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Lazydays (LAZY) - 2024 Q3 - Quarterly Report
LAZYLazydays (LAZY)2024-11-18 21:48

Financial Performance - Total revenues for the three months ended September 30, 2024, were 213.465million,adecreaseof24213.465 million, a decrease of 24% compared to 280.682 million in the same period of 2023[16] - Gross profit for the three months ended September 30, 2024, was 45.313million,downfrom45.313 million, down from 54.441 million in the same period of 2023, representing a decline of 17%[16] - Net loss for the three months ended September 30, 2024, was 17.665million,comparedtoanetlossof17.665 million, compared to a net loss of 5.586 million in the same period of 2023, indicating a significant increase in losses[16] - Total revenues for the nine months ended September 30, 2024, were 722,745,000,adecreaseof18.3722,745,000, a decrease of 18.3% from 884,718,000 in 2023[153] - Net loss for the nine months ended September 30, 2024, was 83,866,comparedtoanetlossof83,866, compared to a net loss of 2,301 for the same period in 2023[26] - Total gross profit for the three months was 45,313,000,down16.845,313,000, down 16.8% from 54,441,000 in the same period last year[150] - Total gross profit for Q3 2024 was 108.5million,down108.5 million, down 64.3 million, or 37.2%, from 172.7millioninQ32023[161]AssetsandLiabilities−Totalassetsdecreasedto172.7 million in Q3 2023[161] Assets and Liabilities - Total assets decreased to 735.946 million as of September 30, 2024, down from 937.739millionasofDecember31,2023,reflectingareductionofapproximately21937.739 million as of December 31, 2023, reflecting a reduction of approximately 21%[10] - Total liabilities decreased to 605.018 million as of September 30, 2024, down from 724.549millionasofDecember31,2023,representingadeclineofabout16724.549 million as of December 31, 2023, representing a decline of about 16%[10] - Current liabilities totaled 392.018 million as of September 30, 2024, a decrease from 499.977millionasofDecember31,2023,indicatingareductionofapproximately22499.977 million as of December 31, 2023, indicating a reduction of approximately 22%[10] - The company’s cash position decreased to 13.536 million as of September 30, 2024, down from 58.085millionasofDecember31,2023[10]−Thecompany’sretainedearningsshowedadeficitof58.085 million as of December 31, 2023[10] - The company’s retained earnings showed a deficit of 37.713 million as of September 30, 2024, compared to retained earnings of 48.137millionasofDecember31,2023[10]−AsofSeptember30,2024,totalstockholders′equitywas48.137 million as of December 31, 2023[10] - As of September 30, 2024, total stockholders' equity was 68,565, a decrease from 87,998asofJune30,2024[18]RevenueBreakdown−Newvehicleretailrevenuedecreasedby29.387,998 as of June 30, 2024[18] Revenue Breakdown - New vehicle retail revenue decreased by 29.3% to 122,291,000 from 172,898,000year−over−year[150]−Pre−ownedvehicleretailrevenuedeclinedby19.8172,898,000 year-over-year[150] - Pre-owned vehicle retail revenue declined by 19.8% to 60,177,000 compared to 75,059,000inthepreviousyear[150]−Floridagenerated2975,059,000 in the previous year[150] - Florida generated 29% of total revenues for the three months ended September 30, 2024, down from 33% in the same period of 2023[84] - Thor Industries, Inc. accounted for 50% of total RV and replacement parts purchases for the nine months ended September 30, 2024, up from 38% in 2023[87] Expenses and Costs - Cash paid for interest during the nine months ended September 30, 2024, was 24,783, significantly higher than 7,402in2023[28]−Floorplaninterestexpenseincreasedto7,402 in 2023[28] - Floor plan interest expense increased to 6.361 million in Q3 2024 from 6.258millioninQ32023,reflectinghigheraverageborrowingrates[204]−OtherinterestexpenseforthethreemonthsendedSeptember30,2024,was6.258 million in Q3 2023, reflecting higher average borrowing rates[204] - Other interest expense for the three months ended September 30, 2024, was 5,564,000, an increase of 106.0% from 2,701,000in2023[205]−FortheninemonthsendedSeptember30,2024,otherinterestexpensetotaled2,701,000 in 2023[205] - For the nine months ended September 30, 2024, other interest expense totaled 15,924,000, up 145.6% from 6,484,000in2023[205]StockandEquity−Thecompanyhad2,421,841commonstockequivalentsharesexcludedfromthecalculationofdilutedlosspershareduetotheiranti−dilutiveeffectforthethreemonthsendedSeptember30,2024[93]−Thecompanygrantedaperformance−basedstockoptionfor1,500,000shareswithastrikepriceof6,484,000 in 2023[205] Stock and Equity - The company had 2,421,841 common stock equivalent shares excluded from the calculation of diluted loss per share due to their anti-dilutive effect for the three months ended September 30, 2024[93] - The company granted a performance-based stock option for 1,500,000 shares with a strike price of 2.00 per share in September 2024[110] - The Company raised gross proceeds of 30millionfromthesaleofPIPESharesatapriceof30 million from the sale of PIPE Shares at a price of 1.03 per share[125] - The Company agreed to exchange 600,000 shares of Preferred Stock for 66,488,948 shares of Common Stock, resulting in a loss of liquidation preference of approximately 68.5million[127]OperationalHighlights−AsofSeptember30,2024,LazydaysHoldings,Inc.operated23RVdealershipsacrossvariousstates,includingArizona,Colorado,andFlorida[31][32]−TheCompanyoperates23dealershipsin14states,withasignificantportionofnewRVunitssoldannuallyintheU.S.[144]−TheCompanyemploysapproximately1,300peopleacrossitsdealershiplocations,providingextensiveRVexpertisetocustomers[145]FutureOutlookandAgreements−TheCompanyexpectstheAssetPurchaseAgreementandRealEstatePurchaseAgreementtolikelyresultinanetlossaftertaxes,butcannotestimatetherangeoflossatthistime[120]−Thecompanyiscurrentlyevaluatingtheeffectsofnewaccountingstandardsonitsdisclosures,includingASU2023−07relatedtoreportablesegmentdisclosures[39]−TheCompanywilleliminatetestingofcertainfinancialcovenantsuntilMarch31,2026,andchangeperformancetargetsforcompliancewithfinancialcovenants[133]TaxInformation−IncometaxbenefitforthethreemonthsendedSeptember30,2024,was68.5 million[127] Operational Highlights - As of September 30, 2024, Lazydays Holdings, Inc. operated 23 RV dealerships across various states, including Arizona, Colorado, and Florida[31][32] - The Company operates 23 dealerships in 14 states, with a significant portion of new RV units sold annually in the U.S.[144] - The Company employs approximately 1,300 people across its dealership locations, providing extensive RV expertise to customers[145] Future Outlook and Agreements - The Company expects the Asset Purchase Agreement and Real Estate Purchase Agreement to likely result in a net loss after taxes, but cannot estimate the range of loss at this time[120] - The company is currently evaluating the effects of new accounting standards on its disclosures, including ASU 2023-07 related to reportable segment disclosures[39] - The Company will eliminate testing of certain financial covenants until March 31, 2026, and change performance targets for compliance with financial covenants[133] Tax Information - Income tax benefit for the three months ended September 30, 2024, was 381,000, a decrease of 1,424,000from1,424,000 from 1,805,000 in 2023[206] - The effective tax rate for the three months ended September 30, 2024, was (2.1)%, compared to (24.4)% in 2023[206] - For the nine months ended September 30, 2024, the income tax expense was (16,640,000),adecreaseof(16,640,000), a decrease of 17,282,000 from a benefit of $642,000 in 2023[206]