023 net loss per diluted share was $0.17 compared to net income per diluted share of $1.17 in the first quarter of 2022. Adjusted first quarter 2022 net income per diluted share was $0.00 compared to net income per diluted share of $1.27 for the same period in 2022.

As shown in the attached non-GAAP reconciliation tables included in this press release, the 2023 first quarter adjusted results exclude a net non-core charge of $0.17 related to the effects of changes in fair value of warrant liabilities, our LIFO adjustment, acquisition expenses, certain severance and transition costs and an impairment charge related to internally developed software. The 2022 first quarter adjusted results exclude a net non-core charge of $0.10 related to the effects of changes in fair value of warrant liabilities, our LIFO adjustment, and acquisition expenses.

Corporate Development

On April 24, 2023, we opened our Council Bluffs, Iowa, greenfield location with estimated annual revenues of $35 million. We remain on track to open three additional greenfield locations in the back half of 2023.

Balance Sheet Update

We ended the first quarter with total estimated liquidity of $175.1 million including $41.0 million of cash on hand, $20.0 million of availability on our revolving line of credit, $62.5 million of immediately available cash on our floor plan offset account and $60.8 million of unfinanced real estate that we estimate could provide approximately $51.6 million of liquidity.

During the quarter we received approximately $30.5 million of proceeds from the exercise of approximately 4.0 million outstanding common share warrants, resulting in 2.7 million shares of common stock at an exercise price of $11.50 per share.  The remaining 300,000 common share warrants expired on March 15, 2023.

Conference Call Information:

We have scheduled a conference call at 8:30 AM Eastern Time on Thursday April 27, 2023 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 RV

As an iconic brand in the RV industry, Lazydays, The RV Authority, consistently provides outstanding 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 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 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 acquisitions 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:

• Anticipated revenues from acquired and open point stores; and
• Anticipated availability of liquidity from our credit facility and unfinanced operating real estate.

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 available borrowing capacity, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms), acts of God or other incidents which may adversely impact our operations and financial performance, government regulations, legislation and others set forth throughout "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and in "Part I, Item 1A. Risk Factors" of our most recent Annual Report on Form 10-K, and 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 presentation contains non-GAAP financial measures such as adjusted net income, adjusted diluted earnings per share, adjusted cost of goods sold, adjusted income before taxes, adjusted income tax benefit, adjusted SG&A, adjusted SG&A as a percentage of revenue, adjusted SG&A as a percentage of gross profit, adjusted operating income as a percentage of revenue, adjusted operating income as a percentage of gross profit, adjusted pre-tax income as a percentage of revenue and adjusted net income as a percentage of revenue. 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, but 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.

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

 

Results of Operations
		Three months ended March 31,
(In thousands except share and per share amounts)		2023		2022		% Change
Revenue
New vehicle retail		$               176,747		$               217,436		(18.7) %
Pre-owned vehicle retail		84,775		116,500		(27.2) %
Vehicle wholesale		1,708		6,524		(73.8) %
Finance and insurance		16,881		21,635		(22.0) %
Service, body and parts and other		15,545		14,066		10.5 %
Total revenue		295,656		376,161		(21.4) %
Cost applicable to revenues
New vehicle retail		153,331		172,605		(11.2) %
Pre-owned vehicle retail		67,528		88,283		(23.5) %
Vehicle wholesale		1,721		6,579		(73.8) %
Finance and insurance		693		697		(0.6) %
Service, body and parts and other		7,181		6,720		6.9 %
LIFO		1,311		2,460		(46.7) %
Total cost applicable to revenue		231,765		277,344		(16.4) %
Gross profit		63,891		98,817		(35.3) %
Depreciation and amortization		4,403		4,084		7.8 %
Selling, general, and administrative expenses		53,532		56,104		(4.6) %
Income from operations		5,956		38,629		(84.6) %
Other income (expense)
Floor plan interest expense		(5,531)		(976)		466.7 %
Other interest expense		(1,700)		(1,936)		(12.2) %
Change in fair value of warrant liabilities		856		1,540		(44.4) %
Total other expense, net		(6,375)		(1,372)		364.7 %
(Loss) income before income tax expense		(419)		37,257		(101.1) %
Income tax benefit (expense)		143		(8,973)		(101.6) %
Net (loss) income		(276)		28,284		(101.0) %
Dividends on Series A Convertible Preferred Stock		(1,184)		(1,184)		— %
Net (loss) income and comprehensive (loss) income attributable to common stock and participating securities		$                 (1,460)		$                 27,100		(105.4) %
EPS:
Basic		$                   (0.12)		$                     1.44		(108.3) %
Diluted		$                   (0.17)		$                     1.17		(114.5) %
Weighted average shares outstanding:
Basic		11,988,899		12,798,100		(6.3) %
Diluted		11,988,899		20,561,136		(41.7) %

 

 

Total Results Summary
		Three months ended March 31,
		2023		2022		Change
Gross profit margin
New vehicle retail		13.2 %		20.6 %		(737)	bps
Pre-owned vehicle retail		20.3 %		24.2 %		(388)	bps
Vehicle wholesale		(0.8) %		(0.8) %		8	bps
Finance and insurance		95.9 %		96.8 %		(88)	bps
Service, body and parts and other		53.8 %		52.2 %		158	bps
Total gross margin		21.6 %		26.3 %		(466)	bps
Total gross margin, excluding LIFO		22.1 %		26.9 %		(487)	bps
Retail units sold
New vehicle retail		1,980		2,270		(12.8) %
Used vehicle retail		1,304		1,478		(11.8) %
Total retail units sold		3,284		3,748		(12.4) %
Average selling price per retail unit
New vehicle retail		$          89,266		$          95,787		(6.8) %
Used vehicle retail		$          65,012		$          78,823		(17.5) %
Average gross profit per retail unit (excluding LIFO)
New vehicle retail		$          11,826		$          19,749		(40.1) %
Used vehicle retail		$          13,227		$          19,091		(30.7) %
Finance and insurance		$             4,929		$             5,586		(11.8) %
Revenue mix
New vehicle retail		59.8 %		57.8 %
Pre-owned vehicle retail		28.7 %		31.0 %
Vehicle wholesale		0.6 %		1.7 %
Finance and insurance		5.7 %		5.8 %
Service, body and parts and other		5.2 %		3.7 %
		100.0 %		100.0 %
Gross profit mix
New vehicle retail		36.7 %		45.4 %
Pre-owned vehicle retail		27.0 %		28.6 %
Vehicle wholesale		— %		(0.1) %
Finance and insurance		25.3 %		21.2 %
Service, body and parts and other		13.1 %		7.4 %
LIFO		(2.1) %		(2.5) %
		100.0 %		100.0 %

 

Other Metrics
		Adjusted				As Reported
		Three months ended March 31,				Three months ended March 31,
		2023		2022		2023		2022
SG&A as a % of revenue		17.6 %		14.9 %		18.1 %		14.9 %
SG&A as % of gross profit, excluding LIFO		79.7 %		55.4 %		82.1 %		55.4 %
Income from operations as a % of revenue		3.0 %		10.9 %		2.0 %		10.3 %
Income from operations as a % of gross profit, excluding LIFO		13.5 %		40.6 %		9.1 %		38.1 %
Income (loss) before income taxes as % of revenue		0.5 %		10.2 %		(0.1) %		9.9 %
Net income (loss) as a % of revenue		0.4 %		7.5 %		(0.1) %		7.5 %

 

Other Highlights
		As of
		March 31, 2023		December 31, 2022
Dealerships		19		18
Days Supply*
New vehicle inventory		207		250
Used vehicle inventory		77		78

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

 

Financial Covenants
				As of
		Requirement		March 31, 2023
Fixed charge coverage ratio		Not less than 1.25 to 1		2.57 to 1
Leverage ratio		Not more than 3.0 to 1		0.63 to 1
Current ratio		Not less than 1.15 to 1		1.24 to 1

 

Same-Store Results Summary
		Three months ended March 31,
($ in thousands, except per vehicle data)		2023		2022		Change
Revenues
New vehicle retail		$                     167,966		$                     217,436		(22.8) %
Pre-owned vehicle retail		81,961		116,500		(29.6) %
Vehicle wholesale		1,708		6,524		(73.8) %
Finance and insurance		16,129		21,635		(25.4) %
Service, body and parts and other		14,950		14,066		6.3 %
Total revenues		$                     282,714		$                     376,161		(24.8) %
Gross profit
New vehicle retail		$                       22,336		$                       44,831		(50.2) %
Pre-owned vehicle retail		16,672		28,217		(40.9) %
Vehicle wholesale		(13)		(55)		(76.4) %
Finance and insurance		15,466		20,938		(26.1) %
Service, body and parts and other		8,032		7,346		9.3 %
LIFO		(1,311)		(2,460)		(46.7) %
Total gross profit		$                       61,182		$                       98,817		(38.1) %
Gross profit margins
New vehicle retail		13.3 %		20.6 %		(732)	bps
Pre-owned vehicle retail		20.3 %		24.2 %		(388)	bps
Vehicle wholesale		(0.8) %		(0.8) %		8	bps
Finance and insurance		95.9 %		96.8 %		(89)	bps
Service, body and parts and other		53.7 %		52.2 %		150	bps
Total gross profit margin		21.6 %		26.3 %		(463)	bps
Total gross profit margin (excluding LIFO)		22.1 %		26.9 %		(482)	bps
Retail units sold
New vehicle retail		1,841		2,270		(18.9) %
Used vehicle retail		1,248		1,478		(15.6) %
Total retail units sold		3,089		3,748		(17.6) %
Average selling price per retail unit
New vehicle retail		$                       91,236		$                       95,787		(4.8) %
Used vehicle retail		$                       65,674		$                       78,823		(16.7) %
Average gross profit per retail unit (excluding LIFO)
New vehicle retail		$                       12,132		$                       19,749		(38.6) %
Used vehicle retail		$                       13,359		$                       19,091		(30.0) %
Finance and insurance		$                         5,007		$                         5,586		(10.4) %

NM - Not meaningful

 

Condensed Consolidated Balance Sheets
(In thousands)		As of March 31, 2023		As of December 31, 2022
Current assets
Cash		$                        41,049		$                        61,687
Receivables, net		28,405		25,053
Inventories		419,136		378,881
Other current assets		14,029		11,228
Total current assets		502,619		476,849
Long-term assets
Property and equipment, net		177,818		158,991
Goodwill and intangible assets, net		168,960		165,125
Other assets		28,744		29,753
Total assets		$                      878,141		$                      830,718
Current liabilities
Floor plan notes payable		$                      342,280		$                      348,735
Other current liabilities		54,622		50,890
Total current liabilities		396,902		399,625
Long-term liabilities
Financing liability, non-current portion, net		90,694		89,770
Revolving line of credit		30,000		—
Long-term debt, non-current portion, net		306		10,131
Other long-term liabilities		37,156		39,197
Total liabilities		555,058		538,723
Series A Convertible Preferred Stock		54,983		54,983
Stockholders' Equity		268,100		237,012
Total liabilities and stockholders' equity		$                      878,141		$                      830,718

 

Condensed Statements of Cash Flows
		For the three months ended March 31,
(In thousands)		2023		2022
Cash Flows From Operating Activities
Net (loss) income		$                              (276)		$                          28,284
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Stock based compensation		797		523
Bad debt expense		7		11
Depreciation of property and equipment		2,570		2,277
Amortization of intangible assets		1,833		1,807
Amortization of debt discount		91		108
Non-cash lease expense		22		36
Loss on sale of property and equipment		—		6
Change in fair value of warrant liabilities		(856)		(1,540)
Tax benefit related to stock-based awards		—		(74)
Impairment charges		538		—
Changes in operating assets and liabilities (net of acquisitions and dispositions):
Receivables		(3,359)		(20,838)
Inventories		(33,650)		(41,412)
Prepaid expenses and other		(2,766)		113
Income tax receivable/payable		(146)		9,051
Other assets		(603)		76
Accounts payable		2,642		3,578
Accrued expenses and other current liabilities		4,324		561
Total Adjustments		(28,556)		(45,717)
Net Cash Used In Operating Activities		$                         (28,832)		$                         (17,433)
		For the three months ended March 31,
(In thousands)		2023		2022
Net Cash Used In Operating Activities
As reported		$                         (28,832)		$                         (17,433)
Net borrowings (repayments) on floor plan notes payable		(6,495)		38,066
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		$                                402		$                          20,633

 

 

Reconciliation of Non-GAAP Measures
		Three months ended March 31, 2023
($ in thousands, except per share amounts)		As reported		Gain on change in fair value of warrant liabilities		LIFO		Acquisition expense		Severance and transition costs		Impairment charge		Adjusted
Costs applicable to revenues		$    231,765		$                   —		$  (1,311)		$               —		$                   —		$                —		$   230,454
Selling, general and administrative expenses		53,532		—		—		(262)		(653)		(629)		51,988
Income from operations		5,956		—		1,311		262		653		629		8,811
Gain on change in fair value of warrant liabilities		856		(856)		—		—		—		—		—
(Loss) income before income taxes		$          (419)		$               (856)		$  1,311		$            262		$                653		$             629		$       1,580
Income tax benefit (expense)		143		—		(248)		(50)		(124)		(119)		(398)
Net (loss) income		$          (276)		$               (856)		$  1,063		$            212		$                529		$             510		$       1,182
Diluted (loss) income per share		$         (0.17)												$            —
Shares used for diluted calculation		11,988,899

 

		Three months ended March 31, 2022
($ in thousands, except per share amounts)		As reported		Gain on change in fair value of warrant liabilities		LIFO		Acquisition expense		Adjusted
Costs applicable to revenues		$                 277,344		$                               —		$          (2,460)		$                         —		$              274,884
Selling, general and administrative expenses		56,104		—		—		(34)		56,070
Income from operations		38,629		—		2,460		34		41,123
Gain on change in fair value of warrant liabilities		1,540		(1,540)		—		—		—
Income (loss) before income taxes		$                  37,257		$                        (1,540)		$           2,460		$                         34		$                38,211
Income tax expense		(8,973)		—		(984)		(14)		(9,971)
Net income (loss)		$                   28,284		$                          (1,540)		$           1,476		$                          20		$                28,240
Diluted earnings per share		$                        1.17								$                    1.27
Shares used for diluted calculation		20,561,136

* In periods where the change in fair value of warrants is a gain, the diluted EPS calculation is not affected by this line item.

 

 

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SOURCE Lazydays Holdings, Inc.

FAQ

What were Lazydays' Q1 2023 earnings results?

Lazydays reported a net loss of $1.5 million and revenue of $295.7 million for Q1 2023.

How did Lazydays perform compared to Q1 2022?

In Q1 2022, Lazydays had a net income of $27.1 million and revenue of $376.2 million.

What is the outlook for Lazydays after opening new locations?

Lazydays opened a new location in Iowa and plans to open three more locations by the end of 2023.

What is Lazydays' liquidity position as of Q1 2023?

Lazydays ended Q1 2023 with total estimated liquidity of $175.1 million.