Lazydays Holdings Inc.
08/15/2024 | Press release | Distributed by Public on 08/15/2024 18:41
LAZYDAYS REPORTS SECOND QUARTER 2024 RESULTS
TAMPA, Fla., Aug. 15, 2024- 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 $5,300per 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 millionannually. We have also closed our Waller, Texasdealership, and consolidated our retail operations from two locations to one in the Surprise, Arizonamarket.
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 $3.22compared to net income per diluted share of $0.12for the same period in 2023. Adjusted net loss per diluted share was $1.42compared to adjusted net income per diluted share of $0.14for 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 $4.89compared to net income per diluted share of $0.00for the same period in 2023. Adjusted net loss per diluted share was $3.51compared to adjusted net income per diluted share of $0.13for 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 millionin 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 $5.25per 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:
[email protected]
|
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 |
$ (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 |
$ (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 |
|
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 |
LIFO |
Transaction |
Severance |
Deferred |
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 |
$ (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 |
$ 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 |
LIFO |
Transaction |
Severance |
Deferred Tax |
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 |
$ (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 |
LIFO |
Transaction costs |
Severance |
Impairment |
Storm |
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) |
$ 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 |
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SOURCE Lazydays