TAMPA,
Fla., Nov. 3, 2023 /PRNewswire/ -- Lazydays
(NasdaqCM: LAZY) today reported financial results for the third
quarter ended September 30, 2023.
Third quarter 2023 revenue decreased to $280.7 million from $333.8 million in the third quarter of
2022.
Third quarter 2023 net loss was $(5.6) million
compared to net income of $7.7 million for the same period in 2022.
Third quarter 2023 adjusted net loss, a non-GAAP measure, was
$(2.9) million compared to net income of $14.4 million for the same period in 2022.
Third quarter 2023 net loss per diluted share was $(0.48) compared to net income per diluted share
of $0.35 for the same period in 2022.
Adjusted third quarter 2023 net loss per diluted share was
$(0.29) compared to net income per
diluted share of $0.54 for the same
period in 2022.
As shown in the attached non-GAAP reconciliation tables, the
third quarter of 2023 adjusted results exclude a net non-core
charge of $0.19 per diluted share
related to our LIFO adjustment, acquisition expenses and severance
and transition costs. The third quarter of 2022 adjusted results
exclude a net non-core charge of $0.19 related to the effects of changes in fair
value of warrant liabilities, our LIFO adjustment and severance and
transition costs.
Year to date net loss was $(2.3)
million compared to net income of $67.8 million for the same period in 2022. Year
to date 2023 adjusted net income was $2.2
million compared to net income of $66.1 million for the same period in 2022. Year
to date 2023 net loss per diluted share was $(0.49) compared to net income per diluted share
of $2.39 for the same period in 2022,
and adjusted net loss per diluted share was $(0.07) compared to adjusted net income per
diluted share of $2.74 for the same
period in 2022.
The adjusted year to date results for the nine months of 2023
exclude a net non-core charge of $0.42 related to the effects of changes in the
fair value of warrant liabilities, our LIFO adjustment, acquisition
expenses, severance and 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 $0.35 related to the effects of changes in the
fair value of warrant liabilities, our LIFO adjustment, acquisition
expenses and severance and transition costs.
Corporate Development
As previously announced, during
the quarter we acquired Buddy Gregg Motorhomes in Knoxville, Tennessee as well as Century RV in
Longmont, Colorado. We also opened
our Wilmington, Ohio greenfield
location. We estimate these stores will add $125 million in
revenues at steady state.
In July we closed our Maryville,
Tennessee location due to the expansion of the Alcoa Highway
by the Tennessee DOT. In September we closed our Burns Harbor, Indiana location, consolidating
operations into our nearby Elkhart,
Indiana location.
Earlier this week we announced the opening of our Fort Pierce, Florida greenfield and we remain
on track to open our Surprise,
Arizona greenfield location in the fourth quarter.
Balance Sheet Update
We ended the third quarter with
total estimated liquidity of $67.8
million including cash of $32.9
million, $4.6 million of
availability on our revolving credit facility and $30.2 million in available from undrawn floor
plan capacity and our floor plan offset account. Additionally, we
hold approximately $95.5 million of
unfinanced real estate that we estimate could provide $80.6 million of additional
liquidity.
On September 12, 2023, we filed a registration statement on
Form S-1, as amended, with the Securities and Exchange Commission
for a rights offering. The Rights Offering was made effective
by the SEC October 23, 2023 and the
subscription period will expire on November
14, 2023. Assuming the rights offering is fully subscribed,
we estimate the total purchase price of the shares offered in the
rights offering, representing the aggregate net proceeds received
by us, will be approximately $99.6
million. We expect the net proceeds of the offering will be
used for our growth initiatives including acquisitions and new
business development activities and general corporate purposes,
which may include repaying or refinancing some or all of our
existing or future debt facilities.
Conference Call Information
We have scheduled a
conference call at 8:30 AM Eastern Time on
Friday, November 3, 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.
Contact:
investors@lazydays.com
Results of Operations
|
Three months
ended
September 30,
|
|
|
Nine months
ended
September 30,
|
|
(In thousands except
share and per share
amounts)
|
2023
|
2022
|
%
Change
|
|
2023
|
2022
|
%
Change
|
Revenue
|
|
|
|
|
|
|
|
New vehicle
retail
|
$ 172,898
|
$ 203,456
|
(15.0) %
|
|
$ 532,397
|
$ 640,078
|
(16.8) %
|
Pre-owned vehicle
retail
|
75,059
|
90,725
|
(17.3) %
|
|
250,825
|
319,655
|
(21.5) %
|
Vehicle
wholesale
|
2,056
|
6,622
|
(69.0) %
|
|
5,480
|
18,850
|
(70.9) %
|
Finance and
insurance
|
16,462
|
18,574
|
(11.4) %
|
|
51,085
|
61,591
|
(17.1) %
|
Service, body and
parts and other
|
14,207
|
14,381
|
(1.2) %
|
|
44,931
|
43,297
|
3.8 %
|
Total
revenue
|
280,682
|
333,758
|
(15.9) %
|
|
884,718
|
1,083,471
|
(18.3) %
|
|
|
|
|
|
|
|
|
Cost applicable to
revenues
|
|
|
|
|
|
|
|
New vehicle
retail
|
154,181
|
169,445
|
(9.0) %
|
|
465,656
|
517,160
|
(10.0) %
|
Pre-owned vehicle
retail
|
59,693
|
70,469
|
(15.3) %
|
|
199,646
|
242,379
|
(17.6) %
|
Vehicle
wholesale
|
2,026
|
6,813
|
(70.3) %
|
|
5,432
|
19,226
|
(71.7) %
|
Finance and
insurance
|
569
|
676
|
(15.8) %
|
|
2,072
|
2,216
|
(6.5) %
|
Service, body and
parts and other
|
7,109
|
6,887
|
3.2 %
|
|
21,807
|
21,263
|
2.6 %
|
LIFO
|
2,663
|
3,904
|
(31.8) %
|
|
4,049
|
8,230
|
(50.8) %
|
Total cost applicable
to revenue
|
226,241
|
258,194
|
(12.4) %
|
|
698,662
|
810,474
|
(13.8) %
|
Gross profit
|
54,441
|
75,564
|
(28.0) %
|
|
186,056
|
272,997
|
(31.8) %
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
4,602
|
4,202
|
9.5 %
|
|
13,464
|
12,338
|
9.1 %
|
Selling, general, and
administrative expenses
|
48,250
|
55,541
|
(13.1) %
|
|
152,262
|
173,249
|
(12.1) %
|
Income from
operations
|
1,589
|
15,821
|
(90.0) %
|
|
20,330
|
87,410
|
(76.7) %
|
Other income
(expense)
|
|
|
|
|
|
|
|
Floor plan interest
expense
|
(6,258)
|
(2,621)
|
138.8 %
|
|
(17,624)
|
(5,063)
|
248.1 %
|
Other interest
expense
|
(2,701)
|
(1,982)
|
36.3 %
|
|
(6,484)
|
(5,837)
|
11.1 %
|
Change in fair value
of warrant liabilities
|
—
|
(521)
|
(100.0) %
|
|
856
|
10,671
|
(92.0) %
|
Gain (loss) on sale of
property and equipment
|
(21)
|
—
|
NM
|
|
(21)
|
—
|
NM
|
Total other (expense)
income, net
|
(8,980)
|
(5,124)
|
75.3 %
|
|
(23,273)
|
(229)
|
NM
|
Income (loss) before
income tax expense
|
(7,391)
|
10,697
|
(169.1) %
|
|
(2,943)
|
87,181
|
(103.4) %
|
Income tax benefit
(expense)
|
1,805
|
(3,032)
|
(159.5) %
|
|
642
|
(19,388)
|
(103.3) %
|
Net income
(loss)
|
(5,586)
|
7,665
|
(172.9) %
|
|
(2,301)
|
67,793
|
(103.4) %
|
Dividends on Series A
convertible preferred
stock
|
(1,210)
|
(1,210)
|
— %
|
|
(3,590)
|
(3,590)
|
— %
|
Net income (loss) and
comprehensive income
attributable to common stock and participating
securities
|
$
(6,796)
|
$
6,455
|
(205.3) %
|
|
$
(5,891)
|
$
64,203
|
(109.2) %
|
|
|
|
|
|
|
|
|
EPS:
|
|
|
|
|
|
|
|
Basic
|
$
(0.48)
|
$
0.38
|
(226.3) %
|
|
$
(0.44)
|
$
3.57
|
(112.3) %
|
Diluted
|
$
(0.48)
|
$
0.35
|
(237.1) %
|
|
$
(0.49)
|
$
2.39
|
(120.5) %
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
14,263,367
|
11,132,317
|
28.1 %
|
|
13,470,219
|
11,930,649
|
12.9 %
|
Diluted
|
14,263,367
|
11,883,985
|
20.0 %
|
|
13,470,219
|
13,351,591
|
0.9 %
|
|
NM - not
Meaningful
|
Total Results Summary
|
Three months
ended
September 30,
|
|
|
|
Nine months
ended
September 30,
|
|
|
|
2023
|
2022
|
Change
|
|
|
2023
|
2022
|
Change
|
|
Gross profit
margins
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
10.8 %
|
16.7 %
|
(590)
|
bps
|
|
12.5 %
|
19.2 %
|
(670)
|
bps
|
Pre-owned vehicle
retail
|
20.5 %
|
22.3 %
|
(180)
|
bps
|
|
20.4 %
|
24.2 %
|
(380)
|
bps
|
Vehicle
wholesale
|
1.5 %
|
(2.9) %
|
440
|
bps
|
|
0.9 %
|
(2.0) %
|
290
|
bps
|
Finance and
insurance
|
96.5 %
|
96.4 %
|
10
|
bps
|
|
95.9 %
|
96.4 %
|
(50)
|
bps
|
Service, body and
parts and other
|
50.0 %
|
52.1 %
|
(210)
|
bps
|
|
51.5 %
|
50.9 %
|
60
|
bps
|
Total gross profit
margin
|
19.4 %
|
22.6 %
|
(320)
|
bps
|
|
21.0 %
|
25.2 %
|
(420)
|
bps
|
Total gross profit
margin (excluding
LIFO)
|
20.3 %
|
23.8 %
|
(350)
|
bps
|
|
21.5 %
|
26.0 %
|
(450)
|
bps
|
|
|
|
|
|
|
|
|
|
|
Retail units
sold
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
2,046
|
2,377
|
(331)
|
|
|
6,005
|
7,102
|
(1,097)
|
|
Pre-owned vehicle
retail
|
1,162
|
1,335
|
(173)
|
|
|
3,854
|
4,410
|
(556)
|
|
Total retail units
sold
|
3,208
|
3,712
|
(504)
|
|
|
9,859
|
11,512
|
(1,653)
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price per retail unit
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
$
84,505
|
$
85,594
|
$
(1,089)
|
|
|
$
88,659
|
$
90,126
|
$
(1,467)
|
|
Pre-owned vehicle
retail
|
64,595
|
67,959
|
(3,364)
|
|
|
65,082
|
72,484
|
(7,402)
|
|
|
|
|
|
|
|
|
|
|
|
Average gross profit
per retail unit
(excluding LIFO)
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
$
9,148
|
$
14,308
|
$
(5,160)
|
|
|
$
11,114
|
$
17,307
|
$
(6,193)
|
|
Pre-owned vehicle
retail
|
13,224
|
15,174
|
(1,950)
|
|
|
13,279
|
17,523
|
(4,244)
|
|
Finance and
insurance
|
4,954
|
4,822
|
132
|
|
|
4,972
|
5,158
|
(186)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
mix
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
61.6 %
|
61.0 %
|
|
|
|
60.2 %
|
59.1 %
|
|
|
Pre-owned vehicle
retail
|
26.7 %
|
27.2 %
|
|
|
|
28.4 %
|
29.5 %
|
|
|
Vehicle
wholesale
|
0.7 %
|
2.0 %
|
|
|
|
0.6 %
|
1.7 %
|
|
|
Finance and
insurance
|
5.9 %
|
5.6 %
|
|
|
|
5.8 %
|
5.7 %
|
|
|
Service, body and
parts and other
|
5.1 %
|
4.3 %
|
|
|
|
5.1 %
|
4.0 %
|
|
|
|
100.0 %
|
100.0 %
|
|
|
|
100.0 %
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
mix
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
34.4 %
|
45.0 %
|
|
|
|
35.9 %
|
45.0 %
|
|
|
Pre-owned vehicle
retail
|
28.2 %
|
26.8 %
|
|
|
|
27.5 %
|
28.3 %
|
|
|
Vehicle
wholesale
|
0.1 %
|
(0.3) %
|
|
|
|
— %
|
(0.1) %
|
|
|
Finance and
insurance
|
29.2 %
|
23.7 %
|
|
|
|
26.3 %
|
21.7 %
|
|
|
Service, body and
parts and other
|
13.0 %
|
9.9 %
|
|
|
|
12.4 %
|
8.1 %
|
|
|
LIFO
|
(4.9) %
|
(5.2) %
|
|
|
|
(2.2) %
|
(3.0) %
|
|
|
|
100.0 %
|
100.0 %
|
|
|
|
100.0 %
|
100.0 %
|
|
|
Other Metrics
|
Adjusted
|
|
As
Reported
|
|
Adjusted
|
|
As
Reported
|
|
Three months
ended
September 30,
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
2023
|
2022
|
|
2023
|
2022
|
SG&A as a % of
revenue
|
16.7 %
|
16.5 %
|
|
17.2 %
|
16.6 %
|
|
16.8 %
|
15.9 %
|
|
17.2 %
|
16.0 %
|
SG&A as % of gross
profit, excluding LIFO
|
82.1 %
|
77.0 %
|
|
84.5 %
|
77.5 %
|
|
78.3 %
|
65.2 %
|
|
80.1 %
|
65.4 %
|
Income from operations
as a % of revenue
|
2.0 %
|
6.0 %
|
|
0.6 %
|
4.7 %
|
|
3.1 %
|
8.9 %
|
|
2.3 %
|
8.1 %
|
Income from operations
as a % of gross
profit, excluding LIFO
|
9.8 %
|
28.1 %
|
|
2.8 %
|
22.1 %
|
|
14.6 %
|
36.4 %
|
|
10.7 %
|
33.0 %
|
Income (loss) before
income taxes as % of
revenue
|
(1.2) %
|
4.6 %
|
|
(2.6) %
|
3.2 %
|
|
0.4 %
|
7.9 %
|
|
(0.3) %
|
8.0 %
|
Net income (loss) as a
% of revenue
|
(1.0) %
|
4.3 %
|
|
(2.0) %
|
2.3 %
|
|
0.3 %
|
6.1 %
|
|
(0.3) %
|
6.3 %
|
Other Highlights
|
|
As of
|
|
|
September 30,
2023
|
|
December 31,
2022
|
Store
Count
|
|
|
|
|
Dealerships
|
|
21
|
|
18
|
|
|
|
|
|
Days
Supply*
|
|
|
|
|
New vehicle
inventory
|
|
171
|
|
250
|
Pre-owned vehicle
inventory
|
|
133
|
|
78
|
|
* Days supply
calculated based on current inventory levels and a 90 day
historical average cost of sales level.
|
Financial Covenants
|
|
|
|
As of
|
|
|
Requirement
|
|
September 30,
2023
|
Fixed charge coverage
ratio
|
|
Not less than 1.25 to
1
|
|
1.63
|
Leverage
ratio
|
|
Not more than 3.0 to
1
|
|
3.00
|
Current
ratio
|
|
Not less than 1.15 to
1
|
|
1.16
|
Same-Store Results Summary
|
Three months
ended
September 30,
|
|
|
|
Nine months
ended
September 30,
|
|
|
|
(In thousands,
except vehicle and
per vehicle data)
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
$
150,103
|
|
$
187,323
|
|
(19.9) %
|
|
$
472,339
|
|
$
601,706
|
|
(21.5) %
|
|
Pre-owned vehicle
retail
|
66,507
|
|
85,931
|
|
(22.6) %
|
|
227,935
|
|
305,378
|
|
(25.4) %
|
|
Vehicle
wholesale
|
2,054
|
|
6,615
|
|
(68.9) %
|
|
5,233
|
|
18,790
|
|
(72.2) %
|
|
Finance and
insurance
|
13,915
|
|
17,331
|
|
(19.7) %
|
|
45,257
|
|
58,589
|
|
(22.8) %
|
|
Service, body and
parts and other
|
12,565
|
|
13,782
|
|
(8.8) %
|
|
40,284
|
|
41,701
|
|
(3.4) %
|
|
Total
revenues
|
245,144
|
|
310,982
|
|
(21.2) %
|
|
791,048
|
|
1,026,164
|
|
(22.9) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
15,690
|
|
31,253
|
|
(49.8) %
|
|
58,899
|
|
115,661
|
|
(49.1) %
|
|
Pre-owned vehicle
retail
|
13,279
|
|
19,086
|
|
(30.4) %
|
|
46,109
|
|
73,684
|
|
(37.4) %
|
|
Vehicle
wholesale
|
31
|
|
(191)
|
|
NM
|
|
51
|
|
(373)
|
|
NM
|
|
Finance and
insurance
|
13,437
|
|
16,702
|
|
(19.5) %
|
|
43,400
|
|
56,462
|
|
(23.1) %
|
|
Service, body and
parts and other
|
6,537
|
|
7,023
|
|
(6.9) %
|
|
20,651
|
|
21,050
|
|
(1.9) %
|
|
LIFO
|
(2,663)
|
|
(3,903)
|
|
(31.8) %
|
|
(4,049)
|
|
(8,230)
|
|
(50.8) %
|
|
Total gross
profit
|
46,311
|
|
69,970
|
|
(33.8) %
|
|
165,061
|
|
258,254
|
|
(36.1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
margins
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
10.5 %
|
|
16.7 %
|
|
(620)
|
bps
|
12.5 %
|
|
19.2 %
|
|
(670)
|
bps
|
Pre-owned vehicle
retail
|
20.0 %
|
|
22.2 %
|
|
(220)
|
bps
|
20.2 %
|
|
24.1 %
|
|
(390)
|
bps
|
Vehicle
wholesale
|
1.5 %
|
|
(2.9) %
|
|
440
|
bps
|
1.0 %
|
|
(2.0) %
|
|
300
|
bps
|
Finance and
insurance
|
96.6 %
|
|
96.4 %
|
|
20
|
bps
|
95.9 %
|
|
96.4 %
|
|
(50)
|
bps
|
Service, body and
parts and other
|
52.0 %
|
|
51.0 %
|
|
100
|
bps
|
51.3 %
|
|
50.5 %
|
|
80
|
bps
|
Total gross profit
margin
|
18.9 %
|
|
22.5 %
|
|
(360)
|
bps
|
20.9 %
|
|
25.2 %
|
|
(430)
|
bps
|
Total gross profit
margin
(excluding LIFO)
|
20.0 %
|
|
23.8 %
|
|
(380)
|
bps
|
21.4 %
|
|
26.0 %
|
|
(460)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail units
sold
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
1,683
|
|
2,121
|
|
(20.7) %
|
|
5,109
|
|
6,471
|
|
(21.0) %
|
|
Pre-owned vehicle
retail
|
1,011
|
|
1,227
|
|
(17.6) %
|
|
3,404
|
|
4,098
|
|
(16.9) %
|
|
Total retail units
sold
|
2,694
|
|
3,348
|
|
(19.5) %
|
|
8,513
|
|
10,569
|
|
(19.5) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling
price per retail unit
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
$ 89,188
|
|
$ 88,318
|
|
1.0 %
|
|
$ 92,452
|
|
$ 92,985
|
|
(0.6) %
|
|
Pre-owned vehicle
retail
|
$ 65,783
|
|
$ 70,033
|
|
(6.1) %
|
|
$ 66,961
|
|
$ 74,519
|
|
(10.1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average gross profit
per retail unit
(excluding LIFO)
|
|
|
|
|
|
|
|
|
|
|
|
|
New vehicle
retail
|
$
9,323
|
|
$ 14,735
|
|
(36.7) %
|
|
$ 11,528
|
|
$ 17,874
|
|
(35.5) %
|
|
Pre-owned vehicle
retail
|
$ 13,135
|
|
$ 15,555
|
|
(15.6) %
|
|
$ 13,546
|
|
$ 17,981
|
|
(24.7) %
|
|
Finance and
insurance
|
$
4,988
|
|
$
4,989
|
|
— %
|
|
$
5,098
|
|
$
5,342
|
|
(4.6) %
|
|
|
NM - not
meaningful
|
Condensed Consolidated Balance Sheets
(In
thousands)
|
|
As of September 30,
2023
|
|
As of December 31,
2022
|
Current
assets
|
|
|
|
|
Cash
|
|
$
32,922
|
|
$
61,687
|
Receivables,
net
|
|
21,823
|
|
25,053
|
Inventories
|
|
385,329
|
|
378,881
|
Other current
assets
|
|
12,421
|
|
11,228
|
Total current assets
|
|
452,495
|
|
476,849
|
|
|
|
|
|
Long-term
assets
|
|
|
|
|
Property and
equipment, net
|
|
247,752
|
|
158,991
|
Goodwill and
intangible assets, net
|
|
184,551
|
|
165,125
|
Other
assets
|
|
30,745
|
|
29,753
|
Total assets
|
|
$
915,543
|
|
$
830,718
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Floor plan notes
payable
|
|
334,218
|
|
348,735
|
Other current
liabilities
|
|
56,092
|
|
50,890
|
Total current liabilities
|
|
390,310
|
|
399,625
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
Financing
liability, non-current portion, net
|
|
92,073
|
|
89,770
|
Revolving line
of credit
|
|
45,000
|
|
—
|
Long-term debt,
non-current portion, net
|
|
28,513
|
|
10,131
|
Other long-term
liabilities
|
|
38,824
|
|
39,197
|
Total liabilities
|
|
594,720
|
|
538,723
|
|
|
|
|
|
Series A
Convertible Preferred Stock
|
|
54,983
|
|
54,983
|
Stockholders'
Equity
|
|
265,840
|
|
237,012
|
Total liabilities and stockholders' equity
|
|
$
915,543
|
|
$
830,718
|
Condensed Statements of Cash Flows
|
|
Nine months ended
September 30,
|
(In
thousands)
|
|
2023
|
|
2022
|
Cash Flows From
Operating Activities
|
|
|
|
|
Net income
(loss)
|
|
$
(2,301)
|
|
$
67,793
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
Stock based
compensation
|
|
2,067
|
|
2,083
|
Bad debt
expense
|
|
9
|
|
76
|
Depreciation of
property and equipment
|
|
7,992
|
|
6,893
|
Amortization of
intangible assets
|
|
5,501
|
|
5,445
|
Amortization of debt
discount
|
|
327
|
|
248
|
Non-cash lease
expense
|
|
201
|
|
131
|
Loss (gain) on sale of
property and equipment
|
|
21
|
|
(18)
|
Deferred income
taxes
|
|
(116)
|
|
—
|
Change in fair value
of warrant liabilities
|
|
(856)
|
|
(10,671)
|
Tax benefit related to
stock-based awards
|
|
—
|
|
—
|
Impairment
charges
|
|
629
|
|
—
|
Changes in operating
assets and liabilities (net of acquisitions):
|
|
|
|
|
Receivables
|
|
3,221
|
|
5,884
|
Inventories
|
|
18,427
|
|
(68,046)
|
Prepaid expenses and
other
|
|
(1,196)
|
|
(1,027)
|
Income tax
receivable/payable
|
|
(621)
|
|
(4,584)
|
Other
assets
|
|
(169)
|
|
(591)
|
Accounts
payable
|
|
5,511
|
|
(5,590)
|
Accrued expenses and
other current liabilities
|
|
1,787
|
|
(5,534)
|
Total
Adjustments
|
|
42,735
|
|
(75,301)
|
Net Cash Provided
By (Used In) Operating Activities
|
|
40,434
|
|
(7,508)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30,
|
(In
thousands)
|
|
2023
|
|
2022
|
Net Cash Provided By
(Used In) Operating Activities
|
|
|
|
|
As reported
|
|
$
40,434
|
|
$
(7,508)
|
Net (repayments)
borrowings on floor plan notes payable
|
|
(13,967)
|
|
89,835
|
Minus borrowings on
floor plan notes payable associated with acquired new
inventory
|
|
(19,726)
|
|
—
|
Plus net increase to
floor plan offset account
|
|
—
|
|
—
|
Net cash provided by
operating activities, as adjusted
|
|
$
6,741
|
|
$
82,327
|
Reconciliation of Non-GAAP Measures
|
Three months ended
September 30, 2023
|
($ in thousands,
except per share
amounts)
|
As
reported
|
LIFO
|
Acquisition
expense
|
Severance
and transition
costs
|
Adjusted
|
Costs applicable to
revenues
|
$
226,241
|
$
(2,663)
|
$
—
|
$
—
|
$
223,578
|
Selling, general and
administrative
expenses
|
48,250
|
|
(727)
|
(625)
|
46,898
|
Income from
operations
|
1,589
|
2,663
|
727
|
625
|
5,605
|
|
|
|
|
|
|
Income (loss) before
income tax
expense
|
$
(7,391)
|
$
2,663
|
$
727
|
$
625
|
$
(3,376)
|
Income tax benefit
(expense)
|
1,805
|
(873)
|
(238)
|
(205)
|
489
|
Net income
(loss)
|
$
(5,586)
|
$
1,790
|
$
489
|
$
420
|
$
(2,887)
|
|
|
|
|
|
|
Diluted net loss per
share
|
$
(0.48)
|
|
|
|
$
(0.29)
|
Shares used for diluted
calculation
|
14,263,367
|
|
|
|
|
|
Three months ended
September 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
|
$
258,194
|
$
—
|
$
(3,904)
|
$
—
|
$
—
|
$
254,290
|
Selling, general
and
administrative expenses
|
55,541
|
—
|
—
|
—
|
(377)
|
55,164
|
Income from
operations
|
15,821
|
—
|
3,904
|
—
|
377
|
20,102
|
Gain on change in fair
value
of warrant liabilities
|
(521)
|
521
|
—
|
—
|
—
|
—
|
Income (loss) before
income
taxes
|
$
10,697
|
$
521
|
$
3,904
|
$
—
|
$
377
|
15,499
|
Income tax
expense
|
(3,032)
|
—
|
1,758
|
50
|
92
|
(1,132)
|
Net income
|
$
7,665
|
$
521
|
$
5,662
|
$
50
|
$
469
|
$
14,367
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
0.35
|
|
|
|
|
$
0.54
|
Shares used for
diluted
calculation
|
11,883,985
|
|
|
|
|
|
|
Nine months ended
September 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
|
$
698,662
|
$
—
|
$ (4,049)
|
$
—
|
$
—
|
$
—
|
$
—
|
$ 694,613
|
Selling, general
and administrative
expenses
|
152,262
|
—
|
—
|
(1,198)
|
(1,278)
|
(629)
|
(300)
|
148,857
|
Income from
operations
|
20,330
|
—
|
4,049
|
1,198
|
1,278
|
629
|
300
|
27,785
|
Gain on change in
fair value of
warrant liabilities
|
856
|
(856)
|
—
|
—
|
—
|
—
|
|
—
|
(Loss) income
before income
taxes
|
$ (2,943)
|
$
(856)
|
$
4,049
|
$
1,198
|
$
1,278
|
$
629
|
$
300
|
$ 3,656
|
Income tax benefit
(expense)
|
642
|
—
|
(1,140)
|
(337)
|
(360)
|
(119)
|
(106)
|
(1,420)
|
Net (loss)
income
|
(2,301)
|
$
(856)
|
$
2,909
|
$
861
|
$
918
|
$
510
|
$
194
|
$ 2,236
|
|
|
|
|
|
|
|
|
|
Diluted net loss
per share
|
$
(0.49)
|
|
|
|
|
|
|
$ (0.07)
|
Shares used for
diluted calculation
|
13,742,180
|
|
|
|
|
|
|
|
|
Nine months ended
September 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
|
$ 810,474
|
$
—
|
(8,230)
|
$
—
|
$
—
|
$
802,244
|
Selling, general and
administrative
expenses
|
173,249
|
—
|
—
|
(121)
|
(600)
|
172,528
|
Income from
operations
|
87,410
|
—
|
8,230
|
121
|
600
|
96,361
|
Gain on change in fair
value of warrant
liabilities
|
10,671
|
(10,671)
|
—
|
—
|
—
|
—
|
Income (loss) before
income taxes
|
$
87,181
|
$
(10,671)
|
$
8,230
|
$
121
|
$
600
|
$
85,461
|
Income tax
expense
|
(19,388)
|
—
|
—
|
—
|
—
|
(19,388)
|
Net income
|
67,793
|
$
(10,671)
|
$
8,230
|
$
121
|
$
600
|
$
66,073
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
2.39
|
|
|
|
|
$
2.74
|
Shares used for diluted
calculation
|
13,351,591
|
|
|
|
|
|
|
* 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.