TAMPA,
Fla., July 28, 2023 /PRNewswire/ -- Lazydays
(NasdaqCM: LAZY) today reported financial results for the second
quarter ended June 30, 2023.
Second quarter 2023 revenue decreased to $308.4 million from $373.6 million in the second quarter of
2022.
Second quarter 2023 net income was $3.6
million compared to $27.1
million for the same period in 2022. Second quarter 2023
adjusted net income, a non-GAAP measure, was $3.9 million compared to $23.5 million for the same period in 2022. Second
quarter 2023 net income per diluted share was $0.12 compared to $0.81 for the same period in 2022. Adjusted
second quarter 2023 net income per diluted share was $0.14 compared to $0.87 for the same period in 2022.
Net income for the first six months of 2023 was $3.3 million compared to $60.1 million for the same period in 2022.
Adjusted net income for the first six months of 2023 was
$5.1 million compared to $51.7 million for the same period in 2022. For
the six months ended June 30 2023,
net income per diluted share was $0.00 compared to $1.98 for the same period of 2022, and adjusted
net income per diluted share was $0.13 compared to $2.12 for the same period in 2022.
As shown in the attached non-GAAP reconciliation tables, the
second quarter 2023 adjusted results exclude a net non-core charge
of $0.02 per diluted share related to
our LIFO adjustment, acquisition expenses and a storm reserve. The
second quarter 2022 adjusted results exclude a net non-core charge
of $0.06 related to the effects of
changes in fair value of warrant liabilities, our LIFO adjustment
and acquisition expenses. The adjusted year to date results for the
six months ended June 30, 2023
exclude a net non-core charge of $0.08 related to the effects of changes in the
fair value of warrant liabilities, our LIFO adjustment, acquisition
expenses, transition costs, an impairment charge and a storm
reserve. The adjusted year to date results for the same period in
2022 exclude a net non-core charge of $0.14 related to the effects of changes in the
fair value of warrant liabilities, our LIFO adjustment, acquisition
expenses and transition costs.
Corporate Development
Earlier this month we acquired Buddy Gregg Motorhomes in
Knoxville, Tennessee. We estimate
this store will add approximately $40
million in revenue at steady state and will more than offset
the closure of our Maryville store
due to the expansion of the Alcoa Highway by the Tennessee DOT.
In July, our Monticello,
Minnesota store became exclusive to the Airstream brand. We
renamed the store Airstream Minneapolis.
During the quarter we completed the purchase of a new 8-acre
parcel in Las Vegas, Nevada and
broke ground on a state-of-the-art facility to relocate our
existing store in that market.
We remain on track to open our Wilmington, Ohio and Ft. Pierce, Florida greenfield locations in the third
quarter and our Surprise, Arizona
greenfield location in the fourth quarter of this year.
Balance Sheet Update
We ended the second quarter with total estimated liquidity of
$85.3 million including cash of
$24.2 million,
$4.6 million of availability on
our revolving credit facility and $56.4
million in available floor plan capacity and our floor plan
offset account. Additionally, we hold unfinanced real estate of
$72.0 million that we estimate could
provide liquidity of approximately $61
million.
In July, we completed mortgages on our Murfreesboro, Tennessee store and on our
Knoxville property purchased with
the Buddy Gregg acquisition. These mortgages generated net proceeds
of $30.6 million.
Conference Call Information:
We have scheduled a conference call at 8:30 AM Eastern Time on Friday, July 28, 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
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 "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.
Results of
Operations
|
|
|
|
Three months ended
June 30,
|
|
|
(In thousands except
share and per share amounts)
|
|
2023
|
|
2022
|
|
%
Change
|
Revenue
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
182,752
|
|
$
219,186
|
|
(16.6) %
|
Pre-owned vehicle
retail
|
|
90,991
|
|
112,430
|
|
(19.1) %
|
Vehicle
wholesale
|
|
1,716
|
|
5,704
|
|
(69.9) %
|
Finance and
insurance
|
|
17,742
|
|
21,382
|
|
(17.0) %
|
Service, body and
parts and other
|
|
15,179
|
|
14,850
|
|
2.2 %
|
Total
revenue
|
|
308,380
|
|
373,552
|
|
(17.4) %
|
|
|
|
|
|
|
|
Cost applicable to
revenues
|
|
|
|
|
|
|
New vehicle
retail
|
|
158,144
|
|
175,109
|
|
(9.7) %
|
Pre-owned vehicle
retail
|
|
72,425
|
|
83,627
|
|
(13.4) %
|
Vehicle
wholesale
|
|
1,685
|
|
5,834
|
|
(71.1) %
|
Finance and
insurance
|
|
810
|
|
843
|
|
(3.9) %
|
Service, body and
parts and other
|
|
7,517
|
|
7,656
|
|
(1.8) %
|
LIFO
|
|
76
|
|
1,866
|
|
(95.9) %
|
Total cost applicable
to revenue
|
|
240,657
|
|
274,935
|
|
(12.5) %
|
Gross profit
|
|
67,723
|
|
98,617
|
|
(31.3) %
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
4,459
|
|
4,052
|
|
10.0 %
|
Selling, general, and
administrative expenses
|
|
50,480
|
|
61,605
|
|
(18.1) %
|
Income from
operations
|
|
12,784
|
|
32,960
|
|
(61.2) %
|
Other income
(expense)
|
|
|
|
|
|
|
Floor plan interest
expense
|
|
(5,835)
|
|
(1,466)
|
|
298.0 %
|
Other interest
expense
|
|
(2,083)
|
|
(1,919)
|
|
8.6 %
|
Change in fair value
of warrant liabilities
|
|
—
|
|
9,652
|
|
(100.0) %
|
Total other expense,
net
|
|
(7,918)
|
|
6,267
|
|
(226.3) %
|
(Loss) income before
income tax expense
|
|
4,866
|
|
39,227
|
|
(87.6) %
|
Income tax benefit
(expense)
|
|
(1,306)
|
|
(7,383)
|
|
(82.3) %
|
Net (loss)
income
|
|
3,560
|
|
31,844
|
|
(88.8) %
|
Dividends on Series A
Convertible Preferred
Stock
|
|
(1,196)
|
|
(1,197)
|
|
(0.1) %
|
Net (loss) income and
comprehensive (loss)
income attributable to common stock and
participating securities
|
|
$
2,364
|
|
$
30,647
|
|
(92.3) %
|
|
|
|
|
|
|
|
EPS:
|
|
|
|
|
|
|
Basic
|
|
$
0.12
|
|
$
1.76
|
|
(93.2) %
|
Diluted
|
|
$
0.12
|
|
$
0.81
|
|
(85.2) %
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
Basic
|
|
14,181,659
|
|
11,394,761
|
|
24.5 %
|
Diluted
|
|
14,292,064
|
|
12,871,296
|
|
11.0 %
|
|
|
Six months ended
June 30,
|
|
|
(In thousands except
share and per share amounts)
|
|
2023
|
|
2022
|
|
%
Change
|
Revenue
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
359,499
|
|
$
436,622
|
|
(17.7) %
|
Pre-owned vehicle
retail
|
|
175,766
|
|
228,930
|
|
(23.2) %
|
Vehicle
wholesale
|
|
3,424
|
|
12,228
|
|
(72.0) %
|
Finance and
insurance
|
|
34,623
|
|
43,017
|
|
(19.5) %
|
Service, body and
parts and other
|
|
30,724
|
|
28,916
|
|
6.3 %
|
Total
revenue
|
|
604,036
|
|
749,713
|
|
(19.4) %
|
|
|
|
|
|
|
|
Cost applicable to
revenues
|
|
|
|
|
|
|
New vehicle
retail
|
|
311,475
|
|
347,714
|
|
(10.4) %
|
Pre-owned vehicle
retail
|
|
139,953
|
|
171,910
|
|
(18.6) %
|
Vehicle
wholesale
|
|
3,406
|
|
12,413
|
|
(72.6) %
|
Finance and
insurance
|
|
1,503
|
|
1,540
|
|
(2.4) %
|
Service, body and
parts and other
|
|
14,698
|
|
14,376
|
|
2.2 %
|
LIFO
|
|
1,387
|
|
4,326
|
|
(67.9) %
|
Total cost applicable
to revenue
|
|
472,422
|
|
552,279
|
|
(14.5) %
|
Gross profit
|
|
131,614
|
|
197,434
|
|
(33.3) %
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
8,862
|
|
8,136
|
|
8.9 %
|
Selling, general, and
administrative expenses
|
|
104,012
|
|
117,709
|
|
(11.6) %
|
Income from
operations
|
|
18,740
|
|
71,589
|
|
(73.8) %
|
Other income
(expense)
|
|
|
|
|
|
|
Floor plan interest
expense
|
|
(11,366)
|
|
(2,442)
|
|
365.4 %
|
Other interest
expense
|
|
(3,783)
|
|
(3,855)
|
|
(1.9) %
|
Change in fair value
of warrant liabilities
|
|
856
|
|
11,192
|
|
(92.4) %
|
Total other expense,
net
|
|
(14,293)
|
|
4,895
|
|
(392.0) %
|
(Loss) income before
income tax expense
|
|
4,447
|
|
76,484
|
|
(94.2) %
|
Income tax benefit
(expense)
|
|
(1,163)
|
|
(16,356)
|
|
(92.9) %
|
Net (loss)
income
|
|
3,284
|
|
60,128
|
|
(94.5) %
|
Dividends on Series A
Convertible Preferred
Stock
|
|
(2,380)
|
|
(2,381)
|
|
— %
|
Net (loss) income and
comprehensive (loss)
income attributable to common stock and
participating securities
|
|
$
904
|
|
$
57,747
|
|
(98.4) %
|
|
|
|
|
|
|
|
EPS:
|
|
|
|
|
|
|
Basic
|
|
$
0.05
|
|
$
3.14
|
|
(98.4) %
|
Diluted
|
|
$
—
|
|
$
1.98
|
|
(100.0) %
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
Basic
|
|
13,066,607
|
|
12,336,431
|
|
5.9 %
|
Diluted
|
|
13,188,135
|
|
13,914,982
|
|
(5.2) %
|
Total Results
Summary
|
|
|
|
Three months ended
June 30,
|
|
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
Gross profit
margin
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
13.5 %
|
|
20.1 %
|
|
(660)
|
bps
|
Pre-owned vehicle
retail
|
|
20.4 %
|
|
25.6 %
|
|
(520)
|
bps
|
Vehicle
wholesale
|
|
1.8 %
|
|
(2.3) %
|
|
410
|
bps
|
Finance and
insurance
|
|
95.4 %
|
|
96.1 %
|
|
(70)
|
bps
|
Service, body and
parts and other
|
|
50.5 %
|
|
48.4 %
|
|
210
|
bps
|
Total gross
margin
|
|
22.0 %
|
|
26.4 %
|
|
(440)
|
bps
|
Total gross margin,
excluding LIFO
|
|
22.0 %
|
|
26.9 %
|
|
(490)
|
bps
|
|
|
|
|
|
|
|
|
Retail units
sold
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
1,979
|
|
2,455
|
|
(19.4) %
|
|
Used vehicle
retail
|
|
1,388
|
|
1,597
|
|
(13.1) %
|
|
Total retail units
sold
|
|
3,367
|
|
4,052
|
|
(16.9) %
|
|
|
|
|
|
|
|
|
|
Average selling
price per retail unit
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
92,346
|
|
$
89,281
|
|
3.4 %
|
|
Used vehicle
retail
|
|
$
65,555
|
|
$
70,401
|
|
(6.9) %
|
|
|
|
|
|
|
|
|
|
Average gross profit
per retail unit (excluding LIFO)
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
12,552
|
|
$
17,954
|
|
(30.1) %
|
|
Used vehicle
retail
|
|
$
13,461
|
|
$
18,036
|
|
(25.4) %
|
|
Finance and
insurance
|
|
$
5,029
|
|
$
5,069
|
|
(0.8) %
|
|
|
|
|
|
|
|
|
|
Revenue
mix
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
59.3 %
|
|
58.7 %
|
|
|
|
Pre-owned vehicle
retail
|
|
29.5 %
|
|
30.1 %
|
|
|
|
Vehicle
wholesale
|
|
0.6 %
|
|
1.5 %
|
|
|
|
Finance and
insurance
|
|
5.8 %
|
|
5.7 %
|
|
|
|
Service, body and
parts and other
|
|
4.9 %
|
|
4.0 %
|
|
|
|
|
|
100.0 %
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
mix
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
36.3 %
|
|
44.7 %
|
|
|
|
Pre-owned vehicle
retail
|
|
27.4 %
|
|
29.2 %
|
|
|
|
Vehicle
wholesale
|
|
— %
|
|
(0.1) %
|
|
|
|
Finance and
insurance
|
|
25.0 %
|
|
20.8 %
|
|
|
|
Service, body and
parts and other
|
|
11.3 %
|
|
7.3 %
|
|
|
|
LIFO
|
|
(0.1) %
|
|
(1.9) %
|
|
|
|
|
|
100.0 %
|
|
100.0 %
|
|
|
|
|
|
Six months ended
June 30,
|
|
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
Gross profit
margin
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
13.4 %
|
|
20.4 %
|
|
(700)
|
bps
|
Pre-owned vehicle
retail
|
|
20.4 %
|
|
24.9 %
|
|
(450)
|
bps
|
Vehicle
wholesale
|
|
0.5 %
|
|
(1.5) %
|
|
200
|
bps
|
Finance and
insurance
|
|
95.7 %
|
|
96.4 %
|
|
(70)
|
bps
|
Service, body and
parts and other
|
|
52.2 %
|
|
50.3 %
|
|
190
|
bps
|
Total gross
margin
|
|
21.8 %
|
|
26.3 %
|
|
(450)
|
bps
|
Total gross margin,
excluding LIFO
|
|
22.0 %
|
|
26.9 %
|
|
(490)
|
bps
|
|
|
|
|
|
|
|
|
Retail units
sold
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
3,959
|
|
4,725
|
|
(16.2) %
|
|
Used vehicle
retail
|
|
2,692
|
|
3,075
|
|
(12.5) %
|
|
Total retail units
sold
|
|
6,651
|
|
7,800
|
|
(14.7) %
|
|
|
|
|
|
|
|
|
|
Average selling
price per retail unit
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
90,806
|
|
$
92,407
|
|
(1.7) %
|
|
Used vehicle
retail
|
|
$
65,292
|
|
$
74,449
|
|
(12.3) %
|
|
|
|
|
|
|
|
|
|
Average gross profit
per retail unit (excluding LIFO)
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
12,189
|
|
$
18,816
|
|
(35.2) %
|
|
Used vehicle
retail
|
|
$
13,347
|
|
$
18,543
|
|
(28.0) %
|
|
Finance and
insurance
|
|
$
4,980
|
|
$
5,318
|
|
(6.4) %
|
|
|
|
|
|
|
|
|
|
Revenue
mix
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
59.5 %
|
|
58.2 %
|
|
|
|
Pre-owned vehicle
retail
|
|
29.1 %
|
|
30.5 %
|
|
|
|
Vehicle
wholesale
|
|
0.6 %
|
|
1.6 %
|
|
|
|
Finance and
insurance
|
|
5.7 %
|
|
5.7 %
|
|
|
|
Service, body and
parts and other
|
|
5.1 %
|
|
3.9 %
|
|
|
|
|
|
100.0 %
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
mix
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
36.5 %
|
|
45.0 %
|
|
|
|
Pre-owned vehicle
retail
|
|
27.2 %
|
|
28.9 %
|
|
|
|
Vehicle
wholesale
|
|
— %
|
|
(0.1) %
|
|
|
|
Finance and
insurance
|
|
25.2 %
|
|
21.0 %
|
|
|
|
Service, body and
parts and other
|
|
12.2 %
|
|
7.4 %
|
|
|
|
LIFO
|
|
(1.1) %
|
|
(2.2) %
|
|
|
|
|
|
100.0 %
|
|
100.0 %
|
|
|
|
Other
Metrics
|
|
|
|
Adjusted
|
|
As
Reported
|
|
|
Three months
ended
June 30,
|
|
Three months
ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
SG&A as a % of
revenue
|
|
16.2 %
|
|
16.4 %
|
|
16.4 %
|
|
16.5 %
|
SG&A as % of gross
profit, excluding LIFO
|
|
73.7 %
|
|
63.4 %
|
|
74.5 %
|
|
63.7 %
|
Income from operations
as a % of revenue
|
|
4.3 %
|
|
9.4 %
|
|
4.1 %
|
|
8.8 %
|
Income from operations
as a % of gross profit, excluding LIFO
|
|
19.7 %
|
|
36.3 %
|
|
18.9 %
|
|
34.1 %
|
Income (loss) before
income taxes as % of revenue
|
|
1.8 %
|
|
8.5 %
|
|
1.6 %
|
|
10.5 %
|
Net income (loss) as a
% of revenue
|
|
1.3 %
|
|
6.3 %
|
|
1.2 %
|
|
8.5 %
|
|
|
Adjusted
|
|
As
Reported
|
|
|
Six months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
SG&A as a % of
revenue
|
|
16.9 %
|
|
15.7 %
|
|
17.2 %
|
|
15.7 %
|
SG&A as % of gross
profit, excluding LIFO
|
|
76.7 %
|
|
60.8 %
|
|
78.2 %
|
|
61.0 %
|
Income from operations
as a % of revenue
|
|
3.7 %
|
|
10.2 %
|
|
3.1 %
|
|
9.5 %
|
Income from operations
as a % of gross profit, excluding LIFO
|
|
16.7 %
|
|
39.5 %
|
|
14.1 %
|
|
37.1 %
|
Income (loss) before
income taxes as % of revenue
|
|
1.2 %
|
|
9.3 %
|
|
0.7 %
|
|
10.2 %
|
Net income (loss) as a
% of revenue
|
|
0.8 %
|
|
6.9 %
|
|
0.5 %
|
|
8.0 %
|
Other
Highlights
|
|
|
|
As of
|
|
|
June 30,
2023
|
|
December 31,
2022
|
Dealerships
|
|
20
|
|
18
|
|
|
|
|
|
Days
Supply*
|
|
|
|
|
New vehicle
inventory
|
|
180
|
|
250
|
Pre-owned vehicle
inventory
|
|
83
|
|
78
|
|
* Days supply
calculated based on current inventory levels and a 90 day
historical average cost of sales level.
|
Financial
Covenants
|
|
|
|
|
|
As of
|
|
|
Requirement
|
|
June 30,
2023
|
Fixed charge coverage
ratio
|
|
Not less than 1.25 to
1
|
|
1.87
|
Leverage
ratio
|
|
Not more than 3.0 to
1
|
|
1.51
|
Current
ratio
|
|
Not less than 1.15 to
1
|
|
1.27
|
Same-Store Results
Summary
|
|
|
|
Three months ended
June 30,
|
|
|
|
($ in thousands,
except per vehicle data)
|
|
2023
|
|
2022
|
|
Change
|
|
Revenues
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
171,812
|
|
$
219,186
|
|
(21.6) %
|
|
Pre-owned vehicle
retail
|
|
86,577
|
|
112,430
|
|
(23.0) %
|
|
Vehicle
wholesale
|
|
1,646
|
|
5,704
|
|
(71.1) %
|
|
Finance and
insurance
|
|
16,531
|
|
21,382
|
|
(22.7) %
|
|
Service, body and
parts and other
|
|
14,340
|
|
14,849
|
|
(3.4) %
|
|
Total
revenues
|
|
$
290,906
|
|
$
373,551
|
|
(22.1) %
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
23,166
|
|
$
44,077
|
|
(47.4) %
|
|
Pre-owned vehicle
retail
|
|
17,585
|
|
28,803
|
|
(38.9) %
|
|
Vehicle
wholesale
|
|
36
|
|
(130)
|
|
NM
|
|
Finance and
insurance
|
|
15,767
|
|
20,540
|
|
(23.2) %
|
|
Service, body and
parts and other
|
|
7,219
|
|
7,193
|
|
0.4 %
|
|
LIFO
|
|
(76)
|
|
(1,866)
|
|
(95.9) %
|
|
Total gross
profit
|
|
$
63,697
|
|
$
98,618
|
|
(35.4) %
|
|
|
|
|
|
|
|
|
|
Gross profit
margins
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
13.5 %
|
|
20.1 %
|
|
(660)
|
bps
|
Pre-owned vehicle
retail
|
|
20.3 %
|
|
25.6 %
|
|
(530)
|
bps
|
Vehicle
wholesale
|
|
2.2 %
|
|
(2.3) %
|
|
450
|
bps
|
Finance and
insurance
|
|
95.4 %
|
|
96.1 %
|
|
(70)
|
bps
|
Service, body and
parts and other
|
|
50.3 %
|
|
48.4 %
|
|
190
|
bps
|
Total gross profit
margin
|
|
21.9 %
|
|
26.4 %
|
|
(450)
|
bps
|
Total gross profit
margin (excluding LIFO)
|
|
21.9 %
|
|
26.9 %
|
|
(500)
|
bps
|
|
|
|
|
|
|
|
|
Retail units
sold
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
1,836
|
|
2,455
|
|
(25.2) %
|
|
Used vehicle
retail
|
|
1,305
|
|
1,597
|
|
(18.3) %
|
|
Total retail units
sold
|
|
3,141
|
|
4,052
|
|
(22.5) %
|
|
|
|
|
|
|
|
|
|
Average selling
price per retail unit
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
93,580
|
|
$
89,281
|
|
4.8 %
|
|
Used vehicle
retail
|
|
$
66,342
|
|
$
70,401
|
|
(5.8) %
|
|
|
|
|
|
|
|
|
|
Average gross profit
per retail unit (excluding LIFO)
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
12,744
|
|
$
17,954
|
|
(29.0) %
|
|
Used vehicle
retail
|
|
$
13,566
|
|
$
18,036
|
|
(24.8) %
|
|
Finance and
insurance
|
|
$
5,020
|
|
$
5,069
|
|
(1.0) %
|
|
|
|
Six months ended
June 30,
|
|
|
|
(In thousands,
except vehicle and per vehicle data)
|
|
2023
|
|
2022
|
|
Change
|
|
Revenues
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
339,778
|
|
$
436,622
|
|
(22.2) %
|
|
Pre-owned vehicle
retail
|
|
168,538
|
|
228,930
|
|
(26.4) %
|
|
Vehicle
wholesale
|
|
3,354
|
|
12,228
|
|
(72.6) %
|
|
Finance and
insurance
|
|
32,660
|
|
43,017
|
|
(24.1) %
|
|
Service, body and
parts and other
|
|
29,289
|
|
28,915
|
|
1.3 %
|
|
Total
revenues
|
|
$
573,619
|
|
$
749,712
|
|
(23.5) %
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
45,502
|
|
$
88,908
|
|
(48.8) %
|
|
Pre-owned vehicle
retail
|
|
34,257
|
|
57,020
|
|
(39.9) %
|
|
Vehicle
wholesale
|
|
23
|
|
(186)
|
|
NM
|
|
Finance and
insurance
|
|
31,233
|
|
41,478
|
|
(24.7) %
|
|
Service, body and
parts and other
|
|
15,251
|
|
14,540
|
|
4.9 %
|
|
LIFO
|
|
(1,387)
|
|
(4,326)
|
|
(67.9) %
|
|
Total gross
profit
|
|
$
124,879
|
|
$
197,432
|
|
(36.7) %
|
|
|
|
|
|
|
|
|
|
Gross profit
margins
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
13.4 %
|
|
20.4 %
|
|
(700)
|
bps
|
Pre-owned vehicle
retail
|
|
20.3 %
|
|
24.9 %
|
|
(460)
|
bps
|
Vehicle
wholesale
|
|
0.7 %
|
|
(1.5) %
|
|
220
|
bps
|
Finance and
insurance
|
|
95.6 %
|
|
96.4 %
|
|
(80)
|
bps
|
Service, body and
parts and other
|
|
52.1 %
|
|
50.3 %
|
|
180
|
bps
|
Total gross profit
margin
|
|
21.8 %
|
|
26.3 %
|
|
(450)
|
bps
|
Total gross profit
margin (excluding LIFO)
|
|
22.0 %
|
|
26.9 %
|
|
(490)
|
bps
|
|
|
|
|
|
|
|
|
Retail units
sold
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
3,677
|
|
4,725
|
|
(22.2) %
|
|
Pre-owned vehicle
retail
|
|
2,553
|
|
3,075
|
|
(17.0) %
|
|
Total retail units
sold
|
|
6,230
|
|
7,800
|
|
(20.1) %
|
|
|
|
|
|
|
|
|
|
Average selling
price per retail unit
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
92,406
|
|
$
92,407
|
|
— %
|
|
Pre-owned vehicle
retail
|
|
$
66,016
|
|
$
74,449
|
|
(11.3) %
|
|
|
|
|
|
|
|
|
|
Average gross profit
per retail unit (excluding LIFO)
|
|
|
|
|
|
|
|
New vehicle
retail
|
|
$
12,438
|
|
$
18,816
|
|
(33.9) %
|
|
Pre-owned vehicle
retail
|
|
$
13,465
|
|
$
18,543
|
|
(27.4) %
|
|
Finance and
insurance
|
|
$
5,013
|
|
$
5,318
|
|
(5.7) %
|
|
Condensed
Consolidated Balance Sheets
|
|
(In
thousands)
|
|
As of June 30,
2023
|
|
As of December 31,
2022
|
Current
assets
|
|
|
|
|
Cash
|
|
$
24,173
|
|
$
61,687
|
Receivables,
net
|
|
28,468
|
|
25,053
|
Inventories
|
|
389,832
|
|
378,881
|
Other current
assets
|
|
12,163
|
|
11,228
|
Total current assets
|
|
454,636
|
|
476,849
|
|
|
|
|
|
Long-term
assets
|
|
|
|
|
Property and
equipment, net
|
|
207,568
|
|
158,991
|
Goodwill and
intangible assets, net
|
|
167,127
|
|
165,125
|
Other
assets
|
|
27,995
|
|
29,753
|
Total assets
|
|
$
857,326
|
|
$
830,718
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Floor plan notes
payable
|
|
$
305,061
|
|
$
348,735
|
Other current
liabilities
|
|
54,220
|
|
50,890
|
Total current liabilities
|
|
359,281
|
|
399,625
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
Financing
liability, non-current portion, net
|
|
90,090
|
|
89,770
|
Revolving line
of credit
|
|
45,000
|
|
—
|
Long-term debt,
non-current portion, net
|
|
312
|
|
10,131
|
Other long-term
liabilities
|
|
36,090
|
|
39,197
|
Total liabilities
|
|
530,773
|
|
538,723
|
|
|
|
|
|
Series A
Convertible Preferred Stock
|
|
54,983
|
|
54,983
|
Stockholders'
Equity
|
|
271,570
|
|
237,012
|
Total liabilities and stockholders' equity
|
|
$
857,326
|
|
$
830,718
|
Condensed Statements
of Cash Flows
|
|
|
|
Six months ended
June 30,
|
(In
thousands)
|
|
2023
|
|
2022
|
Cash Flows From
Operating Activities
|
|
|
|
|
Net (loss)
income
|
|
$
3,284
|
|
$
60,128
|
Adjustments to
reconcile net (loss) income to net cash used in
operating activities:
|
|
|
|
|
Stock based
compensation
|
|
1,639
|
|
1,252
|
Bad debt
expense
|
|
9
|
|
76
|
Depreciation of
property and equipment
|
|
5,195
|
|
4,521
|
Amortization of
intangible assets
|
|
3,667
|
|
3,615
|
Amortization of debt
discount
|
|
655
|
|
186
|
Non-cash lease
expense
|
|
93
|
|
138
|
Loss on sale of
property and equipment
|
|
—
|
|
2
|
Deferred income
taxes
|
|
(147)
|
|
—
|
Change in fair value
of warrant liabilities
|
|
(856)
|
|
(11,192)
|
Tax benefit related to
stock-based awards
|
|
—
|
|
79
|
Impairment
charges
|
|
538
|
|
—
|
Changes in operating
assets and liabilities (net of acquisitions and
dispositions):
|
|
|
|
|
Receivables
|
|
(3,424)
|
|
(3,665)
|
Inventories
|
|
(4,346)
|
|
(79,231)
|
Prepaid expenses and
other
|
|
(2,712)
|
|
(1,144)
|
Income tax
receivable/payable
|
|
1,239
|
|
(3,560)
|
Other
assets
|
|
(390)
|
|
(423)
|
Accounts
payable
|
|
3,744
|
|
(4,494)
|
Accrued expenses and
other current liabilities
|
|
2,517
|
|
1,967
|
Total
Adjustments
|
|
7,421
|
|
(91,873)
|
Net Cash Provided
By (Used In) Operating Activities
|
|
$
10,705
|
|
$
(31,745)
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30,
|
(In
thousands)
|
|
2023
|
|
2022
|
Net Cash Provided By
(Used In) Operating Activities
|
|
|
|
|
As reported
|
|
$
10,705
|
|
$
(31,745)
|
Net borrowings
(repayments) on floor plan notes payable
|
|
(44,293)
|
|
89,487
|
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
|
|
$
2,141
|
|
$
57,742
|
Reconciliation of
Non-GAAP Measures
|
|
|
|
Three months ended
June 30, 2023
|
($ in thousands,
except per share amounts)
|
|
As
reported
|
LIFO
|
Acquisition
expense
|
Storm
Reserve
|
Adjusted
|
Costs applicable to
revenues
|
|
$ 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
|
Gain on change in fair
value of warrant liabilities
|
|
—
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
(Loss) income before
income taxes
|
|
$
4,866
|
$
76
|
$
209
|
$
300
|
$
5,451
|
Income tax benefit
(expense)
|
|
(1,306)
|
(48)
|
(51)
|
(106)
|
(1,511)
|
Net (loss)
income
|
|
$
3,560
|
$
28
|
$
158
|
$
194
|
$
3,940
|
|
|
|
|
|
|
|
Diluted income per
share
|
|
$
0.12
|
|
|
|
$
0.14
|
Shares used for diluted
calculation
|
|
14,292,064
|
|
|
|
|
|
|
Three months ended
June 30, 2022
|
($ in thousands,
except per share amounts)
|
|
As
reported
|
|
Gain on
change in fair
value of
warrant
liabilities
|
|
LIFO
|
|
Acquisition
expense
|
|
Severance
and transition
costs
|
|
Adjusted
|
Costs applicable to
revenues
|
|
$
274,935
|
|
$
—
|
|
$ (1,866)
|
|
$
—
|
|
$
—
|
|
$ 273,069
|
Selling, general and
administrative
expenses
|
|
61,605
|
|
—
|
|
—
|
|
(87)
|
|
(223)
|
|
61,295
|
Income from
operations
|
|
32,960
|
|
—
|
|
1,866
|
|
87
|
|
223
|
|
35,136
|
Gain on change in fair
value of
warrant liabilities
|
|
9,652
|
|
(9,652)
|
|
—
|
|
—
|
|
—
|
|
—
|
Income (loss) before
income taxes
|
|
$ 39,227
|
|
$
(9,652)
|
|
$
1,866
|
|
$
87
|
|
$
223
|
|
$
31,751
|
Income tax
expense
|
|
(7,383)
|
|
—
|
|
(774)
|
|
(36)
|
|
(92)
|
|
(8,285)
|
Net income
(loss)
|
|
$ 31,844
|
|
$
(9,652)
|
|
$
1,092
|
|
$
51
|
|
$
131
|
|
$
23,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
0.81
|
|
|
|
|
|
|
|
|
|
$
0.87
|
Shares used for diluted
calculation
|
|
12,871,296
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 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
|
Storm
Reserve
|
Adjusted
|
Costs applicable to
revenues
|
$
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)
|
—
|
—
|
—
|
—
|
|
—
|
(Loss) income
before income
taxes
|
$
4,447
|
$
(856)
|
$
1,387
|
$
471
|
$
653
|
$
629
|
$
300
|
$ 7,031
|
Income tax benefit
(expense)
|
(1,163)
|
—
|
(296)
|
(101)
|
(124)
|
(119)
|
(106)
|
(1,909)
|
Net (loss)
income
|
$
3,284
|
$
(856)
|
$
1,091
|
$
370
|
$
529
|
$
510
|
$
194
|
$ 5,122
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
income per share
|
$
—
|
|
|
|
|
|
|
$ 0.13
|
Shares used for
diluted calculation
|
13,188,135
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2022
|
($ in thousands,
except per share
amounts)
|
|
As
reported
|
|
Gain on
change in
fair value of
warrant
liabilities
|
|
LIFO
|
|
Acquisition
expense
|
|
Severance
and
transition
costs
|
|
Adjusted
|
Costs applicable to
revenues
|
|
$
552,279
|
|
$
—
|
|
$ (4,326)
|
|
$
—
|
|
$
—
|
|
$
547,953
|
Selling, general and
administrative
expenses
|
|
117,709
|
|
—
|
|
—
|
|
(121)
|
|
(223)
|
|
117,365
|
Income from
operations
|
|
71,589
|
|
—
|
|
4,326
|
|
121
|
|
223
|
|
76,259
|
Gain on change in fair
value of
warrant liabilities
|
|
11,192
|
|
(11,192)
|
|
—
|
|
—
|
|
—
|
|
—
|
Income (loss) before
income taxes
|
|
$ 76,484
|
|
$
(11,192)
|
|
$
4,326
|
|
$
121
|
|
$
223
|
|
$ 69,962
|
Income tax
expense
|
|
(16,356)
|
|
—
|
|
(1,760)
|
|
(49)
|
|
(92)
|
|
(18,257)
|
Net income
(loss)
|
|
$ 60,128
|
|
$
(11,192)
|
|
$
2,566
|
|
$
72
|
|
$
131
|
|
$ 51,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
1.98
|
|
|
|
|
|
|
|
|
|
$
2.12
|
Shares used for diluted
calculation
|
|
13,914,982
|
|
|
|
|
|
|
|
|
|
|
|
* In periods where the
change in fair value of warrants is a gain, the diluted EPS
calculation is not affected by this line item.
|
Contact:
investors@lazydays.com
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SOURCE Lazydays Holdings, Inc.